Among other provisions, requires that when a benefit is overpaid, the party responsible for the error that caused the overpayment must pay CalSTRS the full amount of the resulting overpayment, except in instances of CalSTRS error, in which case the overpayment must be recovered with interest on an annual basis from the General Fund and employers, as specified. Also requires CalSTRS to provide advisory letters on the proper reporting of compensation to specified parties and states that if compensation reported consistent with such a letter is later deemed to be reported in error, any resulting overpayment is deemed an error of the system and must be recovered as specified.

Makes various technical, conforming or minor changes to the Teachers’ Retirement Law to facilitate efficient administration of the State Teachers’ Retirement Plan, which includes the Defined Benefit Program, the Defined Supplement Program and the Cash Balance Benefit Program. Also makes various technical and conforming changes to the County Employees Retirement Law.

Provides additional Supplemental Benefit Maintenance Account (SBMA) benefits to members and beneficiaries of between 5% and 15% of their total benefit to be paid quarterly beginning July 1, 2023. The percentage increase depends on the date that the member retired, became disabled or died.

Prohibits the CalSTRS and CalPERS boards from making additional or new investments or renewing existing investments in a fossil fuel company, as defined, and requires divestment from such investments by July 1, 2030, unless and only until January 1, 2035, an unforeseeable event creates conditions that materially impact normal market mechanisms for pricing assets. Commencing February 1, 2024, also requires an annual report to be submitted to the Legislature and Governor with specified information. Also indemnifies present, former and future board members, officers and employees of and investment managers under contract with those retirement systems for actions related to the bill.

Prohibits the boards of specified state and local retirement systems from investing in companies that: are domiciled in Russia or Belarus; are owned directly or indirectly, by the government of Russia or Belarus or by a sanctioned person; the U.S. government has designated as complicit in Russia’s and Belarus’ war against Ukraine; or supply military equipment to Russia or Belarus. Also establishes reporting requirements. It prohibits all state agencies from investing in investment vehicles issued or owned by the governments of Russia or Belarus. In addition, prohibits companies that conduct business with the governments of Russia or Belarus from bidding on contracts with state agencies.

Requires charter schools authorized on and after January 1, 2023, to participate in CalSTRS and CalPERS. Requires employers that report directly to CalSTRS to requisition up to three months of estimated charter school contributions from the charter school’s apportionment for the purpose of paying contributions, as well as amounts necessary to pay penalties and interest, and requires those employers to use unencumbered funds, legally available for this purpose, to pay for any amounts due to CalSTRS that remain unpaid.  Also requires the chartering authority to notify CalSTRS and CalPERS of specified events within 30 calendar days of each occurrence.

Permits members of the Defined Benefit Program to elect to purchase additional service credit for up to four years of service prior to membership in the U.S. Armed Forces or in the U.S. Merchant Marine. The bill allows members to purchase up to one year of service credit for each five years of credited service with CalSTRS and requires a member electing to purchase this service credit to have at least 10 years of service with CalSTRS on the date of election.