Creditable Compensation Simplification regulations
After considering all comments, objections and recommendations, CalSTRS and the Teachers’ Retirement Board propose to:
- Adopt amended regulations in Sections 27201, 27300, 27301, 27400, 27401, 27600, 27601 and 27602 in Chapter 2, and Sections 27800 and 27801 in Chapter 3, Division 3, Title 5 of the California Code of Regulations,
- Adopt new regulations in the form of Sections 27250 and 27251 in Chapter 2, Division 3, Title 5 of the California Code of Regulations, and
- Repeal a regulation in Section 27200 in Chapter 2, Division 3, Title 5 of the California Code of Regulations.
The California Education Code requires that employers provide CalSTRS with information regarding compensation to be paid to employees subject to the Defined Benefit Program. Effective on July 1, 2027 (as adopted by the board on March 13, 2025), Chapter 690, Statutes of 2024 (AB 1997–McKinnor), simplifies requirements for creditable compensation and creditable service.
The proposed amendments to regulations in this rulemaking action update the existing creditable compensation regulations to implement the intended simplification associated with AB 1997, including the regulations defining creditable compensation and class of employees. In addition, the proposed amendments to regulations in this rulemaking action update the regulations that specify the electronic file formats employers are required to use to report member data like compensation and service information to CalSTRS.
OAL File Number Z-2025-0701-03
Posted on July 11, 2025
Written comment period closes on September 4, 2025.
Notice of Proposed RulemakingText of Proposed RegulationsInitial Statement of ReasonsEconomic and Fiscal Impact Statement (Standard Form 399)