CalSTRS and the Teachers’ Retirement Board propose to adopt amended regulations in Sections 20520, 27100, 27101, 27102 and 27103 in Chapter 1, Division 3, Title 5 of the California Code of Regulations and a new regulation in the form of Section 27102.5 in Chapter 1, Division 3, Title 5 of the California Code of Regulations, after considering all comments, objections and recommendations regarding the proposed action.

The California Education Code authorizes CalSTRS to hold a hearing for the purpose of determining any question to it involving any right, benefit or obligation of a person under its statutes. Existing regulations govern the administrative remedy process that occurs before a hearing is held by CalSTRS. In addition, the California Education Code authorizes CalSTRS to conduct employer audits as the board determines necessary. Existing regulations outline the administrative remedy process available for the audited employer and sampled members, but not additional members affected by an audit beyond those in the audit sample.

The proposed amendments to regulations make necessary updates to ensure the processes for disputing decisions or determinations by CalSTRS staff or findings in a final audit report are clearly laid out, including the actions to be taken by public agencies audited by CalSTRS and, subsequent to that, by CalSTRS and specified individuals affected by the findings in a final audit report, in alignment with Chapter 754, Statutes of 2022 (AB 1667–Cooper).

OAL File Number Z-2025-0701-02

Posted on July 11, 2025

Written comment period closes on September 4, 2025.