Addresses compensation reporting challenges and other concerns encountered by employers, members and CalSTRS staff by simplifying sections of the Teachers’ Retirement Law relating to creditable compensation and creditable service, effective upon a date determined by the CalSTRS board and no later than July 1, 2027.

Requires employing entities of certificated and classified employees to honor an employee’s request to transfer leave of absence for illness or injury at any time during the employee’s employment with the subsequent employing entity. Also removes the requirement that employees who have terminated employment must accept a new covered position within the next school year to qualify for sick leave transfer. Requires unused sick leave to be transferred between employers in days, not hours, and specifies information that must be shared with the transfer. Finally, specifies these provisions apply to county offices of education and state special schools.

Makes minor, technical and conforming changes to the Teachers’ Retirement Law to facilitate efficient administration of the State Teachers’ Retirement Plan (plan), which includes the Defined Benefit (DB) Program, the Defined Benefit Supplement Program and the Cash Balance Benefit Program. Also makes various minor, technical and conforming changes in the County Employees Retirement Law and the law related to the Judges’ Retirement System II.

Commencing January 1, 2028, and only if an appropriation is made in the Budget Act or another statute, provides for up to 14 weeks of fully paid leave for California public school employees for pregnancy, miscarriage, childbirth, termination of pregnancy or recovery from those conditions. Additionally, prohibits a leave of absence for any of these reasons from being deducted from other leaves of absence available to the employee.

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, 2031, unless and only until January 1, 2035, an unforeseeable event creates conditions that materially impact normal market mechanisms for pricing assets. Commencing February 1, 2025, 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 an investment managers under contract with those retirement systems for actions related to the bill.