The Legislature hereby appropriates two billion two hundred forty-six million dollars ($2,246,000,000) from the General Fund for the 2018-19 fiscal year to be transferred to the Teachers’ Retirement Fund for the Defined Benefit Program, consistent with the requirements of this section and at the direction of the Department of Finance. The Department of Finance shall provide the Controller a schedule establishing the timing of specific transfers to be used for these payments. The payment to the Teachers’ Retirement Fund shall be apportioned as follows:

(a) A dollar amount to pay in advance, on behalf of employers, part of the contributions required by employers for the 2019-20 fiscal year, such that it will result in employers having to contribute 1.03 percentage points less in the 2019-20 fiscal year than the percentage set by paragraph (6) of subdivision (a) of Section 22950.5.

Terms Used In California Education Code 22950.6

  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.

(b) A dollar amount to pay in advance, on behalf of employers, part of the contributions required by employers for the 2020-21 fiscal year, such that it will result in employers having to contribute 2.95 percentage points less in the 2020-21 fiscal year than the percentage set by paragraph (7) of subdivision (a) of Section 22950.5.

(c) A dollar amount to pay in advance, on behalf of employers, part of the contributions required by employers for the 2021-22 fiscal year, such that it will result in employers having to contribute 2.18 percentage points less in the 2021-22 fiscal year than the percentage set by the board pursuant to subdivision (b) of Section 22950.5.

(d) Any remainder of the payment that has not been committed to the purposes specified in subdivisions (a), (b), and (c) shall be allocated to reduce the employers’ share of the unfunded actuarial obligation determined pursuant to Section 22950.5.

(Amended by Stats. 2020, Ch. 16, Sec. 1. (AB 84) Effective June 29, 2020.)

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