BILL NUMBER: AB 232INTRODUCED BILL TEXT INTRODUCED BY Assembly Members Hill and Fletcher (Coauthor: Assembly Member Tran) (Coauthor: Senator DeSaulnier) FEBRUARY 5, 2009 An act to amend Section 24604 of, and to add Section 22336 to, the Education Code, relating to retirement. LEGISLATIVE COUNSEL'S DIGEST AB 232, as introduced, Hill. Teachers' retirement. The Teachers' Retirement Law establishes certain retirement benefits and procedures for the administration of those benefits to retired public school teachers and other persons formerly employed in connection with the schools, as specified. Existing law authorizes the retired member, disabled member, or beneficiary to specify that monthly benefit payments be disbursed by direct deposit, direct mail to a financial or other institution, or by mailing to a payment address provided by the retired member, disabled member, or beneficiary. Existing law requires the Teachers' Retirement Board to send a copy of the benefit payment information to any retired member, disabled member, or beneficiary who has payments transmitted by direct deposit or by mail to a financial institution unless the board has received a written request from that person not to send a copy of the information. This bill would delete the provision that requires the Teachers' Retirement Board to send a copy of the benefit payment information to any retired member, disabled member, or beneficiary who has payments transmitted by direct deposit or by mail to a financial institution. The bill would also authorize the board to implement technology improvements in the delivery of benefits and services to members, participants, and beneficiaries, subject to terms and conditions established by the board, if the board finds that the means by which those services are delivered provide a level of information security at least equal to the processes specified in law. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. It is the intent of the Legislature to promote the use of improvements in technology to provide services in the most cost-effective and efficient manner and also to use those improvements to engage in environmentally sound practices, such as reducing the amount of paper documents that are mailed and received. SEC. 2. Section 22336 is added to the Education Code, to read: 22336. Notwithstanding any other provision of law, the board is authorized to implement technology improvements in the delivery of benefits and services to members, participants, and beneficiaries, subject to terms and conditions established by the board, if the board finds that the means by which those services are delivered provide a level of information security at least equal to the processes specified in law. SEC. 3. Section 24604 of the Education Code is amended to read: 24604. (a) A retired member, disabled member, or beneficiary under this part shall specify whether monthly benefit payments are to be disbursed by: (1) direct deposit (electronic funds transfer); (2) direct mail to a financial or other institution; or (3) mailing to a payment address provided by the retired member, disabled member, or beneficiary. (b) A member or beneficiary under this part to whom a lump-sum payment or benefit is to be disbursed shall specify the address to which the payment shall be mailed.(c) (1) The board shall send a copy of the benefit payment information to any retired member, disabled member, or beneficiary under this part who has payments transmitted directly by electronic funds transfer or by mail to a financial institution, unless the board has received a written request from that person not to send a copy of the information.(2) The board shall notify the retired member, disabled member, or beneficiary, in the monthly benefit payment notice, of the right to request that no copy of the benefit payment information be mailed, pursuant to paragraph (1).(d)(c) A payment disbursed as specified by the member or beneficiary under this part shall fully discharge the board, system, and plan from any claim resulting from actions taken under this section.