Senate Bill No. 538, introduced by Senator Dahle, aims to amend Section 20309 of the Government Code concerning the Public Employees Retirement System (PERS). The bill focuses on providing clarity and extending options for substitute teachers regarding their retirement coverage. Specifically, it allows members of PERS, who take up positions as substitute teachers, to elect to retain their PERS coverage under defined circumstances, thus ensuring continuity in their retirement benefits.
Currently, members of PERS can retain coverage if they are later employed in positions covered under the State Teachers Retirement Plan, provided they meet certain requirements. This bill introduces more flexible terms for substitute teachers, allowing them to retain their coverage even if they do not meet all standard administrative criteria, thus broadening the scope of eligible participants in the retirement system.
This legislative change comes in response to previous provisions that expire in January 2024, allowing emergency teaching services under an executive order to maintain PERS coverage. SB538 proposes a new eligibility criterion that would enable substitute teachers with valid permits, teaching up to 30 days per year, to benefit from the same provisions starting January 1, 2026. The amendment aims to enhance the attractiveness of substitute teaching roles by providing more substantial retirement benefits.
The bill's proponents argue that it serves to improve teacher retention and recruitment, especially amid ongoing educator shortages, by ensuring that substitute teachers have better access to retirement benefits, which may encourage more individuals to take on these roles. However, potential points of contention may arise from budgetary concerns surrounding the impact of extending PERS coverage to more educators and the sustainability of such programs in the face of financial scrutiny.