Under the existing Teachers’ Retirement Law, service retirement benefits for members of the Defined Benefit Program are calculated by multiplying a specified percentage, up to 2.4%, of the member’s final compensation by the member’s years of credited service at the time of retirement. Existing law provides that the applicable percentage rate shall be increased by .2% for members who retire with 30 or more years of credited service, as specified, provided that the increased rate shall not exceed 2.4%.
This bill would increase the maximum percentage rate for calculating benefits for members who retire with 30 or more years of credited service to 2.6%.