New Zbur Law Expands Retirement Choices for Part-Time Community College Faculty

AB 2417 ensures part-time educators have access to Social Security and clear information to make informed retirement decisions

SACRAMENTO, CA - Democratic Caucus Chair and Assemblymember Rick Chavez Zbur (D-Hollywood) announced today that Governor Gavin Newsom has signed AB 2417, legislation strengthening retirement security for part-time community college faculty by expanding access to Social Security and ensuring educators have clear information about the retirement options available to them. Sponsored by the California Federation of Teachers (CFT) - A Union of Educators & Classified Professionals, AFL-CIO, AB 2417 ensures qualifying part-time community college faculty are offered Social Security alongside applicable CalSTRS retirement options and requires the development of informational materials to help educators understand the differences between those choices.

"Part-time faculty are essential to California's community colleges, and they deserve the information and choices they need to plan for a secure retirement," said Assemblymember Rick Chavez Zbur. "Many of these educators come to the classroom after years in other careers and have already spent much of their working lives paying into Social Security. AB 2417 ensures they have access to that option and clear information about the retirement plans available to them so they can make the decision that works best for their future. I'm proud to see this bill signed into law and grateful to CFT for sponsoring this legislation and fighting for California's part-time educators."

Many part-time community college faculty enter education after careers in other industries where they have contributed to Social Security for years. Yet retirement choices for part-time faculty can be complicated, and the consequences of choosing among different retirement systems can extend decades into an educator's financial future.

For faculty teaching part-time later in life or transitioning from another career, access to Social Security can be particularly important. AB 2417 establishes greater consistency across California's community college system by ensuring qualifying part-time faculty have access to the retirement options available to them and the information necessary to understand those choices.

AB 2417:

• Requires community college districts to offer qualifying part-time faculty the option of participating in Social Security, the CalSTRS Defined Benefit Program, or the CalSTRS Cash Balance Benefit Program, if offered; and
• Requires CalSTRS, in consultation with CalPERS, to provide information comparing the programs, including differences in membership and contributions, vesting timelines, and the impact of earning Social Security credits. Community college districts will provide this information to newly hired qualifying employees.

The legislation follows the enactment of the federal Social Security Fairness Act, which repealed the Windfall Elimination Provision and Government Pension Offset, policies that had historically reduced Social Security benefits for many educators and other public employees.

"Part-time Community College Faculty are grateful to Governor Newsom for signing Assembly Bill 2417, authored by Assemblymember Rick Zbur," said Jeff Freitas, President, California Federation of Teachers. "This bill will provide these educators with the information and options to make the best retirement security decision possible. The bill recognizes the unique place these educators are in, potentially having substantial social security credits from private-sector careers and allowing them to continue to accrue more credit if that is in their best interest. Now, faculty members will have the information and options to best fit their individual retirement plans and build for their future."

The new retirement information requirements established by AB 2417 will begin July 1, 2027.

Assemblymember Rick Chavez Zbur serves as the Democratic Caucus Chair for the California State Assembly and represents the 51st Assembly District, which includes Universal City, Hollywood, Hancock Park, West Hollywood, Beverly Hills, Westwood, West Los Angeles, Santa Monica, and other portions of Los Angeles.

CONTACT: Vienna Montague, (916) 319-2051, [email protected]