SECTIONS 25930-25933 - California Statutes

EDUCATION CODE

SECTION 25930-25933

25930. There is in the State Treasury a special trust fund to be
known as the Teachers' Health Benefits Fund. There shall be deposited
in the fund the employer contributions required under subdivision
(c) of Section 22950, income on investments, other interest income,
income from fees and penalties, premiums paid by members, donations,
legacies, bequests made to the fund and accepted by the board, and
any other amounts provided by this part. Notwithstanding Section
13340 of the Government Code, the proceeds of the fund are hereby
continuously appropriated without regard to fiscal year for purposes
of this part. The design and administration of the fund and any
program financed from the fund shall comply with Section 115 of Title
26 of the United States Code.

25931. The board shall have exclusive control of the administration
of the fund. No transfers or disbursements of any amount from the
fund shall be made except upon the authorization of the board for the
purpose of carrying into effect the provisions of this part. Except
as otherwise limited by the California Constitution and by law, the
board may, in its discretion, invest the assets of the fund through
the purchase, holding, or sale of any investment, financial
instrument, or financial transaction, when the investment, financial
instrument, or financial transaction is prudent in the informed
opinion of the board.

25932. Return on investments shall be collected by the State
Treasurer and, together with any other moneys received for the fund,
shall be immediately deposited to the credit of the fund and reported
immediately to the system. Money in whatever form received directly
by the system for the fund shall be deposited immediately in the
State Treasury to the credit of the fund.

25933. (a) For purposes of this section, "plan" means any health
benefits program that is financed from the proceeds of the fund.
(b) The board shall maintain all data necessary to perform an
actuarial investigation of the demographic and economic experience of
the plan and for the actuarial valuation of the assets and
liabilities of the plan.
(c) The board shall retain the services of an actuary to do all of
the following:
(1) Make recommendations to the board for the adoption of
actuarial assumptions that, in the aggregate, are reasonably related
to the past experience of the plan and reflect the actuary's informed
estimate of future experience.
(2) Make an actuarial investigation of the demographic and
economic experience, including the mortality, service, and other
experience, of the plan with respect to members or any other persons
eligible to receive benefits from the plan.
(3) At least biennially, using actuarial assumptions adopted by
the board, perform an actuarial valuation of the plan that identifies
the assets and liabilities of the plan, and report the findings to
the board. The report of the actuary on the results of the actuarial
valuation shall identify and include the components of normal cost
and adequate information to determine the effects of changes in
actuarial assumptions. Copies of the report on the actuarial
valuation shall be transmitted to the Governor and to the
Legislature.
(4) Recommend to the board all rates and factors necessary to
administer the plan, including, but not limited to, mortality tables
and interest rates.
(5) Recommend to the board a strategy for amortizing any unfunded
actuarial obligation.