Retired California Teachers Asked to Pay Back Miscalculated Benefits

U.S. one dollar banknotes are seen in front of displayed stock graph, on Feb. 8, 2021. Dado Ruvic/Reuters

Thousands of retired teachers in California are getting hit with significant bills from the state’s teacher retirement agency due to a miscalculation of benefits.

Now, those teachers are left to repay large sums to the California State Teacher Retirement System, the second-largest pension fund in the nation, according to the system’s website.

While some mistakes have happened due to reporting errors by retiring employees or the school district where they were employed, some are miscalculations by the system.

The amount an individual teacher must pay back varies from case to case, and it’s currently unknown how many teachers have been affected. However, the Mercury News reported that there were 10,000 retired teachers who had their benefits reduced between 2016 and 2022 and must now pay back some funds.

Prior to retirement, teachers who enroll pay a percentage of their paycheck into the system’s retirement account.

Each employee’s benefits package is then calculated according to the number of years worked, employee age, and compensation.

However, a spokesperson for the system told The Epoch Times that the overall number of retired teachers impacted is relatively low.

“While the number of retirees impacted by an employer error resulting in an overpayment is very low in comparison to our total membership, we are dedicated to continuing our work to avoid and reduce any errors from occurring,” the spokesperson said in an email.

While the system represents nearly 1 million California educators, in 2022, 86 employer errors were made resulting in employee benefit adjustments, according to a March 2023 system audit report.

Additionally, the spokesperson said, a new law implemented in January blocks the system from requiring teachers to repay for errors they didn’t make.

“[California State Teacher Retirement System] retirees impacted by the implementation of [Assembly Bill] 1667 will no longer be responsible for overpayments due to employer or system errors,” the spokesperson said. “The important change in the law will continue to allow members to take comfort knowing that their retirement earnings are secure.”

Under the new law, employers or the system must pay back amounts if they were the party that made the error—but this only applies to errors made after Jan. 1, 2023.

However, if the error was submitted by the employee, then they are responsible for repaying the amount required.

The California Retired Teachers’ Association declined to comment.