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Business Services - CalSTRS Creditable Compensation
January 1, 2015 marks the start of the new CalSTRS creditable compensation rules. These rules distinguish between the types of compensation that is creditable for retirement.
The new regulations specifically provide a one-time opportunity to restructure salary schedules in 2015 and further provides that restructures for a "class of one" (superintendents who are on their own salary schedule/contract) will be prohibited as of Jan 1 2016. Restructures are effective the date approved - I.e. cannot approve a restructure in March that is retroactive to January 1, 2015.
Under the old regulations allowances for cars, housing and phones were generally considered 'creditable compensation' and contributed to a members' defined benefit program - base retirement. Under the new regulations, these types of payments will be considered special compensation and will not be creditable to either the defined benefit OR the defined benefit supplement program. Each month that goes by without a restructure, all Superintendents with this type of salary arrangement will see their creditable compensation reduced.
The Lozano-Smith handout is the best summary overall. Also attached is a School Services article that speaks to this issue specifically.