The postretirement earnings limitation exemptions are set by the Teachers’ Retirement Law and contain a sunset date. That date is June 30, 2012. When a law contains a sunset date, it will expire or sunset on the determined date unless an extension in the law or the enactment of a new law occurs.
In the case of the postretirement earnings limit exemptions, legislation to extend the exemptions has not been enacted.
With the recent allegations of corporate misconduct, fraud and bribery, corporate accountability has become a high-profile issue. Media reports of questionable leadership underscore the role boards of directors play in the long-term growth of publicly held companies. Concerned investors like CalSTRS, want assurance that governance safeguards and effective internal controls are put in place to mitigate any future risk.
Although CalSTRS is not subject to the anti-assignment rules of ERISA or Internal Revenue Code Section 401(a)(13), the Teachers’ Retirement Law does provide protection from creditor attachments or what is referred to as an anti-assignment provision under 