BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1381
                                                                  Page  1

          Date of Hearing:   April 17, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

             AB 1381 (Committee on PERSS) - As Introduced:  February 26,  
                                        2013 

          Policy Committee:                              PERSSVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes various technical corrections and conforming  
          changes that align the Teachers' Retirement Law (TRL) with the  
          provisions of the Public Employees' Pension Reform Act of 2013  
          (PEPRA), as enacted in AB 340 (Furutani), Chapter 296, Statutes  
          of 2012.  Specifically, this bill:  

          1)Revises a number of definitions in TRL to reflect PEPRA.

          2)Makes various changes to provisions governing age factors and  
            normal retirement age to be consistent with PEPRS.

          3)Excludes 2%-at-62 members from one-year final compensation  
            based on having 25 or more years of service credit or a  
            collective bargaining agreement.

          4)Makes various changes to provisions governing the limits on  
            amount and types of compensation as follows:

          5)Prohibits 2%-at-62 members from receiving any benefits from  
            CalSTRS in excess of the federal limit by excluding them from  
            the Replacement Benefits Program.

          6)Restricts the purchase of nonqualified service in the TRL.

          7)Makes various changes to provisions governing postretirement  
            employment, 

           FISCAL EFFECT  

          Minor and absorbable costs for CalSTRS.








                                                                  AB 1381
                                                                  Page  2


           COMMENTS  

           1)Purpose  .  According to the sponsor of the bill, CalSTRS, AB  
            1381 ensures continued implementation of PEPRA as intended by  
            placing the act's requirements in the TRL. This bill clarifies  
            which provisions of the TRL apply to members subject to PEPRA,  
            also known as CalSTRS 2%-at-62 members.  Members who were  
            hired to perform CalSTRS creditable activities on or before  
            December 31, 2012, are not subject to PEPRA and are known as  
            CalSTRS 2%-at-60 members.

           2)There is no registered opposition to this bill  .

           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081