BILL ANALYSIS Ó
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
963 (Bonilla) - As Amended March 24, 2015
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|Policy |Public Employees, |Vote:|7 - 0 |
|Committee: |Retirement/Soc Sec | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill clarifies the definition of creditable service that
can be reported to the California State Teachers' Retirement
System (CalSTRS), includes CalSTRS membership for those in
partial certificated positions, and remedies membership issues
for individuals in classified positions who were erroneously
reported to CalSTRS.
FISCAL EFFECT:
1)One-time Special Fund administrative costs of approximately
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$100,000 to update systems and processes.
2)Potential de minimis impact to the Teachers Retirement Fund
from any loss of contributions for service paid on service
that was not creditable service.
COMMENTS:
Purpose. According to the sponsor, CalSTRS, existing law is
silent as to how employers report creditable service for partial
certificated positions when those persons perform both
creditable service and service not creditable to CalSTRS. As a
result, the author asserts some employers have erroneously
reported service to CalSTRS, individuals have been erroneously
removed from CalSTRS, and individuals have had service
erroneously reported to a different retirement system. This
bill is intended to ensure more effective and efficient
administration of the retirement plan and alleviate confusion
among employers with respect to determining what service is
creditable.
Analysis Prepared by:Joel Tashjian / APPR. / (916)
319-2081
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