Amended in Senate March 28, 2016

Senate Bill No. 1390

Introduced by Senator Block

February 19, 2016

begin delete An act relating to teachers. end delete begin insert An act to amend Section 24214.5 of the Education Code, relating to teachers. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1390, as amended, Block. Teachers: begin delete recruitment and retention. end delete begin insert retention: retirement. end insert

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Existing law, the Teachers’ Retirement Law, establishes the State Teachers’ Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers’ Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS is governed by the Teachers’ Retirement Board. Existing law permits members retired for service from STRS to perform member activities without reinstatement into the system if certain conditions are met and requires payment for the performance of retired member activities to be $0 during the first 180 calendar days after the most recent retirement of a retired member, as specified.

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This bill would authorize a member retired from service to perform member activities for a school district, notwithstanding the above-mentioned 180 calendar days compensation limitation, if certain conditions are met, including that there is a current or projected teacher shortage in a subject area, as designated by the Superintendent of Public Instruction.

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Existing law establishes various programs for the recruitment of teachers.

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This bill would state that it is the intent of the Legislature to enact legislation that would address the teacher shortage in California.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 24214.5 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

24214.5.  

(a) (1) Notwithstanding subdivision (f) of Section
24214, the postretirement compensation limitation that shall apply
to the compensation paid in cash to the retired member for
performance of retired member activities, excluding
reimbursements paid by an employer for expenses incurred by the
member in which payment of the expenses by the member is
substantiated, shall be zero dollars ($0) during the first 180 calendar
days after the most recent retirement of a member retired for service
under this part.

(2) For written agreements pertaining to the performance of
retired member activities entered into, extended, renewed, or
amended on or after January 1, 2014, the limitation in paragraph
(1) shall also apply to payments made for the performance of retired
member activities, including, but not limited to, those for
participation in a deferred compensation plan; to purchase an
annuity contract, tax-deferred retirement plan, or insurance
program; and for contributions to a plan that meets the requirements
of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title
26 of the United States Code when the cost is covered by an
employer.

(b) If the retired member has attained normal retirement age at
the time the compensation is earned, subdivision (a) shall not apply
and Section 24214 shall apply if the appointment has been
approved by the governing body of the employer in a public
meeting, as reflected in a resolution adopted by the governing body
of the employer prior to the performance of retired member
activities, expressing its intent to seek an exemption from the
limitation specified in subdivision (a). Approval of the appointment
may not be placed on a consent calendar. Notwithstanding any
other provision of Article 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code or any state or
federal law incorporated by subdivision (k) of Section 6254 of the
Government Code, the resolution shall be subject to disclosure by
the entity adopting the resolution and the system. The resolution
shall include the following specific information and findings:

(1) The nature of the employment.

(2) A finding that the appointment is necessary to fill a critically
needed position before 180 calendar days have passed.

(3) A finding that the member is not ineligible for application
of this subdivision pursuant to subdivision (d).

(4) A finding that the termination of employment of the retired
member with the employer is not the basis for the need to acquire
the services of the member.

(c) Subdivision (b) shall not apply to a retired member whose
termination of employment with the employer is the basis for the
need to acquire the services of the member.

(d) Subdivision (b) shall not apply if the retired member received
additional service credit pursuant to Section 22714 or 22715 or
received from any public employer any financial inducement to
retire. For purposes of this section, “financial inducement to retire”
includes, but is not limited to, any form of compensation or other
payment that is paid directly or indirectly by a public employer to
the member, even if not in cash, either before or after retirement,
if the participant retires for service on or before a specific date or
specific range of dates established by a public employer on or
before the date the inducement is offered. The system shall liberally
interpret this subdivision to further the Legislature’s intent to make
subdivision (b) inapplicable to members if the member received
a financial incentive from any public employer to retire or
otherwise terminate employment with a public employer.

(e) The Superintendent, the county superintendent of schools,
or the chief executive officer of a community college shall submit
all documentation required by the system to substantiate the
eligibility of the retired member for application of subdivision (b),
including, but not limited to, the resolution adopted pursuant to
that subdivision.

(f) The documentation required by this section shall be received
by the system prior to the retired member’s performance of retired
member activities.

(g) Within 30 calendar days after the receipt of all
documentation required by the system pursuant to this section, the
system shall inform the entity seeking application of the exemption
specified in subdivision (b), and the retired member whether the
compensation paid to the member will be subject to the limitation
specified in subdivision (a).

(h) If a member retired for service under this part earns
compensation for performing retired member activities in excess
of the limitation specified in subdivision (a), the member’s
retirement allowance shall be reduced by the amount of the excess
compensation. The amount of the reduction in an individual month
shall be no more than the monthly allowance payable in that month,
and the total amount of the reduction shall not exceed the amount
of the allowance payable during the first 180 calendar days, after
a member retired for service under this part.

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(i) Notwithstanding subdivision (a), a member retired from
service under this part may perform retired member activities for
any school district during the first 180 calendar days after the
most recent retirement of the retired member if all of the following
conditions are met:

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(1) There is a current or projected teacher shortage in a subject
area, as designated by the Superintendent.

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(2) The retired member is needed as a substitute teacher for
special education, mathematics, or science classes.

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(3) The school where the retired member is performing retired
member activities meets either of the following:

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(A) The enrollment of English language learners, students
eligible for free or reduced-price meals, or foster youth at the
school is equal to or greater than 55 percent of the school’s student
enrollment.

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(B) The school meets federal Provision 1, Provision 2, or
Provision 3 for participation in the National School Lunch
Program, as authorized by Section 11(a)(1) of the Richard B.
Russell National School Lunch Act (Public Law 113-79).

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(i)

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begin insert (j) end insert  The amendments to this section enacted during the first year
of the 2013-14 Regular Session shall apply to compensation paid
on or after January 1, 2014.

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SECTION 1.  

It is the intent of the Legislature to enact
legislation that would address the teacher shortage in California.

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