BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 373  
                                                         Page 1

Date of Hearing: April 23, 1997

   ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                             SECURITY
                         Wally Knox, Chair

      AB 373 (Morrissey) - As Introduced:  February 19, 1997

  SUBJECT  :  School employees retirement.

  SUMMARY  :  Authorizes STRS to grant a limited exemption from  
post-retirement earning limitations to persons who have retired  
under specified "golden handshake" provisions.  Specifically,  this  
bill  :

1) Includes within the exemption from post-retirement earning  
   limitations persons who have received additional retirement  
   service credit as an incentive to retire ("golden handshake").   


2)  Provides that this exemption shall become effective one year  
after the retirement date of the affected person.

  EXISTING LAW  : 

1) Establishes an annual earning limitation for retired members of  
   STRS in a STRS-covered position of $15,000 per year, indexed  
   annually based on the All Urban California Consumer Price  
   Index.  If the retirant exceeds that earning limit, he or she  
   must provide a dollar-for-dollar offset to the retirement  
   allowance.  The estimated 1996-97 fiscal year earning limit is  
   $17,850.

2)  Enables STRS to grant a limited-term exemption from the  
earnings limitation of up to two years for persons appointed to  
oversee troubled school districts, or up to one-half time for  
persons hired to fill specialized positions on an emergency basis.

  FISCAL EFFECT  :  Unknown.

  COMMENTS  :  

1)   Sponsor   and   Purpose   The bill is sponsored by the Orange  
County Department of Education as a follow-up to AB 948 (Gallegos,  
Chapter 394, Statutes of 1995).  AB 948 exempted from the  
post-retirement earning limit trustees appointed to oversee  
fiscally troubled districts, or specialized emergency hires.   
According to the Department, the exclusion of "golden handshake"  
retirees from this limited-term earning limit limit exemption "has  
caused hardship for several Orange County districts."

2)   Arguments   in   Opposition   As of the date of this analysis, the  
Committee has received no opposition arguments to the bill. 










                                                          AB 373  
                                                         Page 2


  REGISTERED SUPPORT / OPPOSITION  :

  Support  

Orange County Department of Education (Sponsor)

  Opposition  

None on file.

  Analysis prepared by  :  Kate Riley / aper&ss / (916) 445-7440