BILL NUMBER: AB 1150 CHAPTERED
BILL TEXT
CHAPTER 966
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 1998
APPROVED BY GOVERNOR SEPTEMBER 29, 1998
PASSED THE ASSEMBLY AUGUST 31, 1998
PASSED THE SENATE AUGUST 28, 1998
AMENDED IN SENATE AUGUST 27, 1998
AMENDED IN SENATE JUNE 22, 1998
AMENDED IN SENATE JUNE 26, 1997
AMENDED IN ASSEMBLY MAY 6, 1997
AMENDED IN ASSEMBLY MAY 1, 1997
AMENDED IN ASSEMBLY APRIL 17, 1997
AMENDED IN ASSEMBLY APRIL 1, 1997
INTRODUCED BY Assembly Members Prenter, Ashburn, and Honda
FEBRUARY 28, 1997
An act to amend Section 24202 of, and to add Section 24202.5 to,
the Education Code, relating to the State Teachers' Retirement
System.
LEGISLATIVE COUNSEL'S DIGEST
AB 1150, Prenter. State Teachers' Retirement System: benefits.
The State Teachers' Retirement Law prescribes a 2% at age 60
retirement allowance.
This bill would incrementally increase that percentage to 2.40%
at age 63 for members who retire for service on and after January 1,
1999. The bill contains a statement of legislative findings and
declarations.
The bill would become operative only if AB 1102, AB 2804, and SB
1528 are all also enacted and become operative.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares that:
(a) The class size reduction program has increased the need for
experienced teachers.
(b) The first bill signed into law during the 1997-98 Regular
Session was Assembly Bill 18 (Chapter 1 of the Statutes of 1997)
which modified the State Teachers' Retirement Law to encourage
already-retired teachers to return to teach under the class size
reduction program.
(c) The State Teachers' Retirement Fund is now virtually fully
funded, and in a better position to fund benefit increases without
impact on the General Fund as never before.
(d) An April 1998 independent study commissioned by the State
Teachers' Retirement System, "Evaluating Adequacy, Competitive
Position and Suggested Plan Changes" noted that:
(1) The State Teachers' Retirement System is not competitive when
compared to the retirement systems for teachers in other western
states;
(2) That other teachers' retirement systems and the Public
Employees' Retirement System provide larger benefits at age 65; and
(3) That increasing the age factor for teaching after age 60 would
facilitate both teacher retention and making the teaching profession
more attractive to prospective teachers.
In enacting this act, it is the intent of the Legislature to
provide a retirement increase to State Teachers' Retirement System
members which will ameliorate the teacher shortage, increase the
attractiveness of teaching in California, provide State Teachers'
Retirement System members with better parity to other public
retirement systems without a cost to the General Fund, and provide
better retirement benefits for teachers who have devoted many years
to the education of children.
SEC. 2. Section 24202 of the Education Code is amended to read:
24202. (a) A member who retires for service after June 30, 1972,
shall receive a retirement allowance consisting of both of the
following:
(1) An annual allowance payable in monthly installments, upon
retirement at normal retirement age but less than age 601/4, equal to
2 percent of the final compensation for each year of credited
service. If the member's retirement is effective at less than normal
retirement age and between early retirement age and normal
retirement age, the member's allowance shall be reduced by one-half
of 1 percent for each full month, or fraction of a month that will
elapse until the member will attain normal retirement age.
(2) An annuity that shall be the actuarial equivalent of the
accumulated annuity deposit contributions standing to the credit of
the member's account at the time of retirement.
(b) In computing the amounts described in subdivision (a), the age
of the member on the last day of the month in which the retirement
allowance begins to accrue or such later date as provided in Section
24204 shall be used.
(c) The amendments to this section during the 1997-98 Regular
Session of the Legislature shall not apply to state employees.
SEC. 3. Section 24202.5 is added to the Education Code, to read:
24202.5. (a) A member who retires for service on or after January
1, 1999, shall receive a retirement allowance consisting of all of
the following:
(1) An annual allowance payable in monthly installments, upon
retirement equal to the percentage of the final compensation set
forth opposite the member's age at retirement in the following table
multiplied by each year of credited service:
Age at Retirement Percentage
60 ............................ 2.00
60 1/4 ........................ 2.033
60 1/2 ........................ 2.067
60 3/4 ........................ 2.10
61 ............................ 2.133
61 1/4 ........................ 2.167
61 1/2 ........................ 2.20
61 3/4 ........................ 2.233
62 ............................ 2.267
62 1/4 ........................ 2.30
62 1/2 ........................ 2.333
62 3/4 ........................ 2.367
63 and over ................... 2.40
(2) If the member's retirement is effective at less than normal
retirement age and between early retirement age and normal retirement
age, the member's allowance shall be reduced by one-half of 1
percent for each full month, or fraction of a month that will elapse
until the member will attain normal retirement age.
(3) An annuity that shall be the actuarial equivalent of the
accumulated annuity deposit contributions standing to the credit of
the member's account at the time of retirement.
(b) In computing the amounts described in subdivision (a), the age
of the member on the last day of the month in which the retirement
allowance begins to accrue or the later date as provided in Section
24204 shall be used.
SEC. 4. It is the intent of the Legislature that the benefit
improvements enacted by this act be funded pursuant to the amendments
to Section 22955 proposed by Assembly Bill 2804 of the 1997-98
Regular Session unless provided otherwise.
SEC. 5. This bill shall become operative only if Assembly Bill
1102, Assembly Bill 2804, and Senate Bill 1528 are all also enacted
and become operative.