BILL ANALYSIS
SENATE RULES COMMITTEE SB 227
Office of Senate Floor Analyses
1020 N Street, Suite 524
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THIRD READING
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Bill No: SB 227
Author: Solis (D)
Amended: 6/3/97
Vote: 21
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SENATE PUBLIC EMP. & RET. COMMITTEE : 3-1, 3/31/97
AYES: Schiff, Burton, Karnette
NOES: Hurtt
NOT VOTING: Haynes
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
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SUBJECT : Community colleges: officers and employees
SOURCE : Chancellor's Office of the California Community
Colleges
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DIGEST : This bill permits specified members of the State
Teachers' Retirement System (STRS) and the Public
Employees' Retirement System (CalPERS) to move from one
system to the other, as their employment changes, upon
written notification within 60 days of the change. Applies
to job changes that occur on or after January 1, 1998.
Allows the Board of Governors of the Community Colleges and
a community college district or publicly funded community
college organization to enter into an agreement for the
loan or assignment of an employee to or from the
Chancellor's Office, in accordance with specified
conditions.
Senate Floor Amendments of 6/3/97 added language that would
provide that only employees who are nearly eligible to
retire will be able to stay in STRS if they move to certain
PERS-covered state employment, and vice-versa.
ANALYSIS : Sections 1, 2 and 4
Existing STRS law does not allow a STRS member performing
creditable service in a community college or school
district, who later accepts a position for any state
agency, to continue membership in STRS for service
performed with the state agency.
Likewise, existing PERS law does not allow a PERS member
employed by the Board of Governors of the Community
Colleges, who later accepts a position with a community
college, from continuing membership in PERS for service
performed with the community college district.
This bill specifies that a STRS member employed by a
community college district, school district, or county
superintendent's office, who subsequently is employed by a
state agency involved with educational policy, to perform
service subject to coverage by the Public Employees'
Retirement System, shall retain coverage by this plan for
that service if all of the following conditions are met:
1. The member becomes employed by any of the following
entities:
A. The State Department of Education.
B. The Community College Chancellor's office.
C. The California Postsecondary Education Commission.
D. The California Council on Private Postsecondary
Vocational Education.
E. The Commission on Teacher Credentialing.
F. The Student Aid Commission.
2.The member has the minimum number of years of credited
service required for eligibility to retire for service as
defined under existing law.
3.The time that will elapse between the date the member's
change in employment is effective and the date the member
reaches early retirement age is less than the time
required to accrue the minimum number of years of service
statutorily required for eligibility to retire for
service under the Public Employees' Retirement System.
4.An election to retain coverage under the Defined Benefit
Plan is submitted in writing by the member to the State
Teachers' Retirement System on a form prescribed by the
system, and a copy of the election is submitted to the
Public Employees' Retirement System, within 60 days of
the date the member's change in employment is effective.
Conversely, persons employed by the Board of Governors of
the community colleges (required to be members of CalPERS)
who move to jobs with a community college district
(required to be members of STRS) also would be permitted to
elect membership in the system of their choice in writing,
within 60 days of the job change.
These provisions would apply to job changes that occur on
or after January 1, 1998.
Section 3
Existing Education Code provisions permit the temporary
loan of employees under an interjurisdictional exchange.
This program, however, has limitations that are said to not
permit the flexibility sought by the Board of Governors in
retaining qualified and experienced individuals.
This bill would:
1. Permit the Board of Governors of the California
Community Colleges to enter into an agreement with any
district or publicly funded organization for the loan or
temporary assignment to the Board of Governors of a
person employed by any district or publicly funded
community college organization within the system.
2. Provide that the temporary assignment shall not exceed
two years, except that extension of an additional two
years shall be authorized when the Board of Governors
finds it necessary to meet a compelling program or
management need.
3. Provide that any temporary loan or assignment shall be
made only with the consent of the employee.
4. Provide that the Board of Governors may also enter into
an agreement with any community college district for the
loan or temporary assignment of an employee of the
chancellor's office to any community college district
within the system.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/3/97)
Chancellor's Office of the California Community Colleges
(source)
State Teachers Retirement System (STRS)
Community College League of California
OPPOSITION : (Verified 6/3/97)
Department of Personnel Administration
ARGUMENTS IN SUPPORT : The Senate Public Employment and
Retirement Committee was advised that this bill has been
introduced because of the difficulty experienced by the
California Community Colleges Chancellor's Office in
recruiting individuals with direct experience in the
community colleges to advise the Chancellor on matters of
policy in the community colleges.
STRS has stated that the bill would allow STRS members who
are subsequently employed in an eligible state agency to
elect to remain in STRS. In turn, eligible state agencies
would be better able to recruit qualified candidates for
positions that require a background in education.
ARGUMENTS IN OPPOSITION : The Department of Personnel
Administration states that "this bill would permit a STRS
member who accepts a state job subject to PERS membership
to circumvent the mandatory Second Tier provisions by
remaining in STRS. This exception would create an
inequity, as it relates to movement of employees between
reciprocal retirement systems, such as PERS and STRS. For
example, other public employees who are members of
reciprocal systems (such as the Legislators' Retirement
System, the University of California Retirement System, the
County Employees' Retirement Law of 1937 Systems, and
others) and who come to work for the state, would remain
subject to Second Tier coverage, whereas STRS members would
retain their coverage."
Department of Personnel Administration also states,
"Current provisions of law allow employers to enter into
interagency agreements for the loan of employees.
Employees who participate in these interagency loans retain
all their rights and benefits afforded through their
permanent employer. It is not known at this time why the
provisions of this bill to provide for employee exchanges
is necessary, but it would appear that this measure could
potentially exclude such contracts from the review by
central agencies, such as those required by the State
Personnel Board, the Department of General Services, and
the Department of Finance."
TSM:jk 6/4/97 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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