BILL ANALYSIS SB 227 Date of Hearing: August 27, 1997 ASSEMBLY COMMITTEE ON APPROPRIATIONS Carole Migden, Chairwoman SB 227 (Solis) - As Amended: 8/25/97 Policy Committee: Higher Education Vote: 13 - 0 Urgency: No State Mandated Local Program: NoReimbursable: SUMMARY This bill authorizes specified members of the State Teachers' Retirement System (STRS) and the Public Employees Retirement System (PERS) to move from one system to another, and establishes standards for those moves. More specifically, the bill: 1 Authorizes employees of community college districts (required to be members of STRS), who are subsequently hired by the Board of Governors of the California Community Colleges (BOG), to elect to remain in the STRS system, as specified. This would apply to changes in employment effective on or after January 1, 1998. 2. Authorizes a PERS member employed by the BOG, who is subsequently employed by a community college district, to have their community college service credited to their PERS account. This would apply to changes in employment effective on or after January 1, 1998. 3. Authorizes a PERS member who changed employment, as specified, to return to STRS coverage on or before March 1, 1998. PERS is required to transfer the actuarial present value to the assets of the person who elects to return to STRS. The bill specifies that PERS is not required to identify and notify members who may be eligible for this option. 4. Authorizes the BOG and a community college district or a publicly funded organization within the community college system to enter into an agreement, of up to two years, in order to loan or temporarily assign an employee between the entities, as specified. This agreement may be extended for an additional two years if a compelling need arises. FISCAL EFFECT Minor, if any, additional GF costs. The bill would result in - continued - SB 227 Page 1 SB 227 minimal program and administrative costs due to the limited number of members this bill would impact. Any administrative costs would be paid by investment returns as required under existing law. - continued - SB 227 Page 2