BILL NUMBER: SB 1027	AMENDED
	BILL TEXT

	AMENDED IN SENATE   MAY 14, 1997

INTRODUCED BY  Senator Schiff

                        FEBRUARY 27, 1997

   An act to amend Sections 23200 and 23202 of  , and to add
Section 22811 to,  the Education Code, relating to school
employees.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1027, as amended, Schiff.  School employees retirement.
   The State Teachers' Retirement System authorizes members to
redeposit refunded contributions.
   The bill would authorize members to redeposit contributions
withdrawn by nonmember spouses.  
   Existing law authorizes credit for service prior to July 1, 1944,
in other states.
   This bill would authorize purchases of additional service credit
for out-of-state public school employment without any date
restriction. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.   Section 22811 is added to the Education Code, to
read:
   22811.  (a) A member, other than a retired member, may elect to
purchase additional service credit for employment with a public
school system in another state or territory of the United States or
by the United States for its citizens under the following conditions:

   (1) The out-of-state service shall have been in a position that in
this state would qualify for membership in this system.
   (2) In no event shall the member receive credit for this service
if the member has received or is eligible to receive credit for the
same service in another retirement system.
   (b) The amount of additional service credit that may be purchased
may not exceed the lesser of the number of years of service credit
the member has in the out-of-state retirement system or 10 years.
   (c) Additional service credit may be purchased under this section
by either of the following:
   (1) Depositing contributions for each year of service claimed up
to the limits established in subdivision (b), or amounts in
accordance with Section 22801.
   (2) Depositing contributions in accordance with Section 22801 and
receiving the number of years of service credit the total amount of
contributions will purchase up to the limits established in
subdivision (b).
   (d) A member who transfers contributions under subdivision (c) may
not transfer contributions qualifying under Section 403(b) of the
Internal Revenue Code.
   (e) Contributions for additional service credit purchased shall
not be used in calculating highest average annual compensation when
calculating final compensation.
  SEC. 2.   Section 23200 of the Education Code is amended to
read:
   23200.  (a) If a person, whose accumulated retirement
contributions have been refunded, again becomes a member of the plan,
the person may elect to redeposit those contributions with regular
interest from the date of refund to the date of payment.  If the
member elects to redeposit, the member shall repay all accumulated
retirement contributions that were previously refunded.
   (b) For time prior to July 1, 1944, regular interest shall be at
21/2 percent compounded annually.
   (c) If a nonmember spouse, as defined in Section 22651, withdraws
accumulated contributions in accordance with Section 22661, the
member may redeposit a sum equal to those contributions pursuant to
subdivision (a), providing he or she is not receiving an allowance
under Chapter 26 (commencing with Section 24100) or Chapter 27
(commencing with Section 24201).   
  SEC. 2.  
  SEC. 3.  Section 23202 of the Education Code is amended to
read:
   23202.  (a) An election pursuant to Section 23200 to redeposit
accumulated retirement contributions may be made by a member anytime
prior to the effective date of the member's retirement.
   (b) An election to redeposit refunded accumulated retirement
contributions shall be considered as an election to repay all
accumulated retirement contributions previously refunded under the
provision of this chapter.
   (c) If any payment due because of this election is not received at
the system's office in Sacramento within 120 days of its due date,
the election shall be canceled.  Upon the cancellation of election
any payments made under the election shall be refunded.
   (d) If the election is cancelled, the member may at any time prior
to the effective date of retirement, again elect to redeposit
accumulated retirement contributions previously withdrawn or
refunded, in accordance with Section 23200 and all the laws, rules,
and regulations pertaining thereto.