BILL NUMBER: SB 713 CHAPTERED 10/10/99 CHAPTER 632 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 5, 1999 PASSED THE SENATE SEPTEMBER 10, 1999 PASSED THE ASSEMBLY SEPTEMBER 10, 1999 AMENDED IN ASSEMBLY SEPTEMBER 10, 1999 AMENDED IN ASSEMBLY SEPTEMBER 7, 1999 AMENDED IN ASSEMBLY SEPTEMBER 2, 1999 INTRODUCED BY Senator Burton FEBRUARY 24, 1999 An act to add Section 24410.5 to the Education Code, relating to the State Teachers' Retirement System, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST SB 713, Burton. State Teachers' Retirement System: benefits. Under the State Teachers' Retirement Law, retired members, option beneficiaries, and surviving spouses of the Defined Benefit Program, as defined, receive monthly allowances that are subject to supplementary increases to preserve their purchasing power, as specified. This bill would establish minimum annual allowance amounts payable to specified retired members, option beneficiaries, and surviving spouses, which amounts would vary according to the member's years of credited service, subject to specified exclusions and exceptions. The bill would appropriate $750,000 from the Teacher's Retirement Fund to pay the administrative costs of implementing these provisions. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 24410.5 is added to the Education Code, to read: 24410.5. (a) Notwithstanding any provision of this part, including, but not limited to, subdivision (e) of Section 22664, the annual allowance payable on the effective date of this section to a retired member, an option beneficiary, or a surviving spouse receiving an allowance pursuant to either Section 23805 or 23855 shall not be less than the amount identified in the following schedule for the number of years of the member's credited service under the Defined Benefit Program at the time of the member's retirement, disability, or death, excluding service credited pursuant to Sections 22714, 22715, 22717 and 22826, after the application of all allowances and allowance increases authorized by this part, including those specified in Sections 24412 and 24415, as those sections read on December 31, 1999, excluding annuities payable from the accumulated annuity deposit contributions or the accumulated tax-sheltered annuity contributions, and excluding those provided pursuant to Section 24410.7: 20 years of credited service .............. $15,000 21 years of credited service .............. $15,500 22 years of credited service .............. $16,000 23 years of credited service .............. $16,500 24 years of credited service .............. $17,000 25 years of credited service .............. $17,500 26 years of credited service .............. $18,000 27 years of credited service .............. $18,500 28 years of credited service .............. $19,000 29 years of credited service .............. $19,500 30 years or more of credited service ...... $20,000 (b) Notwithstanding subdivision (a), the amount identified in the schedule in subdivision (a) shall be reduced: (1) By 50 percent for a beneficiary receiving an allowance under Option 3 or Option 7. (2) By one-third for an option beneficiary receiving an allowance under Option 4 after the death of the member or for a member receiving an allowance under Option 4 after the death of the option beneficiary. (3) By 50 percent for an option beneficiary receiving an allowance under Option 5 after the death of the member or for a member receiving an allowance under Option 5 after the death of the option beneficiary. (4) By a percentage equal to 100 percent minus the percentage of the member's modified allowance received by the option beneficiary for each option beneficiary receiving an allowance under Option 8. (5) By 60 percent for a surviving spouse receiving an allowance pursuant to subdivision (a) of Section 23805. (6) By 50 percent for a surviving spouse receiving an allowance pursuant to subdivision (c) of Section 23805 or Section 23855. (c) A member to whom a disability allowance is payable on January 1, 2000, who subsequently receives a service retirement allowance pursuant to Section 24213 shall, upon the retirement for service, receive an increase in the service retirement allowance pursuant to this section. (d) A member, beneficiary, or surviving spouse may receive an allowance pursuant to this section only if the member was an active member at the time of the member's retirement, or death and, for those members who retired for service, the member retired on or after age 55, unless the member's allowance was not subject to a reduction due to retirement prior to an age specified in this part. (e) A retired member, option beneficiary, or surviving spouse subject to this section shall receive the annual minimum allowance pursuant to this section unless the system receives in writing, on a form prescribed by the system, notification from the member, option beneficiary, or surviving spouse before May 1, 2000, of his or her election not to receive the increase provided under this section. (f) Benefits payable under this section shall be initially paid by the system on July 1, 2000. SEC. 2. There is hereby appropriated the sum of seven hundred fifty thousand dollars ($750,000) from the Teachers' Retirement Fund to the Teachers' Retirement Board for the payment of the administrative costs of implementing the provisions of Section 1 of this act.