BILL ANALYSIS
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THIRD READING
Bill No: AB 1852
Author: Mullin (D)
Amended: 8/17/04 in Senate
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 3-2, 6/14/04
AYES: Soto, Escutia, Karnette
NOES: Ashburn, Oller
SENATE APPROPRIATIONS COMMITTEE : 12-0, 8/12/04
AYES: Alpert, Battin, Aanestad, Ashburn, Bowen, Escutia,
Johnson, Karnette, Machado, Murray, Poochigian, Speier
NO VOTE RECORDED: Burton
ASSEMBLY FLOOR : 70-6, 5/25/04 - See last page for vote
SUBJECT : State teachers retirement
SOURCE : California Teachers Association
DIGEST : This bill eliminates the minimum age requirement
for qualified members of the State Teachers Retirement
System to receive an earned longevity bonus as a lump sum
payment. Appropriates $53,000 from the Teachers'
Retirement fund for administrative expenses.
ANALYSIS :
Expansion of Eligibility for Lump Sum Payment of the STRS
"Longevity Bonuses."
CONTINUED
AB 1852
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Existing STRS law (1) provides most STRs members with a
"longevity bonus" ($200, $300 or $400 per month for
teaching to 30, 31, or 32 years, respectively) added to
their monthly STRS allowance, and (2) authorizes these STRS
members who are 60 years and three months old at the time
of retirement to receive a specified lump-sump payment upon
retirement and an actuarially reduced monthly allowance if
they retire before July 1, 2011.
This bill removes the age 60 years and three months age
requirement for choosing the lump-sum payment option and
authorizes most STRS members who retire with 30 or more
years of service, in lieu of a monthly "longevity bonus,"
to receive a lump-sump payment at retirement of the lesser
of the actuarial value of the "longevity bonus" or 15
percent of the actuarial value of the benefit.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2004-05 2005-06
2006-07 Fund
Admin costs $53* $0
$0 TRF
*Appropriated in bill.
SUPPORT : (Verified 8/12/04)
California Teachers Association (source)
California Federation of Teachers
Faculty Association of California Community Colleges
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Berg, Bermudez, Bogh, Calderon,
Campbell, Canciamilla, Chan, Chavez, Chu, Cohn, Corbett,
Correa, Cox, Daucher, Diaz, Dutra, Dutton, Dymally,
Firebaugh, Frommer, Goldberg, Hancock, Jerome Horton,
Shirley Horton, Jackson, Keene, Kehoe, Koretz, La Malfa,
Laird, Leno, Levine, Lieber, Liu, Longville, Lowenthal,
AB 1852
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Maddox, Maldonado, Matthews, McCarthy, Montanez,
Mountjoy, Mullin, Nakanishi, Nakano, Nation, Negrete
McLeod, Oropeza, Parra, Pavley, Plescia, Reyes, Richman,
Ridley-Thomas, Runner, Salinas, Samuelian, Simitian,
Spitzer, Steinberg, Strickland, Vargas, Wesson, Wiggins,
Wolk, Wyland, Yee, Nunez
NOES: Garcia, Harman, Haynes, Houston, La Suer, Maze
NO VOTE RECORDED: Benoit, Cogdill, Leslie, Pacheco
TSM:cm 8/17/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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