BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2232
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 2232 (Public Employees Committee)
          As Amended April 15, 2004
          Majority vote 

           PUBLIC EMPLOYEES    7-2         APPROPRIATIONS      16-5        
           
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          |Ayes:|Negrete McLeod, Levine,   |Ayes:|Chu, Berg, Calderon,      |
          |     |Chan, Correa, Kehoe,      |     |Corbett, Correa,          |
          |     |Laird, Nakanishi          |     |Firebaugh, Goldberg,      |
          |     |                          |     |Leno, Nation, Negrete     |
          |     |                          |     |McLeod, Oropeza, Pavley,  |
          |     |                          |     |Ridley-Thomas, Wesson,    |
          |     |                          |     |Wiggins, Yee              |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Campbell, Maldonado       |Nays:|Runner, Bates, Daucher,   |
          |     |                          |     |Haynes, Keene             |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Allows California State Teachers' Retirement System  
          (CalSTRS) to adjust the current formula for calculating sick  
          leave for part-time community college faculty to service credit.  
           Specifically,  this bill  requires that service credit would be  
          calculated by dividing the number of accumulated leave days by  
          the greater of:

          1)The number of days of service required for that member's class  
            of employees in a school year; or, 

          2)The minimum number of days that comprise full-time service for  
            that member.

           EXISTING LAW  authorizes members of the Defined Benefit Program  
          of the State Teachers' Retirement Plan (Defined Benefit Program)  
          to receive service credit for accumulated and unused sick leave,  
          which service credit is calculated by dividing the number of  
          accumulated leave days by the greatest of: 

          1)The number of days of service required for that member's class  
            of employees in a school year; 

          2)The minimum number of days comprising full time for that  
            member; or, 








                                                                  AB 2232
                                                                  Page  2


          3)175 days.

           FISCAL EFFECT  :  Prospective increased costs when specified  
          faculty retire.  CalSTRS already assumes a major portion of the  
          costs (three-fifths) in its current conversion of sick leave to  
          service credit.

           COMMENTS  :  According to Faculty Association of Community  
          Colleges, part-time community college faculty struggle to vest  
          into the Defined Benefit Program because the Defined Benefit  
          Program is programmatically designed for career teachers.   
          Nonetheless, some career part-timers (approximately 21,150)  
          choose to participate in the Defined Benefit Program because it  
          provides them with the best monthly pension.  Upon retirement, a  
          full-time faculty member's sick leave is transferred into  
          service credit.  

          The formula CalSTRS uses to calculate the conversion from sick  
          leave to service credit for part-time faculty gives a part-time  
          faculty member approximately three-fifths of a day for every  
          full day of service credit they should be receiving (Education  
          Code 22717). 
          
          Part-time community college faculty deserve to have the full  
          service credit they are due for their sick leave.  Their status  
          as part-time faculty should not prohibit them from receiving  
          less service credit than full-time faculty members receive. 


           Analysis Prepared by :    Clem Meredith / P.E., R. & S.S. / (916)  
          319-3957 




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