BILL ANALYSIS
AB 2233
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Date of Hearing: May 5, 2004
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Gloria Negrete McLeod, Chair
AB 2233 (P.E.,R.&S.S. Com.) - As Introduced: February 18, 2004
SUBJECT : State teachers' retirement.
SUMMARY : Makes technical non-substantive changes to Teachers'
Retirement Law.
Specifically, this bill :
1)Makes technical changes to various provisions of that law.
2)Declares that any act that amends or repeals any of the
sections amended by this act shall prevail over this act.
EXISTING LAW
1)Establishes the Defined Benefit Program of the State Teachers'
Retirement Plan.
2)Requires the governing board of a school district to grant an
employee a leave of absence to enable the employee to serve as
an elected officer of an employee organization.
FISCAL EFFECT : None
COMMENTS :
This bill is sponsored by CalSTRS and does not contain all of
the provisions that will ultimately complete the bill.
According to the sponsor those provisions will be added in the
Senate.
Arguments in Support
According to CalSTRS, Assembly Bill 2233 is the annual
California State Teachers' Retirement System (CalSTRS) technical
"housekeeping" bill. The bill makes various grammatical,
technical and conforming changes to the Teachers' Retirement Law
(TRL) to facilitate efficient administration of the State
Teachers' Retirement Plan (Plan), which includes the Defined
Benefit (DB) Program, the Defined Benefit Supplement (DBS)
AB 2233
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Program, and the Cash Balance (CB) Benefit Program.
Specifically, the bill:
1. Adds the term "spouse" to clarify the nonmember spouse
payment requirements for purchasing additional service
credit;
2. Adds the term "Employees'" to clarify service performed
under the San Francisco City and County Employees'
Retirement System is excluded under the CalSTRS DB Program;
3. Eliminates the text "age and" to clarify that only
additional service credit is granted to DB Program members
under the 2-Year Retirement Incentive Program;
4. Replaces the text "purchase additional service credit"
with "redeposit refunded accumulated retirement
contributions" to clarify redeposit conditions under the DB
Program;
5. Eliminates the term "annual" in order to allow the
System to issue the earnings limit in advance of the
calendar year for which it is effective by using the CCPI
from the immediately preceding June;
6. Replaces the term "allowance" with "benefit" to clarify
the actuarial reduction applied to the retirement benefit
when a member elects the Partial Lump Sum under the DB
Program;
7. Clarifies the authority of the Teachers' Retirement
Board (Board) to set the employer contribution rate as a
plan amendment.
REGISTERED SUPPORT / OPPOSITION :
Support
State Teachers' Retirement System (CalSTRS), Sponsor
Opposition
None on file
Analysis Prepared by : Clem Meredith / P.E., R. & S.S. / (916)
319-3957