BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2233|
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CONSENT
Bill No: AB 2233
Author: Assembly Public Employees, Retirement & Social
Sec. Comm.
Amended: 6/8/04 in Senate
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 5-0, 6/21/04
AYES: Soto, Ashburn, Escutia, Karnette, Oller
ASSEMBLY FLOOR : 74-0, 5/17/04 (Passed on Consent) - See
last page for vote
SUBJECT : State teachers retirement
SOURCE : State Teachers Retirement System (STRS)
DIGEST : The bill makes various grammatical, technical
and conforming changes to the Teachers Retirement Law to
facilitate efficient administration of the State Teachers
Retirement Plan.
ANALYSIS : Existing law:
1.Establishes the Defined Benefit (DB) 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.
CONTINUED
AB 2233
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2
This 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 Two-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 California
Consumer Price Index 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/23/04)
State Teachers' Retirement System (source)
ARGUMENTS IN SUPPORT : According the STRS, this bill is
the annual technical "housekeeping" bill. This bill makes
various grammatical, technical and conforming changes to
AB 2233
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3
the STRS Law to facilitate efficient adminstration.
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Calderon, Campbell, Canciamilla, Chan, Chu, Cogdill,
Cohn, Corbett, Correa, Cox, Daucher, Diaz, Dutra, Dutton,
Dymally, Frommer, Garcia, Goldberg, Hancock, Harman,
Haynes, Jerome Horton, Shirley Horton, Houston, Jackson,
Keene, Kehoe, La Malfa, La Suer, Laird, Leno, Leslie,
Levine, Lieber, Liu, Longville, Lowenthal, Maddox,
Maldonado, Matthews, Maze, McCarthy, Mountjoy, Mullin,
Nakanishi, Nakano, Nation, Negrete McLeod, Pacheco,
Parra, Pavley, Plescia, Reyes, Richman, Ridley-Thomas,
Runner, Salinas, Samuelian, Simitian, Spitzer, Steinberg,
Strickland, Vargas, Wesson, Wiggins, Wyland, Yee, Nunez
NO VOTE RECORDED: Chavez, Firebaugh, Koretz, Montanez,
Oropeza, Wolk
TSM:nl 6/23/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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