BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2233|
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THIRD READING
Bill No: AB 2233
Author: Assembly Public Employees, Retirement & Social
Sec. Comm.
Amended: 8/23/04 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
DIGEST : This bill is the annual State Teachers
Retirement System technical housekeeping bill, making
various grammatical, technical and conforming changes to
the Teachers Retirement Law to facilitate efficient
administration of the State Teachers' Retirement Plan.
Senate Floor Amendments of 8/19/04 (1) add to the
definition of "nonmember spouse" a member's registered
domestic partner or former registered domestic partner, and
(2) make other technical changes.
Senate Floor Amendments of 8/17/04 make a variety of
clarifying changes as follows:
1. Sections 22134 and 22134.5 of the Education Code are
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amended to delete the term "concurrently" and add text
to clarify concurrent retirement in determining final
compensation under the Defined Benefit Program.
Section 22134.5 additionally deletes redundant text
that refers to the compensation earnable for purposes
of determining final compensation for a Family
Allowance.
2. Section 22135 of the Education Code is amended to add
the term "average" to clarify the definition of final
compensation under the Defined Benefit Program.
3. Section 22171 of the Education Code is amended to
delete and add text to clarify the definition of a
spouse and to include registered domestic partners, for
the purpose of receiving Survivor Benefits.
4. Section 24114 of the Education Code is amended to
delete the text "retired for disability" and replace
with "receiving a disability retirement benefit" to
clarify the earnings limitation criteria under
Disability Retirement.
5. Section 24203.6 of the Education Code is amended to
delete Section 24209.5 that is a fictitious section
reference and replace with the section references 24209
and 24209.3 for purposes of determining eligibility for
the longevity bonus.
6. Section 24204 of the Education Code is amended to add
language to codify current practices for the
cancellation of a Service Retirement application.
7. Sections 24209.3, 24211, 24212, and 24213 of the
Education Code are amended to add Chapter 19 (the
purchase of redeposits) to sections that currently
include permissive and out-of-state service. Section
24209.3 is also amended to delete the term "retirement"
and replace with "allowance" to clarify the calculation
of the member's Service Retirement benefit after
Reinstatement.
8. Sections 25100 and 25107 of the Education Code are
amended to clarify investment options under the 403(b)
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investment vendor registration product.
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.
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 State Teachers'
Retirement System (STRS) 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.
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7.Clarifies the authority of the Teachers' Retirement Board
to set the employer contribution rate as a plan
amendment.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/20/04)
State Teachers' Retirement System (source)
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 8/22/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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