BILL ANALYSIS
AB 2233
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CONCURRENCE IN SENATE AMENDMENTS
AB 2233 (Public Employees Committee)
As Amended August 23, 2004
Majority vote
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|ASSEMBLY: |74-0 |(May 17, 2004) |SENATE: |22-12|(August 24, |
| | | | | |2004) |
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Original Committee Reference: P.E.,R & S.S.
SUMMARY : Makes technical non-substantive changes to Teachers'
Retirement Law (TRL).
The Senate amendments :
1)Clarifies the parties that are eligible for survivor benefits
under the Defined Benefit (DB) Plan and the Cash Balance (CB)
Plan of the State Teachers Retirement System (CalSTRS).
2)Eliminate the requirement that two witness signatures are
required for a beneficiary designation.
3)Specifies that an election for certain programs which allow a
lump sum payment and reduced monthly allowances must result in
no net actuarial impact to the program.
4)Makes other technical and clarifying changes.
EXISTING LAW :
1)Establishes the DB Plan 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.
AS PASSED BY THE ASSEMBLY , this bill:
1)Made technical changes to various provisions of that law.
2)Declared that any act that amends or repeals any of the
sections amended by this act shall prevail over this act.
AB 2233
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FISCAL EFFECT : None
COMMENTS : According to CalSTRS, Assembly Bill 2233 is the
annual technical "housekeeping" bill. This bill makes various
grammatical, technical and conforming changes to TRL to
facilitate efficient administration of the State Teachers'
Retirement Plan (Plan), which includes the DB Plan, the Defined
Benefit Supplement (DBS) Program, and the CB Plan.
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 Plan.
3)Eliminates the text "age and" to clarify that only additional
service credit is granted to DB Plan 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 Plan.
5)Eliminates the term "annual" in order to allow CalSTRS 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 Plan.
7)Clarifies the authority of the Teachers' Retirement Board to
set the employer contribution rate as a plan amendment.
Analysis Prepared by : Clem Meredith / P.E., R. & S.S. / (916)
319-3957
FN: 0008786
AB 2233
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