BILL NUMBER: AB 2554 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Pavley
(Coauthor: Assembly Member Levine)
(Coauthor: Senator Karnette)
FEBRUARY 20, 2004
An act to amend Section 22461 of, to amend and repeal Section
24214 of, and to repeal Sections 24216, 24216.5, and 24216.6 of, the
Education Code, relating to state teachers' retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 2554, as introduced, Pavley. State teachers' retirement:
post-retirement earnings.
Under existing law, the service retirement allowance of a retired
member of the Defined Benefit Program of the Teachers' Retirement
Plan is reduced if the member's postretirement compensation from
specified activities exceeds a certain dollar amount, except in
specified circumstances.
This bill would eliminate that postretirement earnings limitation.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22461 of the Education Code is amended to read:
22461. (a) Upon retaining the services of a retired member under
Section 24116 , 24214, or 24215, the
school district, community college district, county superintendent of
schools, California State University , or other
employing agency shall do both of the following regardless
of whether the retired member performs the services as an employee of
the employer, an employee of a third party, or an independent
contractor:
(1) Advise the retired member of the earnings limitation set forth
in Sections 24116 , 24214, and 24215.
(2) Maintain accurate records of the retired member's earnings and
report those earnings monthly to the system and the retired member
regardless of the method of payment or the fund from which the
payments were made.
(b) This section shall may not be
construed to make any school district, community college
district, county superintendent of schools, the California
State University , or other employing agency
liable for any amount paid to the retired member in excess of the
earnings limitation under any circumstance, including the failure to
inform the retired member that continuation of service would exceed
the limitations limitation .
SEC. 2. Section 24214 of the Education Code, as amended by Section
21 of Chapter 859 of the Statutes of 2003, is amended to read:
24214. (a) A member retired for service under this part may
perform the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
as an employee of an employer, as an employee of a third party, or
as an independent contractor within the California public school
system, but the member may not make contributions `to
to the retirement fund or accrue service credit
based on compensation earned from that service.
(b) The rate of pay for service performed by a member retired for
service under this part as an employee of the employer may not be
less than the minimum, nor exceed that paid by the employer to other
employees performing comparable duties.
(c) A member retired for service under this part may not be
required to reinstate for performing the activities identified in
paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision
(b), of Section 22119.5, as an employee of an employer, as an
employee of a third party, or as an independent contractor within the
California public school system.
(d) A member retired for service under this part may earn
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in any one school year up to the limitation
specified in subdivision (f) as an employee of an employer,
as an employee of a third party, or an independent contractor,
within the California public school system, without a reduction in
his or her retirement allowance.
(e) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of the activities described in subdivision (a) for
which the employer is not eligible to receive state apportionment or
to compensation that is not creditable pursuant to Section 22119.2.
(f) The limitation that shall apply to the compensation for
performance of the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
by a member retired for service under this part either as an
employee of an employer, an employee of a third party, or as an
independent contractor, shall, in any one school year, be an amount
calculated by the board each July 1 equal to twenty-two thousand
dollars ($22,000) multiplied by the percentage increase in the
average compensation earnable of active members of the Defined
Benefit Program, as determined by the system, from the 1998-99 fiscal
year to the fiscal year ending in the previous calendar year.
(g) If a member retired for service under this part earns
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in excess of the limitation specified in subdivision (f), as
an employee of an employer, as an employee of a third party, or as
an independent contractor, within the California public school
system, the member's retirement allowance shall be reduced by the
amount of the excess compensation. The amount of the reduction may
be equal to the monthly allowance payable but may not exceed the
amount of the annual allowance payable under this part for the fiscal
year in which the excess compensation was earned.
(h) The language of this section derived from the amendments to
the section of this number added by Chapter 394 of the Statutes of
1995, enacted during the 1995-96 Regular Session, is deemed to have
become operative on July 1, 1996.
(i) This section shall become operative on January 1, 2008.
SEC. 3. Section 24214 of the Education Code, as amended by Section
2 of Chapter 903 of the Statutes of 2002, is repealed.
24214. (a) A member retired for service under this part may
perform the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
as an employee of an employer, as an employee of a third party, or
as an independent contractor within the California public school
system, but the member may not make contributions to the retirement
fund or accrue service credit based on compensation earned from that
service.
(b) The rate of pay for service performed by a member retired for
service under this part as an employee of the employer may not be
less than the minimum, nor exceed that paid by the employer to other
employees performing comparable duties.
(c) A member retired for service under this part may not be
required to reinstate for performing the activities identified in
paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision
(b), of Section 22119.5, as an employee of an employer, as an
employee of a third party, or as an independent contractor within the
California public school system.
(d) A member retired for service under this part may earn
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in any one school year up to the limitation specified in
subdivision (f) as an employee of an employer, as an employee of a
third party, or an independent contractor, within the California
public school system, without a reduction in his or her retirement
allowance.
(e) (1) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned by a
member retired for service under this part who has returned to work
after the date of retirement and, for a period of at least 12
consecutive months, has not performed the activities identified in
paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision
(b), of Section 22119.5 as an employee of an employer, as an employee
of a third party, or as an independent contractor within the
California public school system.
(2) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of the activities described in subdivision (a) for
which the employer is not eligible to receive state apportionment or
to compensation that is not creditable pursuant to Section 22119.2.
(f) The limitation that shall apply to the compensation for
performance of the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
by a member retired for service under this part either as an
employee of an employer, an employee of a third party, or as an
independent contractor, shall, in any one school year, be an amount
calculated by the board each July 1 equal to twenty-two thousand
dollars ($22,000) multiplied by the percentage increase in the
average earnable salary of active members of the Defined Benefit
Program, as determined by the system, from the 1998-99 fiscal year to
the fiscal year ending in the previous calendar year.
(g) If a member retired for service under this part earns
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in excess of the limitation specified in subdivision (f), as
an employee of an employer, as an employee of a third party, or as
an independent contractor, within the California public school
system, and if that compensation is not exempt from that limitation
under subdivision (e) or any other provisions of law, the member's
retirement allowance shall be reduced by the amount of the excess
compensation. The amount of the reduction may be equal to the
monthly allowance payable but shall not exceed the amount of the
annual allowance payable under this part for the fiscal year in which
the excess compensation was earned.
(h) The amendments to this section enacted during the 1995-96
Regular Session shall be deemed to have become operative on July 1,
1996.
(i) This section shall be repealed on January 1, 2008, unless
later enacted legislation extends or deletes that date.
SEC. 4. Section 24216 of the Education Code is repealed.
24216. (a) (1) A member retired for service under this part who
is appointed as a trustee or administrator by the Superintendent of
Public Instruction pursuant to Section 41320.1, or a member retired
for service who is assigned by a county superintendent of schools
pursuant to Article 2 (commencing with Section 42120) of Chapter 6 of
Part 24, shall be exempt from subdivisions (d) and (f) of Section
24214 for a maximum period of two years.
(2) The period of exemption shall commence on the date the member
retired for service is appointed or assigned and shall end no more
than two calendar years from that date, after which the limitation
specified in subdivisions (d) and (f) of Section 24214 shall apply.
(3) An exemption under this subdivision shall be granted by the
system providing that the Superintendent of Public Instruction or the
county superintendent of schools submits documentation required by
the system to substantiate the eligibility of the member retired for
service for an exemption under this subdivision.
(b) (1) A member retired for service under this part who is
employed by an employer to perform creditable service in an emergency
situation to fill a vacant administrative position requiring highly
specialized skills shall be exempt from the provisions of
subdivisions (d) and (f) of Section 24214 for creditable service
performed up to one-half of the full-time equivalent for that
position, if the vacancy occurred due to circumstances beyond the
control of the employer. The limitation specified in subdivisions
(d) and (f) of Section 24214 shall apply to creditable service
performed beyond the specified exemption.
(2) An exemption under this subdivision shall be granted by the
system subject to the following conditions:
(A) The recruitment process to fill the vacancy on a permanent
basis is expected to extend over several months.
(B) The employment is reported in a public meeting of the
governing body of the employer.
(C) The employer submits documentation required by the system to
substantiate the eligibility of the member retired for service for an
exemption under this subdivision.
(c) This section does not apply to any person who has received
additional service credit pursuant to Section 22715 or 22716.
(d) A person who has received additional service credit pursuant
to Section 22714 or 22714.5 shall be ineligible for one year from the
effective date of retirement for the exemption provided in this
section for service performed in the district from which he or she
retired.
(e) This section shall become operative on January 1, 2001, and
shall remain in effect only until January 1, 2008, and as of that
date is repealed, unless a later enacted statute, which is enacted
before January 1, 2008, deletes or extends that date.
SEC. 5. Section 24216.5 of the Education Code is repealed.
24216.5. (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:
(1) The member retired for service with an effective date on or
before January 1, 2000.
(2) The member retired for service is employed by a school
district to provide any of the following:
(A) Direct classroom instruction to pupils enrolled in
kindergarten or any grades 1 to 12, inclusive.
(B) Support and assessment for new teachers through the Beginning
Teacher Support and Assessment program authorized by Section 44279.1.
(C) Support to individuals completing student teaching
assignments.
(D) Support to individuals participating in the following
programs:
(i) Pre-Internship Teaching Program authorized pursuant to Article
5.6 (commencing with Section 44305) of Chapter 2 of Part 25.
(ii) Alternative certification programs authorized pursuant to
Article 11 (commencing with Section 44380) of Chapter 2 of Part 25.
(iii) School Paraprofessional Teacher Training Program established
pursuant to Article 12 (commencing with Section 44390) of Chapter 2
of Part 25.
(3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service shall not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
(4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision.
(b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
(c) This section shall not apply to the compensation earned for
creditable service performed by a member retired for service for a
community college district.
(d) The amendments made to this section by an act enacted in the
second year of the 1999-2000 Regular Session shall apply to the
2000-01 school year and all subsequent school years.
(e) This section shall remain in effect only until July 1, 2005,
and as of that date is repealed unless a later enacted statute which
is enacted before July 1, 2005, deletes or extends that date.
SEC. 6. Section 24216.6 of the Education Code is repealed.
24216.6. (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:
(1) The member retired for service with an effective date on or
before July 1, 2000.
(2) The member retired for service is employed by a school
district to provide direct remedial instruction to pupils in grades 2
to 12, inclusive. "Remedial instruction" means the programs
specified in Sections 37252 and 37252.2.
(3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service may not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
(4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision.
(b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
(c) This section does not apply to the compensation earned for
creditable service performed by a member retired for service for a
county office of education or a community college district.