BILL ANALYSIS
AB 2554
Page 1
Date of Hearing: March 31, 2004
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Gloria Negrete McLeod, Chair
AB 2554 (Pavley) - As Amended: March 24, 2004
SUBJECT : State Teachers' Retirement: Post-Retirement Earnings
SUMMARY : Modifies the exemptions to the post-retirement
earnings limitation for certain teaching positions.
Specifically, this bill :
1)Limits the period of the exemption for administrative
positions to not more than 2 years after the date the retired
member is appointed or assigned to that position.
2)Extends the sunset on the exemptions until January 1, 2008,
would expand it to apply to service performed by members who
retired for service on or before January 1, 2004.
3)Expands the list of types of service subject to the exemption
to include instruction and services provided to pupils in
special education programs and English language learner
programs.
4)Expands the exemption for direct remedial instruction
positions to apply to those services performed by members who
retired for service on or before July 1, 2004.
EXISTING LAW
1)Reduces the service retirement allowance of a retired member
of the Defined Benefit Program of the Teachers' Retirement
Plan if the member's post-retirement compensation from
specified activities exceeds a certain dollar amount, except
in specified circumstances.
2)Exempts from that earnings limitation, until January 1, 2008,
service performed in an emergency situation in certain vacant
administrative positions for up to 1/2 of the full-time
equivalent for that position, if certain conditions are met.
3)Exempts from the earnings limitation, until July 1, 2005, any
of a list of specified types of service performed by members
AB 2554
Page 2
who retired for service on or before January 1, 2000, if
certain conditions were met.
4)Exempts from the earnings limitation direct remedial
instruction, as specified, performed by retired members who
retired for service on or before July 1, 2000.
FISCAL EFFECT : Costs for use of retired teachers should be less
than the cost of hiring new full time teachers under contract.
COMMENTS : According to the Los Angeles Unified School District
(sponsor), AB 2554 would amend current law to exempt special
education and English Language Learner (ELL) teachers, who are
retirees, from the earnings limit of the State Teachers'
Retirement System (STRS). There are currently seven exemptions
to the compensation limit.
Given the present shortage of "highly qualified" teachers and
the requirement of the federal No Child Left Behind Act (NCLB),
districts are concerned about the possibility of a number of
certified employees retiring en masse, leaving a void of "highly
qualified" teachers and with no way to staff vacant positions.
AB 2554 is an important tool that districts will be able to use
when recruiting former educators and staff to meet the ongoing
demand for experienced, knowledgeable teachers.
Removing the earnings limit will allow greater flexibility when
utilizing retired certificated employees to fill vacancies,
especially in specialty credential areas such as special
education and English language learner programs that are not
included in the exemptions list. In addition, this proposal
makes various technical and clarifying changes to provide
consistency amongst the various statutes that provide exemptions
to the compensation limits.
REGISTERED SUPPORT / OPPOSITION :
Support
California Federation of Teachers
Los Angeles Unified School District (Sponsor)
Opposition
None on file
AB 2554
Page 3
Analysis Prepared by : Clem Meredith / P.E., R. & S.S. / (916)
319-3957