BILL ANALYSIS
AB 2554
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CONCURRENCE IN SENATE AMENDMENTS
AB 2554 (Pavley)
As Amended July 27, 2004
Majority vote
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|ASSEMBLY: |78-1 |(May 25, 2004) |SENATE: |25-2 |(August 11, |
| | | | | |2004) |
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Original Committee Reference: P.E.,R.&S.S.
SUMMARY : Modifies the exemptions to the post-retirement
earnings limitation for certain teaching positions.
The Senate amendments are technical and double-joining to AB
2753 (Corbett).
EXISTING LAW :
1)Reduces the service retirement allowance of a retired member
of the Defined Benefit Program of the State 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 one-half 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
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 from service on or before July 1, 2000.
AS PASSED BY THE ASSEMBLY , this bill:
1)Limited the period of the exemption for administrative
positions to not more than two years after the
date the retired member is appointed or assigned to that
AB 2554
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position.
2)Extended the sunset on the exemptions until January 1, 2008,
and would expand it to apply to service performed by members
who retired from service on or before January 1, 2004.
3)Expanded 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 (ELL)
programs.
4)Expanded the exemption for direct remedial instruction
positions to apply to those services performed by members who
retired from service on or before July 1, 2004.
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 sponsor, the Los Angeles Unified
School District, "this bill 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.
This bill 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."
Analysis Prepared by : Clem Meredith / P.E., R. & S.S. / (916)
AB 2554
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319-3957
FN: 0007461