BILL ANALYSIS
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THIRD READING
Bill No: AB 2554
Author: Pavley (D), et al
Amended: 8/12/04 in Senate
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 5-0, 6/21/04
AYES: Soto, Ashburn, Escutia, Karnette, Oller
SENATE APPROPRIATIONS COMMITTEE : 9-0, 8/4/04
AYES: Alpert, Battin, Ashburn, Bowen, Escutia, Karnette,
Machado, Murray, Speier
NO VOTE RECORDED: Aanestad, Burton, Johnson, Poochigian
ASSEMBLY FLOOR : 78-1, 5/25/04 - See last page for vote
SUBJECT : State teachers retirement: postretirement
earnings
SOURCE : Los Angeles Unified School District
DIGEST : This bill modifies the existing State Teachers
Retirement System exemptions to the post-retirement
earnings limitation for certain teaching positions, and
extends the sunset of the program from July 1, 2005 to
January 1, 2008.
Senate Floor Amendments of 8/12/04 provide that the State
Teachers' Retirement System member must have retired before
January 1, 2004, in order to be eligible for the
post-retirement earnings exemptions provided by this bill.
CONTINUED
AB 2554
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ANALYSIS :
Existing State Teachers' Retirement System (STRS) Law
1.Reduces the STRS monthly service retirement allowance of
a retired member if the STRS member's post-retirement
compensation from working in a STRS-covered employment
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.
3.Exempts from the earnings limitation, until January 1,
2005, any of a list of certain types of teaching service
performed by STRS members who retired before January 1,
2000.
4.Exempts from the earnings limitation direct remedial
instruction performed by retired STRS members who retired
for service on or before July 1, 2000.
This bill:
1.Limits the period of the exemption for administrative
positions to not more than two years after the date the
retired STRS member is appointed or assigned to that
position.
2.Extends the sunset on the exemptions until January 1,
2008, and expands 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 STRS-covered service subject
to the exemption to include instruction and services
provided to pupils in special education programs and
English language learner programs.
4.Expands that exemptions for direct or remedial
instruction positions to apply to those services
performed by members who retired for service on or before
AB 2554
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January 1, 2004.
The bill also incorporates additional changes to Section
24216 of the Education Code proposed by AB 2753, contingent
upon the prior enactment of that bill.
Comments
According to the Los Angeles Unified School District, this
bill amends current law to exempt special education and
English Language Learner (ELL) teachers, who are retirees,
from the STRS post-retirement earnings limit. There are
currently seven exemptions tot he STRS post-retirement
earnings limit.
Given the present shortage of "highly qualified" teachers
and the requirement of the federal No Child Left Behind
Act, 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 exemption 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2004-05 2005-06
2006-07 Fund
Earnings limit extension -- approximately $100
annually -- TRF
AB 2554
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SUPPORT : (Verified 8/13/04)
Los Angeles Unified School District (source)
California Federation of Teachers
State Teachers' Retirement System
California Teachers Association
California Language Teachers Association
California Retired Teachers Association
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Calderon, Campbell, Canciamilla, Chan, Chavez, Chu,
Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz,
Dutra, Dutton, Dymally, Firebaugh, Frommer, Garcia,
Goldberg, Hancock, Harman, Jerome Horton, Shirley Horton,
Houston, Jackson, Keene, Kehoe, Koretz, La Malfa, La
Suer, Laird, Leno, Leslie, Levine, Lieber, Liu,
Longville, Lowenthal, Maddox, Maldonado, Matthews, Maze,
McCarthy, Montanez, Mountjoy, Mullin, Nakanishi, Nakano,
Nation, Negrete McLeod, Oropeza, Pacheco, Parra, Pavley,
Plescia, Reyes, Richman, Ridley-Thomas, Salinas,
Samuelian, Simitian, Spitzer, Steinberg, Strickland,
Vargas, Wesson, Wiggins, Wolk, Wyland, Yee, Nunez
NOES: Haynes
NO VOTE RECORDED: Runner
TSM:cm 8/13/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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