BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2753|
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THIRD READING
Bill No: AB 2753
Author: Corbett (D)
Amended: 5/10/04 in Assembly
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 3-2, 6/14/04
AYES: Soto, Escutia, Karnette
NOES: Ashburn, Oller
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 59-20, 5/17/04 - See last page for vote
SUBJECT : State teachers retirement: early retirement
incentive
SOURCE : California Federation of Teachers
DIGEST : This bill revises 2-year Golden Handshake and 2
+ 2 Golden Handshake post-retirement provisions of the
State Teachers Retirement System early retirement incentive
program.
ANALYSIS :
Existing Law
1.Authorizes a school district, community college district,
or county office of education to grant members of the
Defined Benefit Program of the State Teachers' Retirement
System (STRS) two additional years of service credit or,
CONTINUED
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prior to January 1, 2005, an additional two years of
service and two years of age, if certain conditions are
satisfied and the member retires for service within a
designated period.
2.Requires any member who is granted additional credit for
service or service and age under those provisions
forfeits that credit if he or she is re-employed within
five years after retirement by the district from which he
or she retired or within one year after retirement by any
district.
This bill:
1.Provides that any member granted additional credit for
service or service and age under certain early retirement
programs would forfeit that credit if he or she is
re-employed within one year after retirement by the
school district, community college district, or county
office of education (COE) from which he or she retired.
2.Applies a post-retirement income limit to a retired
member who receives certain golden handshake retirement
benefits and performs creditable service within one year
after retirement for any school district, community
college district, or COE in the state.
3.Reduces the return to work prohibition from five years to
one year for those retirees who receive the golden
handshake retirement benefit and become re-employed by
the district from which they have retired.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/29/04)
California Federation of Teachers (source)
California Teachers Association
State Teachers' Retirement System
Association of California School Administrators
ARGUMENTS IN SUPPORT : According to the Senate Public
Employment and Retirement Committee analysis, this bill
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will change the return to work provisions. These
provisions have actually made the "Golden Handshake"
programs less attractive because, in emergencies, districts
would not be able to employ experienced teachers
knowledgeable of the district, or even bring them in as
substitute teachers when needed.
According to the sponsor, there have been districts that
have opted not to use the Chapter 313 of 2003 "Golden
Handshake" options through STRS and, instead, have used
private annuity companies for early retirement options
because the private companies do not impose return to work
restrictions.
This bill revises the return to work provisions to just
prohibit employees receiving the retirement option from
returning, for one year, to the district form which they
received the retirement incentive. There will no longer be
a prohibition against returning to work in other districts.
ASSEMBLY FLOOR :
AYES: Aghazarian, Berg, Bermudez, Calderon, Canciamilla,
Chan, Chavez, Chu, Cohn, Corbett, Correa, Daucher, Diaz,
Dutra, Dutton, Dymally, Firebaugh, Frommer, Garcia,
Goldberg, Hancock, Harman, Jerome Horton, Shirley Horton,
Jackson, Kehoe, Koretz, Laird, Leno, Levine, Lieber, Liu,
Longville, Lowenthal, Maldonado, Matthews, Maze,
Montanez, Mullin, Nakanishi, Nakano, Nation, Negrete
McLeod, Oropeza, Parra, Pavley, Reyes, Ridley-Thomas,
Salinas, Samuelian, Simitian, Spitzer, Steinberg, Vargas,
Wesson, Wiggins, Wolk, Yee, Nunez
NOES: Bates, Bogh, Campbell, Cogdill, Cox, Haynes,
Houston, Keene, La Malfa, La Suer, Leslie, Maddox,
McCarthy, Mountjoy, Pacheco, Plescia, Richman, Runner,
Strickland, Wyland
NO VOTE RECORDED: Benoit
TSM:cm 6/29/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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