BILL ANALYSIS
Appropriations Committee Fiscal Summary
2753 (Corbett)
Hearing Date: 8/4/04 Amended: 7/19/04
Consultant: Maureen Ortiz Policy Vote: P. E. & R.
3-2
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BILL SUMMARY: AB 2753 reduces the reemployment
restrictions that apply to members of the CalSTRS Defined
Benefit Program who retire under either of two early
retirement incentive programs.
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Fiscal Impact (in thousands)
Major Provisions 2004-05 2005-06
2006-07 Fund
Reemployment
restrictions ----------unknown, not
substantial-------- TRF
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STAFF COMMENTS: CalSTRS indicates that there will not be
any increases in benefit payments, and that the system may
realize some minor savings from not having to administer
two different formulas.
AB 1207 (Corbett), Chapter 313 of 2003 re-authorized a
golden handshake program that provides an additional two
years of service credit for teachers. That bill also
authorized a two plus two program. AB 1207 provided
limitations on teachers who take the early retirement
incentive and later return to work, but the language was
not consistent between those in K-12 districts, and the
County Office of Education or Community College districts.
It provided that teachers were not allowed to return to
work in the same district that they retired from for 5
years, and were not allowed to work for another district
for one year without forgoing the increase in their
benefit. However, teachers who retired from a county
office of education or community college district did not
have any restrictions placed on them for returning to work.
Districts claim that the inconsistent, strict limitations
preclude them from hiring qualified retirees in emergency
situations.
This bill reduces the 5-year limitation to one-year for
teachers who retire with the golden handshake and return to
work in the same district. It eliminates the one-year
restriction on teachers that go back to work, but in
another district. And, it places a one-year restriction on
those who retire from a county office of education or
community college district and return to the same.
Existing law places an earnings limitation on teachers who
retire. Currently, teachers who retire can earn up to
$25,740 annually before having their retirement benefit
decreased dollar for dollar.