BILL ANALYSIS
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THIRD READING
Bill No: AB 3076
Author: Mullin (D)
Amended: 8/4/04 in Senate
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 5-0, 6/14/04
AYES: Soto, Ashburn, Escutia, Karnette, Oller
SENATE APPROPRIATIONS COMMITTEE : 13-0, 8/12/04
AYES: Alpert, Battin, Aanestad, Ashburn, Bowen, Burton,
Escutia, Johnson, Karnette, Machado, Murray, Poochigian,
Speier
ASSEMBLY FLOOR : 74-0, 5/17/04 (Passed on Consent) - See
last page for vote
SUBJECT : State Teachers Retirement Law: part-time
community
college faculty
SOURCE : State Teachers Retirement System
DIGEST : This bill excludes community college faculty
members who are classified as temporary employees from
mandatory membership in the State Teachers' Retirement
System Defined Benefit Program as of July 1, 2005.
ANALYSIS : The State Teachers' Retirement System (STRS)
administers two retirement program. The Defined Benefit
(DB) Plan is the primary program for full-time educators
and provides a monthly allowance upon retirement. The Cash
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Balance (CB) Plan is a qualified alternative retirement
program for part-time educators which may be offered in
addition to, or instead of, Social Security. The CB Plan
provides a return of the employee and employer
contributions, plus interest, upon retirement in lieu of a
monthly benefit.
Membership in the DB Plan is mandated for those employed
full-time in teaching positions. However, under existing
law, a part-time employee who typically works less than 60
percent of a full-time load may be mandated to participate
in the DB Program if their workload during one pay period
exceeds a certain threshold.
This bill is intended to prohibit mandatory membership in
the DB Plan for part-time community college faculty when
they have an occasional full-time assignment.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2004-05 2005-06
2006-07 Fund
Membership exclusion -- Over $1.5 million
annually -- STRF
GF contribution -- Annual savings
of $625 -- General
According to the Senate Appropriations Committee analysis,
the estimated loss of revenue to the DB Program is $26
million over a 30-year period. A corresponding reduction
in the state's General Fund contribution is about $14
million. Additionally, the revenue loss to the
Supplemental Benefit Maintenance Account will total $121
million, with partial offsetting savings in GF
contributions of $14 million. It should be noted, however,
that payments from the SBMA are only vested to the extent
that funds are available.
SUPPORT : (Verified 8/12/04)
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State Teachers' Retirement System (source)
California Federation of Teachers
California Teachers Association
Faculty Association of California Community Colleges
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Calderon, Campbell, Canciamilla, Chan, Chu, Cogdill,
Cohn, Corbett, Correa, Cox, Daucher, Diaz, Dutra, Dutton,
Dymally, Frommer, Garcia, Goldberg, Hancock, Harman,
Haynes, Jerome Horton, Shirley Horton, Houston, Jackson,
Keene, Kehoe, La Malfa, La Suer, Laird, Leno, Leslie,
Levine, Lieber, Liu, Longville, Lowenthal, Maddox,
Maldonado, Matthews, Maze, McCarthy, Mountjoy, Mullin,
Nakanishi, Nakano, Nation, Negrete McLeod, Pacheco,
Parra, Pavley, Plescia, Reyes, Richman, Ridley-Thomas,
Runner, Salinas, Samuelian, Simitian, Spitzer, Steinberg,
Strickland, Vargas, Wesson, Wiggins, Wyland, Yee, Nunez
NO VOTE RECORDED: Chavez, Firebaugh, Koretz, Montanez,
Oropeza, Wolk
TSM:cm 8/14/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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