BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1137
                                                                  Page  1

          Date of Hearing:   June 23, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                   SB 1137 (Burton) - As Amended:  March 26, 2004 

          Policy Committee:                              PERSSVote:5-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires the seat on the CalSTRS Board reserved for a  
          retired member, which currently is appointed by the Governor, be  
          elected by retired and disabled CalSTRS members to a four-year  
          term, beginning January 1, 2006. 

          FISCAL EFFECT  

          CalSTRS would incur administrative costs of approximately  
          $100,000 every four years to prepare and distribute the notice  
          of elections and print ballots, envelopes, and candidate  
          statements, beginning in 2005-06.
           
           COMMENTS  

           1)Background  .  CalSTRS provides retirement, disability and  
            survivor benefit programs for approximately 725,000 active and  
            retired teachers and other credentialed employees in  
            California's K-12 public schools and community colleges. The  
            12 member CalSTRS Board administers the CalSTRS Defined  
            Benefit Program and the Cash Balance Program and oversees the  
            investments of the approximately $117 billion Teachers'  
            Retirement Fund. 

           2)Purpose  .  This bill would allow approximately 170,000 retired  
            and disabled members of the CalSTRS Defined Benefit Program  
            and the Cash Balance Benefit Program to elect their  
            representative member on the CalSTRS Board. 












                                                                  SB 1137
                                                                  Page  2

           Analysis Prepared by  :    Stephen Shea / APPR. / (916) 319-2081