BILL ANALYSIS
SB 1137
Page 1
SENATE THIRD READING
SB 1137 (Burton)
As Amended March 26, 2004
Majority vote
SENATE VOTE :21-8
PUBLIC EMPLOYEES 5-2 APPROPRIATIONS 14-5
-----------------------------------------------------------------
|Ayes:|Negrete McLeod, Levine, |Ayes:|Chu, Berg, Calderon, |
| |Chan, Kehoe, Laird | |Corbett, Correa, |
| | | |Goldberg, Nation, Negrete |
| | | |McLeod, Oropeza, Pavley, |
| | | |Ridley-Thomas, Wesson, |
| | | |Wiggins, Yee |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Campbell, Nakanishi |Nays:|Runner, Bates, Daucher, |
| | | |Haynes, Keene |
| | | | |
-----------------------------------------------------------------
SUMMARY : Requires that the retiree member of the State
Teachers' Retirement System (STRS) Board, that is currently
appointed by the Governor, be elected by retired and disabled
STRS members to a four-year term, beginning January 1, 2006.
EXISTING LAW :
1)Provides for the election, as of January 1, 2004, of three
members of the STRS Board, at elections conducted by the
board.
2)Provides for the appointment to the STRS Board of either a
retired member of the Defined Benefit Program or a retired
participant of the Cash Balance Benefit Program of the State
Teachers' Retirement Plan.
FISCAL EFFECT : According to the Senate Appropriations Committee
analysis, costs to prepare and distribute the notice of
elections, test and print ballots, print outer envelopes,
candidate statements and return envelopes, and to count and
tabulate returned ballots will be approximately $104,700 every
four years. These estimates are based on costs from a recently
held STRS K-12 election.
SB 1137
Page 2
COMMENTS : The STRS Board: STRS provides retirement,
disability, and survivor benefit programs for approximately
725,000 active and retired teachers in California's public
schools and community colleges. The 12-member Board administers
STRS benefits and oversees the investment of the $117 billion
Teachers' Retirement Fund.
STRS Board composition before 2004: All members except
"ex-officio" members were appointed by the Governor. Prior to
January 1, 2004, the following were appointed to the Board by
the Governor for four year terms:
1)Two seats were held by STRS members who were K-12 classroom
teachers.
2)One seat was held by a STRS member who was a community college
instructor with expertise in business or economics.
3)One seat was held by a school board member or community
college trustee.
4)One seat was held by a retired STRS member.
5)One seat was held by an officer of a life insurance company
(Senate confirmation required).
6) One seat was held by an officer of a bank or savings and loan
institution (Senate confirmation required).
7)One seat was held by a representative of the public (Senate
confirmation required).
8)Four remaining seats are held by the Director of the
Department of Finance, the Superintendent of Public
Instruction, the Controller and the Treasurer, by virtue of
their office.
STRS Board composition beginning January 1, 2004: Certain
members elected by specified segments of the STRS membership.
Pursuant to Chapter 1049, Statutes of 2002, on January 1, 2004:
1)One of the two existing K-12 seats became occupied by a K-12
employee who is not an administrator, was elected by active
(not retired) K-12 STRS members.
SB 1137
Page 3
2)The other of two existing K-12 seats became occupied by a K-12
employee who is an active member (could be an administrator),
was elected by active K-12 members.
3)The community college seat became occupied by a community
college instructor and an active member, was elected by active
community college members.
4)The Banking and Insurance representatives to the STRS Board
were converted into public representative seats appointed by
the Governor and subject to confirmation by the Senate.
5)The retired member and employer governing board
representatives continue to be appointed by the Governor but
are now subject to confirmation by the Senate.
According to the sponsor, the California Association of Retired
Teachers, if this bill becomes law, approximately 170,000
retired and disabled members of the STRS Defined Benefit Program
and the STRS Cash Balance Benefit Program will be eligible to
elect their own representative to the STRS Board.
Analysis Prepared by : Clem Meredith / P.E., R. & S.S. / (916)
319-3957
FN: 0006389