BILL NUMBER: AB 506 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Furutani
FEBRUARY 24, 2009
An act to amend Sections 24214, 24216, 24216.5, and 24216.6 of the
Education Code, relating to state teachers' retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 506, as introduced, Furutani. State teachers' retirement:
postretirement earnings.
(1) The State Teachers' Retirement Law limits the amount of
postretirement compensation that may be earned in specified types of
employment by a retired member of the Defined Benefit Program without
a reduction in the retirement benefits of the member. That law,
operative until June 30, 2010, provides exemptions from this limit
and specifies that the limitation provisions do not apply to
compensation earned by a member retired for service who has returned
to work after retirement and, for at least 12 consecutive months, has
not performed specified activities.
This bill would, as of July 1, 2010, apply a limitation of $0 to
the compensation for performance of specified activities as an
employee of an employer, an employee of a third party, or as an
independent contractor during the first six calendar months after a
member retired for service under this part, if the member is below
normal retirement age at the time the compensation is earned. This
bill would also extend the operation of these provisions until June
30, 2012.
(2) Under that law, operative until June 30, 2010, the service
retirement allowance of a retired member of the Defined Benefit
Program is exempt from a reduction if the retired member is appointed
as a trustee or administrator by the Superintendent of Public
Instruction for a maximum period of 2 years, as specified. That law
also exempts from the earnings limitation, until June 30, 2010, any
specified types of service performed by members who retired for
service on or before January 1, 2006, if certain conditions are met.
This bill would prohibit an exemption under that provision from
being granted to a member retired for service whose termination of
employment with the employer is the basis for the vacant
administrative position. This bill would extend these provisions
until June 30, 2012. The bill would instead provide that specified
types of service performed by members who retired for service with an
effective date on or before January 1, 2009, are exempt from the
earnings limitation, if certain conditions are met.
(3) That law further exempts from the earnings limitation
compensation received by a retired member providing direct remedial
instruction, as specified, if that retired member retired on or
before January 1, 2007. That law requires a school district that
employs the retired member to submit documentation to the retirement
system that substantiates the eligibility of the retired member for
temporary employment under these provisions.
This bill would provide that the compensation received by a
retired member providing direct remedial instruction, who retired for
service with an effective date on or before January 1, 2009, shall
be exempt from the earning limitation only until June 30, 2012.
(4) This bill would also make technical, nonsubstantive changes to
these provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 24214 of the Education Code, as amended by
Section 5 of Chapter 494 of the Statutes of 2008, is amended to read:
24214. (a) A member retired for service under this part may
perform the activities identified in subdivision (a) or (b) of
Section 22119.5 as an employee of an employer, as an employee of a
third party, or as an independent contractor within the California
public school system, but the member may not make contributions to
the retirement fund or accrue service credit based on compensation
earned from that service. The employer shall maintain accurate
records of the earnings of the retired member and report those
earnings monthly to the system and retired member as described in
Section 22461.
(b) If a member is retired for service under this part, the rate
of pay for service performed by that member as an employee of the
employer, as an employee of a third party, or as an independent
contractor may not be less than the minimum, nor exceed that paid by
the employer to other employees performing comparable duties.
(c) A member retired for service under this part may not be
required to reinstate for performing the activities identified in
subdivision (a) or (b) of Section 22119.5 as an employee of an
employer, as an employee of a third party, or as an independent
contractor within the California public school system.
(d) A member retired for service under this part may earn
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in any one school year up to the limitation
specified in subdivision (f) as an employee of an employer, as an
employee of a third party, or an independent contractor, within the
California public school system, without a reduction in his or her
retirement allowance.
(e) (1) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned by a
member retired for service under this part who has returned to work
after the date of retirement and, for a period of at least 12
consecutive months, has not performed the activities identified in
subdivision (a) or (b) of Section 22119.5 as an employee of an
employer, as an employee of a third party, or as an independent
contractor within the California public school system. For the
purpose of this paragraph, the period of 12 consecutive months
begins from shall begin no earlier than
the effective date of the member's most recent retirement.
(2) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of the activities described in subdivision (a) for
which the employer is not eligible to receive state apportionment or
to compensation that is not creditable pursuant to Section 22119.2.
(f) The limitation that shall apply to the compensation for
performance of the activities identified in subdivision (a) or (b) of
Section 22119.5 by a member retired for service under this part
either as an employee of an employer, an employee of a third party,
or as an independent contractor shall, in any one school year, be an
amount calculated by the board each July 1 equal to twenty-two
thousand dollars ($22,000) adjusted by the percentage change in the
average compensation earnable of active members of the Defined
Benefit Program, as determined by the system, from the 1998-99 fiscal
year to the fiscal year ending in the previous calendar year.
Notwithstanding the preceding sentence, as of July 1, 2010, the
limitation that shall apply to the compensation for performance of
the activities identified in subdivision (a) or (b) of Section
22119.5 either as an employee of an employer, an employee of a third
party, or as a n independent contractor shall be zero
dollars ($0) during the first six calendar months after a member
retired for service under this part, if the member is below normal
retirement age at the time the compensation is earned.
(g) If a member retired for service under this part earns
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in excess of the limitation specified in
subdivision (f), as an employee of an employer, as an employee of a
third party, or as an independent contractor, within the California
public school system, and if that compensation is not exempt from
that limitation under subdivision (e) or any other provisions of law,
the member's retirement allowance shall be reduced by the amount of
the excess compensation. The amount of the reduction may be equal to
the monthly allowance payable but shall not exceed the amount of the
annual allowance payable under this part for the fiscal year in which
the excess compensation was earned.
(h) The amendments to this section enacted during the 1995-96
Regular Session shall be deemed to have become operative on July 1,
1996.
(i) This section shall remain in effect only until June 30,
2010 2012 , and shall be repealed on
January 1, 2011 2013 , unless a later
enacted statute deletes or extends that date.
SEC. 2. Section 24214 of the Education Code, as amended by Section
6 of Chapter 494 of the Statutes of 2008, is amended to read:
24214. (a) A member retired for service under this part may
perform the activities identified in subdivision (a) or (b) of
Section 22119.5 as an employee of an employer, as an employee of a
third party, or as an independent contractor within the California
public school system, but the member may not make contributions to
the retirement fund or accrue service credit based on compensation
earned from that service. The employer shall maintain accurate
records of the earnings of the retired member and report those
earnings monthly to the system and retired member as described in
Section 22461.
(b) If a member is retired for service under this part, the rate
of pay for service performed by that member as an employee of the
employer, as an employee of a third party, or as an independent
contractor within the California public school system may not be less
than the minimum, nor exceed that paid by the employer to other
employees performing comparable duties.
(c) A member retired for service under this part may not be
required to reinstate for performing the activities identified in
subdivision (a) or (b) of Section 22119.5 as an employee of an
employer, as an employee of a third party, or as an independent
contractor within the California public school system.
(d) A member retired for service under this part may earn
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in any one school year up to the limitation
specified in subdivision (f) as an employee of an employer, as an
employee of a third party, or an independent contractor, within the
California public school system, without a reduction in his or her
retirement allowance.
(e) The postretirement compensation limitation provisions set
forth in this section are not applicable to compensation earned for
the performance of the activities described in subdivision (a) for
which the employer is not eligible to receive state apportionment or
to compensation that is not creditable pursuant to Section 22119.2.
(f) The limitation that shall apply to the compensation for
performance of the activities identified in subdivision (a) or (b) of
Section 22119.5 by a member retired for service under this part
either as an employee of an employer, an employee of a third party,
or as an independent contractor shall, in any one school year, be an
amount calculated by the board each July 1 equal to twenty-two
thousand dollars ($22,000) adjusted by the percentage change in the
average compensation earnable of active members of the Defined
Benefit Program, as determined by the system, from the 1998-99 fiscal
year to the fiscal year ending in the previous calendar year.
Notwithstanding the preceding sentence, the limitation that shall
apply to the compensation for performance of the activities
identified in subdivision (a) or (b) of Section 22119.5 either as an
employee of an employer, an employee of a third party, or as an
independent contractor shall be zero dollars ($0) during the first
six calendar months after a member retired for service under this
part, if the member is below normal retirement age at the time the
compensation is earned.
(g) If a member retired for service under this part earns
compensation for performing activities identified in subdivision (a)
or (b) of Section 22119.5 in excess of the limitation specified in
subdivision (f), as an employee of an employer, as an employee of a
third party, or as an independent contractor, within the California
public school system, the member's retirement allowance shall be
reduced by the amount of the excess compensation. The amount of the
reduction may be equal to the monthly allowance payable but may not
exceed the amount of the annual allowance payable under this part for
the fiscal year in which the excess compensation was earned.
(h) The language of this section derived from the amendments to
the section of this number added by Chapter 394 of the Statutes of
1995, enacted during the 1995-96 Regular Session, is deemed to have
become operative on July 1, 1996.
(i) This section shall become operative on July 1, 2010
2012 .
SEC. 3. Section 24216 of the Education Code is amended to read:
24216. (a) (1) A member retired for service under this part who
is appointed as a trustee or administrator by the Superintendent
pursuant to Section 41320.1, or who is appointed as a trustee
pursuant to the Immediate Intervention/Underperforming Schools
Program (Article 3 (commencing with Section 52053) of Chapter 6.1 of
Part 28) or the High Priority Schools Grant Program (Article 3.5
(commencing with Section 52055.600) of Chapter 6.1 of Part 28), or a
member retired for service who is assigned by a county superintendent
of schools pursuant to Article 2 (commencing with Section 42122) of
Chapter 6 of Part 24, shall be exempt from subdivisions (d) and (f)
of Section 24214 for a maximum period of two years.
(2) The period of exemption shall commence on the date the member
retired for service is appointed or assigned to the position
and shall end no more than two calendar years from that date,
after which the limitation specified in subdivisions (d) and (f) of
Section 24214 shall apply.
(3) An exemption under this subdivision shall be granted by the
system providing that the Superintendent or the county superintendent
of schools submits documentation required by the system to
substantiate the eligibility of the member retired for service for an
exemption under this subdivision.
(b) (1) A member retired for service under this part who is
employed by an employer to perform creditable service in an emergency
situation to fill a vacant administrative position requiring highly
specialized skills shall be exempt from the provisions of
subdivisions (d) and (f) of Section 24214 for creditable service
performed up to one-half of the full-time position, if the vacancy
occurred due to circumstances beyond the control of the employer.
(2) The period of exemption shall commence on the date the member
retired for service is appointed or assigned to the position
and shall end no more than two calendar years from that date,
after which the limitation specified in subdivisions (d) and (f) of
Section 24214 shall apply.
(3) An exemption under this subdivision shall be granted by the
system subject to the following conditions:
(A) The recruitment process to fill the vacancy on a permanent
basis is expected to extend over several months.
(B) The employment is reported in a public meeting of the
governing body of the employer.
(C) The employer submits documentation required by the system to
substantiate the eligibility of the member retired for service for an
exemption under this subdivision.
(4) An exemption under this subdivision shall not be granted to a
member retired for service whose termination of employment with the
employer is the basis for the vacant administrative position.
(c) This section does not apply to any person who has received
additional service credit pursuant to Section 22715 or 22716.
(d) A person who has received additional service credit pursuant
to Section 22714 or 22714.5 shall be ineligible for one year from the
effective date of retirement for the exemption provided in this
section for service performed in any school district, community
college district, or county office of education in the state.
(e) This section shall remain in effect only until June 30,
2010 2012 , and shall be repealed on
January 1, 2011 2013 , unless a later
enacted statute deletes or extends that date.
SEC. 4. Section 24216.5 of the Education Code is amended to read:
24216.5. (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:
(1) The member retired for service with an effective date on or
before January 1, 2007 2009 .
(2) The member retired for service is employed by a school
district to provide any of the following:
(A) Direct classroom instruction to pupils enrolled in
kindergarten or any grades 1 to 12, inclusive.
(B) Support and assessment for new teachers through the Beginning
Teacher Support and Assessment program authorized by Section 44279.1.
(C) Support to individuals completing student teaching
assignments.
(D) Support to individuals participating in the following
programs:
(i) Pre-Internship Teaching Program authorized pursuant to Article
5.6 (commencing with Section 44305) of Chapter 2 of Part 25.
(ii) Alternative certification programs authorized pursuant to
Article 11 (commencing with Section 44380) of Chapter 2 of Part 25.
(iii) School Paraprofessional Teacher Training Program established
pursuant to Article 12 (commencing with Section 44390) of Chapter 2
of Part 25.
(E) Instruction and pupil services provided to pupils enrolled in
special education programs authorized pursuant to Part 30 (commencing
with Section 56000) of Division 4 of Title 2.
(F) Instruction to pupils enrolled in English language learner
programs authorized pursuant to Chapter 3 (commencing with Section
300), Chapter 4 (commencing with Section 400), and Chapter 6
(commencing with Section 430) of Part 1 of Division 1.
(3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service may not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
(4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision.
(b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
(c) This section does not apply to the compensation earned for
creditable service performed by a member retired for service for a
community college district.
(d) This section shall remain in effect only until June 30,
2010 2012 , and shall be repealed as of
January 1, 2011 2013 , unless a later
enacted statute deletes or extends that date.
SEC. 5. Section 24216.6 of the Education Code is amended to read:
24216.6. (a) The compensation earned by a member who retired for
service under this part shall be exempt from subdivisions (d), (f),
and (g) of Section 24214, if all of the following conditions are met:
(1) The member retired for service with an effective date on or
before January 1, 2007 2009 .
(2) The member retired for service is employed by a school
district to provide direct remedial instruction to pupils in grades 2
to 12, inclusive. "Remedial instruction" means the programs
specified in Sections 37252 and 37252.2.
(3) All members retired for service whose employment with a school
district meets the conditions specified in this section shall be
treated as a distinct class of temporary employees within the
existing bargaining unit whose service may not be included in
computing the service required as a prerequisite to attainment of or
eligibility for classification as a permanent employee of a school
district. The compensation for service performed by this class of
employees shall be established in accordance with subdivision (b) of
Section 24214 and agreed to in the collective bargaining agreement
between the employing school district and the exclusive
representative for the existing bargaining unit within which these
temporary employees of the school district are treated as a distinct
class.
(4) The employing school district submits documentation required
by the system to substantiate the eligibility of the temporary
employment of a member retired for service for the exemption under
this subdivision. That documentation shall be on a properly executed
form provided by the system.
(b) A school district that employs a member retired for service
pursuant to this section shall maintain accurate records of the
retired member's compensation earned and shall report that
compensation monthly to the system regardless of the method of
payment or the source of funds from which the compensation is paid.
(c) This section does not apply to the compensation earned for
creditable service performed by a member retired for service for a
county office of education or a community college district.
(d) This section shall remain in effect only until June 30,
2010 2012 , and shall be repealed as of
January 1, 2011 2013 , unless a later
enacted statute deletes or extends that date.