BILL ANALYSIS
AB 1862
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Date of Hearing: April 21, 2010
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Alberto Torrico, Chair
AB 1862 (Eng) - As Introduced: February 12, 2010
SUBJECT : Teachers' Retirement Board: members.
SUMMARY : Replaces the currently Governor-appointed retiree
representative on the Teachers' Retirement Board (TRB) with a
representative elected by the retirees of the California State
Teachers' Retirement System (CalSTRS). Specifically, this bill :
1)Replaces the TRB member who is either a retired CalSTRS
Defined Benefit member or a retired Cash Balance (CB) Benefit
Program participant and appointed by the Governor with one who
is elected by the retired members of the DB Program and the
retired participants of the CB Benefit Program.
2)Specifies the term for this new Board member is four years,
starting January 1, 2012.
EXISTING LAW provides that the TRB consists of the following:
1)Three member-elected positions representing current educators.
2)A retired CalSTRS member appointed by the Governor and
confirmed by the Senate.
3)Three public representatives appointed by the Governor and
confirmed by the Senate.
4)A school board representative appointed by the Governor and
confirmed by the Senate.
5)Four board members who serve in an ex-officio capacity by
virtue of their office: Director of Finance, State Controller,
State Superintendent of Public Instruction, and State
Treasurer.
Under the DB Program, an "active member" is defined as a member
who is not retired or disabled and who earns creditable
compensation during the school year. A "retired member" is
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defined as a member who has terminated employment and to whom a
service retirement or disability retirement benefit is payable.
A "disabled member" is defined as a member to whom a disability
allowance is payable.
Under the CB Benefit Program a "participant" is defined as a
person who has contributions credited under the program or who
is receiving an annuity under the program by reason of
creditable service.
FISCAL EFFECT : Unknown.
COMMENTS : Prior to the enactment of SB 1580 (Burton), Chapter
1049, Statutes of 2002, the TRB had no representatives that were
elected by the members of the system. With the exception of the
four ex-officio members, all of the other board members were
appointed by the Governor. SB 1580 required the three board
members appointed by the Governor to represent active members to
instead be elected by the active members of the system.
Most other public retirement boards in California have elected
members. For example, the Board of Administration of the
California Public Employees' Retirement System has six members
out of thirteen who are elected by their peers and each of the
20 retirement systems being operated under the County Employees'
Retirement Law of 1937 has four members elected by the active
and retired members of the system.
According to supporters, "AB 1862 will allow retirees to have a
united voice on their retirement issues by changing the Retiree
Representative on the TRB of CalSTRS from one being appointed by
the Governor to one being appointed by the retired members of
CalSTRS. The change in statute will allow for a more democratic
process of representation."
REGISTERED SUPPORT / OPPOSITION :
Support
Association of Retired Teachers (Co-Sponsor)
California Federation of Teachers (Co-Sponsor)
California Retired Teachers Association (Co-Sponsor)
California Labor Federation
California Teachers Association
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Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957