BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 1862
Lou Correa, Chair Hearing date: June 14, 2010
AB 1862 (Eng) as introduced 2/12/10 FISCAL: YES
CALSTRS BOARD: REPLACES THE GOVERNOR'S APPOINTED RETIREE
WITH AN ELECTED MEMBER TO REPRESENT THE SAME POPULATION
HISTORY :
Sponsor: California Federation of Teachers (CFT),
(Co-Sponsor)
California Retired Teachers Association
(CalRTA), (Co-Sponsor)
Association of Retired Teachers (ART),
(Co-Sponsor)
Prior legislation: AB 757 (Assembly PER&SS Committee)
Chapter 323, Statutes of 2007
SB 1108 (Senate Judiciary Committee)
Chapter 2, Statutes of 2005
AB 419 (Assembly PER&SS
Committee)
Chapter 11, Statutes of 2004
SB 1580 (Burton)
Chapter 1049, Statutes of 2002
ASSEMBLY VOTES :
PER & SS 4-2 4/21/10
Appropriations 12-5 5/05/10
Assembly Floor 50-25 5/13/10
SUMMARY :
Would replace the governor-appointed retiree representative
on the California State Teachers' Retirement (CalSTRS)
Board with an elected member to represent the same
population.
BACKGROUND AND ANALYSIS :
1)Existing law :
Michael Bolden
Date: 6/7/10 Page 1
a) Establishes the California State Teachers' Retirement
System (CalSTRS) which administers, through its Board,
the State Teachers' Retirement Law, and prescribes a
comprehensive system of rights and retirement benefits
for its members.
b) Authorizes the Governor to appoint 5 persons to the
Board, subject to confirmation by the Senate, including
a person who is either a retired member of the Defined
Benefit (DB) Program, or a retired participant of the
Cash Balance Benefit Program (CBBP).
c) Delineates the criteria for the 3 members elected to
the Board, and eligible voters. The criteria are:
i. An active member or participant who is
employed by a district providing instruction for any
of grades pre-kindergarten through 12, or by a county
office of education, in a position other than a school
administrator;
ii. An active member or participant who is
employed by a district providing instruction for any
of grades pre-kindergarten through 12, or by a county
office of education, and
iii. An active member or participant who is
employed by a community college district.
2)This bill :
a) Would eliminate the governor's retiree-member
appointee and replace that member with a retiree who is
elected by the retired members of the DBP and retired
participants of the CBBP, rather than appointment by the
governor.
b) Specifies that the term for this elected member of
the Board is four years commencing on January 1, 2012.
COMMENTS :
Michael Bolden
Date: 6/7/10 Page 2
1) CalSTRS Elections Process
According to CalSTRS, which has not taken a position on this
bill, "CalSTRS has held two elections since the passage of SB
1580 (Chapter 1049, Statutes of 2002). The first was in
2003, and the most recent was in 2007. CalSTRS contracts
with an election vendor who prepares ballots and prints the
candidate statements. The vendor carries out the elections
as set forth by regulations adopted by the Board, including
mailing and tabulating the ballots. Currently, active
members and participants are eligible to serve as a
candidate, nominate candidates, and ultimately vote in
elections. The voter eligibility requirements are set forth
in the Notice of Election published by the Board with input
from the Election Coordinator. Eligible members can vote by
mail, phone or internet".
2) Arguments in support
According to CFT, the Co-Sponsors of this bill :
The enactment of SB 1580 (Burton/2002) "changed three of
the CalSTRS Board members from being appointed to being
elected by the members. However, all three of the elected
board members are voted on by active members only. This
leaves about 30% of CalSTRS members, the retired members,
without a voice. While there is a retired member on the
board, this member is not democratically elected and,
therefore, not truly representative of this group".
3) SUPPORT :
California Federation of Teachers (CFT), (Co-Sponsor)
California Retired Teachers Association (CalRTA),
(Co-Sponsor)
Association of Retired Teachers (ART), (Co-Sponsor)
California Labor Federation (CLF)
California Teachers Association (CTA)
Faculty Association of California Community Colleges
(FACCC)
4) OPPOSITION :
Michael Bolden
Date: 6/7/10 Page 3
None to date
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Michael Bolden
Date: 6/7/10 Page 4