BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1101|
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THIRD READING
Bill No: AB 1101
Author: Eng (D)
Amended: As introduced
Vote: 21
SENATE PUBLIC EMPLOYMENT & RET. COMMITTEE : 3-2, 6/13/11
AYES: Negrete McLeod, Padilla, Vargas
NOES: Walters, Gaines
SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/6/12
AYES: Kehoe, Alquist, Lieu, Price, Steinberg
NOES: Walters, Dutton
ASSEMBLY FLOOR : 52-22, 5/5/11 - See last page for vote
SUBJECT : Teachers Retirement Board: members
SOURCE : California Federation of Teachers
DIGEST : This bill replaces the retiree representative on
the Teachers Retirement Board appointed by the Governor
with a representative elected by the retirees of the
California State Teachers' Retirement System.
ANALYSIS :
Existing law:
1. Provides that California State Teachers' Retirement
System (CalSTRS) Teachers' Retirement Board (TRB)
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consists of the following:
A. Three member-elected positions representing
current educators.
B. A retired CalSTRS member appointed by the
Governor and confirmed by the Senate.
C. Three public representatives appointed by the
Governor and confirmed by the Senate.
D. A school board representative appointed by the
Governor and confirmed by the Senate.
E. Four board members who serve in an ex-officio
capacity by virtue of their office: Director of the
Department of Finance, State Controller, the
Superintendent of Public Instruction, and the State
Treasurer.
2. Establishes the Defined Benefit (DB) and Cash Balance
Benefit (CB) programs administered by CalSTRS as
separate benefit programs for full-time public school
administrators and instructors, and part-time or
seasonal instructors who are not eligible for the DB
program, respectively.
3. Defines an "active member" under the DB Program as a
member who is not retired or disabled and who earns
creditable compensation during the school year.
4. Defines a "retired member" as a member who has
terminated employment and to whom a service retirement
or disability retirement benefit is payable.
5. Defines a "disabled member" as a member to whom a
disability allowance is payable.
6. Defines a "participant" under the CB Program as a person
who has contributions credited under the program or who
is receiving an annuity under the program by reason of
creditable service.
This bill:
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1. Replaces the TRB member who is either a retired CalSTRS
DB member or a retired CB 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 Program.
2. Specifies the term for this new Board member is four
years, beginning January 1, 2016.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, one-time
costs of about $75,000 in FY 2015-16 and then every four
years thereafter (Special). The election for this board
member will be held when ballots are mailed out the fall of
2015 which coincides with a currently scheduled election
for other elected board positions. The increase in costs
associated with the election of the retired member seat for
staff and vendor expenses will be approximately $75,000
every four years.
SUPPORT : (Verified 8/8/12)
California Federation of Teachers (source)
California Retired Teachers Association
California Teachers Association
Faculty Association of California Community Colleges
Los Angeles College Faculty Guild, AFT Local 152
ARGUMENTS IN SUPPORT : According to the author's office,
"Current law allows for a retiree representative to serve
on the board of CalSTRS; however, the retiree is appointed
by the Governor. 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 percent of CalSTRS
members - retirees - without a voice. This bill would
allow the retiree representative to be elected by their
retired peers."
According to the sponsor, the California Federation of
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Teachers, "Currently, only three of �CalSTRS' board
members] are elected participants; however, none of these
elected members are voted on by the retirees. This bill
will not change or eliminate the members who serve due to
their external positions such as the Director of Finance,
State Controller, State Superintendent of Public
Instruction, and State Treasurer. Electing a retired STRS
member to represent other retirees will provide a direct
voice for the unique perspective of those CalSTRS members
who have already retired, �and] will allow retirees to have
a united voice on retirement issues."
ASSEMBLY FLOOR :
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Butler, Charles Calderon, Campos, Carter, Cedillo,
Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes,
Galgiani, Gatto, Gordon, Hall, Hayashi, Roger Hern�ndez,
Hill, Huber, Hueso, Huffman, Knight, Lara, Bonnie
Lowenthal, Ma, Mendoza, Mitchell, Monning, Pan, Perea, V.
Manuel P�rez, Portantino, Skinner, Solorio, Swanson,
Torres, Wieckowski, Williams, Yamada, John A. P�rez
NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly,
Fletcher, Grove, Hagman, Halderman, Harkey, Jeffries,
Logue, Mansoor, Miller, Morrell, Nestande, Norby, Olsen,
Silva, Smyth, Valadao, Wagner
NO VOTE RECORDED: Furutani, Garrick, Gorell, Jones,
Nielsen, Vacancy
DLW:RJG:d 8/8/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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