BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1220
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 1220 (Torres) - As Amended:  August 4, 2014

          Policy Committee:                              PERSSVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill makes various technical, conforming, and minor changes  
          to the Teachers Retirement Law and administration of the  
          California State Teachers Retirement System (CalSTRS) Plan.  In  
          summary, this bill:

          1)Modifies the provisions regarding breaks in service to ensure  
            teachers working on non-traditional school years are not  
            inadvertently penalized for breaks in service; clarifies  
            calculation rules for final compensation are based on  
            compensation earned in the school year.

          2)Clarifies creditable compensation rules for teachers  
            performing "outgrowth activities" such as mentoring, coaching  
            a team, advising a club, or performing departmental chair  
            duties.

          3)Specifies that joint powers authorities may be considered  
            employers for purposes of the Teachers Retirement Law under  
            specified circumstances.

          4)Clarifies that members may not receive retirement benefits at  
            a time they subsequently apply for a disability benefit;  
            clarifies the rules regarding longevity bonuses payable to  
            members following termination of disability benefits and  
            subsequent retirement for service.

          5)Allows same-sex couples to change their election of certain  
            options or annuities following the US Supreme Court 2013  
            decision in US v Windsor that held Section 3 of the federal  
            Defense of Marriage Act unconstitutional.









                                                                  SB 1220
                                                                  Page  2

          6)Makes various other conforming changes to definitions,  
            punctuation, and organization.

           FISCAL EFFECT  

          One-time special fund costs to CalSTRS of $55,000 to $63,000;  
          minor and absorbable ongoing program costs.

           COMMENTS  

           Purpose.   According to the sponsor, CalSTRS, this bill will help  
          ensure continued effective and efficient plan administration for  
          CalSTRS internal and external customers.


           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081