BILL ANALYSIS                                                                                                                                                                                                    






          SENATE PUBLIC EMPLOYMENT & RETIREMENT     BILL NO: AB 141
          Deborah V. Ortiz, Chair      Hearing date: April 10, 2000
          AB 141 (Knox)  as amended 4/4/00            FISCAL:   YES

           STRS:  RETIRED SCHOOL ADMINISTRATORS:  SECOND HALF-YEAR OF  
          EXEMPTION FROM THE STRS RETIREE EARNINGS LIMITATION
           
           HISTORY  :            

              Sponsor:  California Association of School Business  
          Officials (CASBO)

              Prior legislation:  none

           ASSEMBLY VOTES  :     N/A (new bill with amendments)
          
           
          SUMMARY  : 

          Would extend the existing half-year earnings limitation  
          exemption for retired school administrators who returned to  
          service to fill a vacancy.   URGENCY BILL.  


           BACKGROUND AND ANALYSIS  : 

          1)   Existing STRS law  allows retired members of the State  
          Teachers' Retirement System (STRS) to earn up to $19,500 in  
          1999-2000 for public school employment.  The earnings  
          limitation is adjusted annually to reflect changes in the  
          Consumer Price Index.  Any  creditable earnings in excess of  
          this amount result in a dollar-for-dollar reduction in the  
          retirement allowance.

          2)   Existing STRS law  also provides for a one half-year  
          exemption from this earnings limit if retired administrators  
          return to service during the process of permanently filling a  
          vacant administrative position  .  This provision of the STRS  
          law sunsets July 1, 2003.
           
          3)   This bill  :

            a)  provides that retired administrators are permitted to  
            serve for a second half-year and continue to be exempted  
          David Felderstein                                     AB 141
          Date:  4/5/00                                          Page 1  









            from the STRS earnings limitation,

            b)  specifies that permission for administrators to serve a  
            second half-year exempted from the STRS earnings limitation  
             took effect on 7/31/99  and shall sunset 12/31/00, and 

            c)  declares that this is an urgency statute to take effect  
            immediately.
           




           COMMENTS  :

          1)   SUPPORT  :
          
               Association of California School Administrators (ACSA)
               Beverly Hills Unified School District
               Sacramento City Unified School District
          
          2)   OPPOSITION  :

               None to date.


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          David Felderstein                                     AB 141
          Date:  4/5/00                                          Page 2