BILL NUMBER: AB 429	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Correa

                        FEBRUARY 12, 1999

   An act to amend Section 24600 of the Education Code, relating to
the State Teachers' Retirement System.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 429, as introduced, Correa.  State Teachers' Retirement System:
  benefits.
   Existing law, the State Teachers' Retirement System, sets forth
procedures for the accrual and termination dates of benefits and
allowances, including distributions from the Defined Benefit Program.

   This bill would make technical, nonsubstantive changes to that
provision effective January 1, 2002.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 24600 of the Education Code is amended to read:

   24600.  (a) A retirement allowance under this part begins to
accrue on the effective date of the member's retirement and ceases on
the earlier of the day of the member's death or the day on which the
retirement allowance terminated for a reason other than the member's
death.
   (b) A retirement allowance payable to an option beneficiary under
this part begins to accrue on the day following the day of the
retired member's death and ceases on the day of the option
beneficiary's death.
   (c) A disability allowance under this part begins to accrue on the
effective date of the member's disability and ceases on the earlier
of the day of the member's death or the day on which the disability
allowance terminated for a reason other than the member's death.
   (d) A family allowance under this part begins to accrue on the day
following the day of the member's death and ceases on the day of the
event that terminates eligibility for the allowance.
   (e) A survivor benefit allowance payable to a surviving spouse
under this part pursuant to Chapter 23 (commencing with Section
23850) begins to accrue on the day the member would have attained 60
years of age or on the day following the day of the member's death,
as elected by the surviving spouse, and ceases on the day of the
surviving spouse's death.
   (f) A child's portion of an allowance under this part begins to
accrue on the effective date of that allowance and ceases on the
earlier of either the termination of the child's eligibility or the
termination of the allowance.  An allowance payable because of a
full-time student shall terminate on the first day of the month
following the end of the school quarter or semester that is in
progress in the month the full-time student attains 22 years of age.
Any adjustment to an allowance because of a full-time student's
periods of nonattendance shall be made as follows:  the allowance
shall cease on the first day of the month in which return to
full-time attendance was required and shall begin to accrue again on
the first day of the month in which full-time attendance resumes.
   (g) Supplemental payments issued under this part pursuant to
Sections 24701, 24702, and 24703 to retired members, disabled
members, and beneficiaries shall begin to accrue pursuant to Sections
24701, 24702, and 24703 and shall cease to accrue as of the
termination dates specified in subdivisions (a) to (f), inclusive.
   (h) Notwithstanding any other provision of this part or other law,
distributions from the plan with respect to the Defined Benefit
Program shall be made in accordance with Section 401(a)(9) of the
Internal Revenue Code of 1986, as amended, including the incidental
death benefit requirements of Section 401(a)(9)(G) and the
regulations thereunder, and the required beginning date of benefit
payments that represent the entire interest of the member in the
 plan with respect to the  Defined Benefit Program
shall be as follows:
   (1) In the case of a refund of contributions, as described in
Chapter 12 (commencing with Section 23100) of this part, not later
than April 1 of the calendar year following the later of (A) the
calendar year in which the member attains 70 1/2 years of age or (B)
the calendar year in which the member terminates employment within
the meaning of subdivision (i).
   (2) In the case of a retirement allowance, as defined in Section
22150, beginning not later than April 1 of the calendar year
following the later of (A) the calendar year in which the member
attains 70 1/2 years of age or (B) the calendar year in which the
member terminates employment within the meaning of subdivision (i),
to continue over the life of the member or the lives of the member
and the member's option beneficiary, or over the life expectancy of
the member or the life expectancy of the member and the member's
option beneficiary.
   (i) For purposes of subdivision (h), "terminates employment" means
the later of the termination of employment subject to coverage by
the  plan   Defined Benefit Program  or the
termination of employment in a position requiring or permitting
membership in another public retirement system in this state the
compensation from which may be included in final compensation under
Section 22127.
   (j) This section shall become operative on January 1, 2002.