BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 429|
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THIRD READING
Bill No: AB 429
Author: Correa (D)
Amended: 8/25/00 in Senate
Vote: 21
SENATE APPROPRIATIONS COMMITTEE : 12-0, 8/21/00
AYES: Johnston, Bowen, Burton, Escutia, Johnson, Karnette,
Kelley, Leslie, McPherson, Mountjoy, Perata, Vasconcellos
SENATE FLOOR : 31-6, 8/31/00
AYES: Alarcon, Alpert, Bowen, Brulte, Burton, Costa, Dunn,
Escutia, Figueroa, Hughes, Johannessen, Johnson,
Johnston, Karnette, Kelley, McPherson, Monteith, Murray,
O'Connell, Ortiz, Peace, Perata, Poochigian, Rainey,
Schiff, Sher, Solis, Soto, Speier, Vasconcellos, Wright
NOES: Haynes, Knight, Leslie, Lewis, Morrow, Mountjoy
ASSEMBLY FLOOR : 71-3, 9/1/00 - See last page for vote
SUBJECT : State Teachers' Retirement System:
supplemental benefit
SOURCE : STRS Board of Administration
DIGEST : This bill provides an ad hoc increase to members
of the State Teachers' Retirement System of between one
percent and six percent.
ANALYSIS : Under the State Teachers' Retirement Law,
retired members and nonmember spouses, disabled members,
and beneficiaries of the Defined Benefit Program, as
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defined, receive monthly allowances that are subject to
supplementary increases to preserve their purchasing power.
The increase in the bill will be between one percent and
six percent, depending on the date of retirement, with
members who retired (or beneficiaries) during 1997
receiving a one percent increase and incrementally
increasing up to six percent for members who retired (or
beneficiaries) before December 31, 1874. The increase will
be added to the base salary, which is subject to the annual
two percent cost-of-living adjustment and quarterly
purchasing power protection payments.
SB 713 (Burton), Chapter 632, Statutes of 1999, provided a
minimum guaranteed allowance payable to specified retired
members of STRS, their option beneficiaries and surviving
spouses. The annual minimum allowance ranged from $15,000
to $20,000, depending on the number of years of credited
service (20-30 years).
The ad hoc increase proposed by this bill will not be based
upon any adjustments provided to retirees resulting from
the enactment of SB 713.
Staff notes that the provisions of this bill are identical
to the ad hoc increase benefit provided to retired PERS
state and school members.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
The total present value cost is $889 million.
Administrative costs to CalSTRS result from computer system
modifications and other procedural changes.
ASSEMBLY FLOOR
AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn, Bates,
Battin, Baugh, Bock, Brewer, Briggs, Calderon, Campbell,
Cardenas, Cardoza, Cedillo, Corbett, Correa, Cox,
Cunneen, Davis, Dickerson, Ducheny, Dutra, Firebaugh,
Florez, Gallegos, Granlund, Havice, Honda, House,
Jackson, Keeley, Knox, Kuehl, Leach, Lempert, Leonard,
Longville, Lowenthal, Machado, Maldonado, Margett,
Mazzoni, Migden, Nakano, Olberg, Oller, Robert Pacheco,
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Rod Pacheco, Papan, Pescetti, Reyes, Romero, Runner,
Scott, Shelley, Steinberg, Strickland, Strom-Martin,
Thomson, Torlakson, Villaraigosa, Washington, Wayne,
Wesson, Wiggins, Wildman, Wright, Zettel, Hertzberg
NOES: Baldwin, Kaloogian, McClintock
DLW:kb 9/21/00 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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