BILL NUMBER: AB 816 AMENDED
BILL TEXT
AMENDED IN SENATE FEBRUARY 24, 2000
AMENDED IN ASSEMBLY JANUARY 3, 2000
INTRODUCED BY Committee on Public Employees, Retirement and Social
Security (Correa (Chair), Firebaugh, Honda, Knox, and Pescetti)
FEBRUARY 24, 1999
An act to amend Sections 22138.5 , 22163, 22508.5, 23001,
23008, 23300, 24201, 24307, and 24410.5 of the Education Code,
relating to state teachers' retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 816, as amended, Committee on Public Employees, Retirement and
Social Security. State Teachers' Retirement System.
(1) The State Teachers' Retirement Law authorizes a member of
the Defined Benefit Program to designate, or change the designation
of, a beneficiary to receive benefits payable under the program,
except as specified.
This bill would additionally authorize an option beneficiary to
designate, or change the designation of, a beneficiary to receive
those benefits.
(2) The State Teachers' Retirement Law defines "full time"
and "reinstatement" for purposes of calculating
creditable service for service retirement benefits
. Existing law also , provides a specified
membership option to employees of a community college district who
have been previously or are subsequently employed by the Board of
Governors of the California Community Colleges, prescribes reporting
and payment requirements for specified employing agencies, specifies
eligibility requirements for service retirement, prescribes
allowances payable to designated beneficiaries under specified
preretirement options, and prescribes minimum annual allowances
payable to a retired member, an option beneficiary, or a surviving
spouse receiving specified death benefits.
This bill would make technical changes to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22138.5 of the Education Code is amended to
read:
22138.5. (a) "Full time" means the days or hours of creditable
service the employer requires to be performed by a class of employees
in a school year in order to earn the compensation earnable as
defined in Section 22115 and specified under the terms of a
collective bargaining agreement or employment agreement. For the
purpose of crediting service under this part, "full time" shall not
be less than the minimum standards specified in this section.
(b) The minimum standard for full time in kindergarten through
grade 12 shall be:
(1) One hundred seventy-five days per year or 1,050 hours per
year, except as provided in paragraphs (2) and (3).
(2) (A) One hundred ninety days per year or 1,520 hours per year
for all principals and program managers, including advisers,
coordinators, consultants, and developers or planners of curricula,
instructional materials, or programs, and for administrators, except
as provided in subparagraph (B).
(B) Two hundred fifteen days per year or 1,720 hours per year
including school and legal holidays pursuant to the policy adopted by
the employer's governing board for administrators at a county office
of education.
(3) One thousand fifty hours per year for teachers in adult
education programs.
(c) The minimum standard for full time in community colleges shall
be:
(1) One hundred seventy-five days per year or 1,050 hours per
year, except as provided in paragraphs (2), (3), (4), (5), and (6).
Full time shall include time for duties the employer requires to be
performed as part of the full-time assignment for a particular class
of employees.
(2) One hundred ninety days per year or 1,520 hours per year for
all program managers and for administrators, except as provided in
paragraph (3).
(3) Two hundred fifteen days per year or 1,720 hours per year
including school and legal holidays pursuant to the policy adopted by
the employer's governing board for administrators at a district
office.
(4) One hundred seventy-five days per year or 1,050 hours per year
for all counselors and librarians.
(5) Five hundred twenty-five instructional hours per school year
for all instructors employed on a part-time basis, except instructors
specified in paragraph (6). If an instructor receives compensation
for office hours pursuant to Article 10 (commencing with Section
87880) of Chapter 3 of Part 51, then the minimum standard established
herein shall be increased appropriately by the number of office
hours required annually for the class of employees.
(6) Eight hundred seventy-five instructional hours per school year
for all instructors employed in adult education programs. If an
instructor receives compensation for office hours pursuant to Article
10 (commencing with Section 87880) of Chapter 3 of Part 51, then the
minimum standard established herein shall be increased appropriately
by the number of office hours required annually for the class of
employees.
(d) The board shall have final authority to determine full time
for purposes of crediting service under this part if full time is not
otherwise specified herein.
SEC. 2. Section 22163 of the Education Code is amended to
read:
22163. "Reinstatement" means the change in status with respect to
the Defined Benefit Program under this part from a disabled or
retired member to an active or inactive member and termination of one
of the following:
(a) A service retirement allowance pursuant to Section 24208.
(b) A disability retirement allowance pursuant to Section 24117.
(c) A disability allowance pursuant to Section 24004 , 24006,
or 24015.
(d) A service retirement allowance or disability retirement
allowance pursuant to Section 23404.
SEC. 3. Section 22508.5 of the Education Code is amended to read:
22508.5. (a) Any person who is a member of the Defined Benefit
Program of the State Teachers' Retirement Plan employed by a
community college district who subsequently is employed by the Board
of Governors of the California Community Colleges to perform duties
that are subject to membership in a different public retirement
system, shall be excluded from membership in that different system if
he or she elects, in writing, and files that election in the office
of the State Teachers' Retirement System within 60 days after the
person's entry into the new position, to continue as a member of the
Defined Benefit Program. Only a person who has achieved plan vesting
is eligible to elect to continue as a member of the program.
(b) A member of the Public Employees' Retirement System who is
employed by the Board of Governors of the California Community
Colleges who subsequently is employed by a community college district
to perform creditable service subject to
coverage under that requires membership in the
Defined Benefit Program, may elect to have that service subject to
coverage by the Public Employees' Retirement System and excluded from
coverage under the Defined Benefit Program pursuant to Section 20309
of the Government Code.
(c) This section shall apply to changes in employment effective on
or after January 1, 1998.
SEC. 4. Section 23001 of the Education Code is amended to read:
23001. Each county superintendent , district superintendent,
chancellor of a community college district, or other employing
agency that reports directly to the system shall draw
his or her requisitions for contributions required by
Sections 22901 and 22950 in favor of the State Teachers' Retirement
System, and the requisitions, when allowed and signed by the county
auditor, shall constitute a warrant against the county treasury. The
county superintendent , district superintendent, chancellor of
a community college district, or other employing agency
thereupon shall forward the warrants to the board in Sacramento. The
amounts received shall be deposited immediately in the State
Treasury to the Teachers' Retirement Fund.
SEC. 5. Section 23008 of the Education Code is amended to read:
23008. (a) If more or less than the required contributions
specified in this part and Section 44987 are paid to the system based
on any payment of creditable compensation to a member, proper
adjustments shall be made on a monthly report, by the
county superintendent , district superintendent, chancellor of a
community college district, or other employing agency
on a monthly who submitted the report ,
within 60 days of after discovery
or of notification by the system and any refunds
shall be made to the member within the same time period by the
employing agency.
(b) The board may assess penalties for late or improper
adjustments pursuant to Section 23006. These penalties shall be no
more than the regular interest as defined in Section 22162. The
penalty so assessed shall be deemed interest earned in the year in
which it was received.
(c) If a required report contains erroneous information and the
system, acting in good faith, disburses funds from the Teacher's
Retirement Fund based on that information, the county superintendent
, district superintendent, chancellor of a community college
district, or other employing agency who submitted the report
shall reimburse the retirement fund in full for the amount of the
erroneous disbursement. Reimbursement shall be made immediately upon
notification by the system.
SEC. 6. Section 23300 of the Education Code is amended to read:
23300. (a) A member of the Defined Benefit Program or an
option beneficiary may at any time designate a beneficiary, or
change the designation of a beneficiary, to receive benefits payable
under this part, except that no beneficiary designation may be made
in derogation of the community property share of any nonmember spouse
under this part when any such benefit is derived,
in whole or in part, from community property contributions or
service credited during the period of marriage, unless the nonmember
spouse has previously obtained an alternative order for distribution
pursuant to Section 2610 of the Family Code. A designation of
beneficiary shall be in writing on a form prescribed by the system,
executed by the member or option beneficiary , witnessed
by two witnesses, neither of whom may be beneficiaries. To be valid
the instrument shall be received in the office of the system in
Sacramento before the member's death of the
designating party .
(b) Except as otherwise stated in this section, the designation of
beneficiary, other than an option beneficiary, may be revoked by the
member party making the designation,
and a different beneficiary designated in the same manner as provided
in this section.
SEC. 7. Section 24201 of the Education Code is amended to read:
24201. (a) A member may retire for service under this part upon
written application for retirement to the board, under paragraph (1)
or (2) as follows:
(1) The member has attained the age of 55 years or more and has at
least five years of credited service, at least one year of which has
been performed subsequent to the most recent refund of accumulated
retirement contributions. The five years of credited service may
include out-of-state service purchased pursuant to Section 22820.
The number of years of credited service performed in California shall
not be less than the number of years necessary to determine final
compensation pursuant to Section 22134 or 22135, whichever is
applicable to the member.
(2) The member is credited with service that is not used as a
basis for benefits under any other public retirement system,
excluding the federal social security system, if the member has
attained the age of 55 years or older and retires concurrently under
one or more of the retirement systems with which the member has
concurrent membership as defined in Section 22115.2.
(b) Application for retirement under paragraph (2) of subdivision
(a) may be made even if the member has not earned five years of
credited service.
SEC. 8. Section 24307 of the Education Code is amended to read:
24307. (a) A member who qualifies to apply for retirement under
Section 24201 or 24203 may make a preretirement election of an
option, as provided in Section 24300 without right of revocation or
change after the effective date of retirement, except as provided in
this part. The preretirement election of an option shall become
effective on the date a properly executed form prescribed by the
system is signed, providing the election is received in the system's
office in Sacramento within 30 days after the date of signature.
(b) A member who makes a preretirement election of an Option 2,
Option 3, Option 4, Option 5, Option 6, or Option 7 may subsequently
make a preretirement election of Option 8. The member may retain the
same option and the same option beneficiary as named in the prior
preretirement election, as an option under Option 8.
(c) Upon the member's death prior to the effective date of
retirement, the beneficiary who was designated under the option
elected and who survives shall receive an allowance calculated under
the option, under the assumption that the member retired for service
pursuant to Section 24202, 24202.5, 24203, 24203.5, 24206,
24209, 24210, 24211, or 24212 on the date of death. The
payment of the allowance to the option beneficiary shall be in lieu
of the family allowance provided in Section 23804, the payment
provided in paragraph (1) of subdivision (a) of Section 23802, the
survivor benefit allowance provided in Section 23854, and the payment
provided in subdivisions (a) and (b) of Section 23852, except that
if the beneficiary dies before all of the member's accumulated
retirement contributions are paid, the balance, if any, shall be paid
to the estate of the person last receiving or entitled to receive
the allowance. The accumulated annuity deposit contributions and the
death payment provided in Sections 23801 and 23851 shall be paid to
the beneficiary in a lump sum.
(d) If the member subsequently retires for service, and the
elected option has not been canceled pursuant to Section 24309, a
modified service retirement allowance computed under Section 24300
and the option elected shall be paid.
(e) The amount of the service retirement allowance prior to
applying the option factor shall be calculated as of the earlier of
the member's age at death before retirement or age on the last day of
the month in which the member requested service retirement be
effective. The modification of the service retirement allowance
under the option elected shall be based on the ages of the member and
the beneficiary designated under the option, at
as of the date the election was signed.
(f) A member who terminates the service retirement allowance
pursuant to Section 24208 shall not be eligible to file a
preretirement election of an option until one calendar year elapses
from the date the allowance is terminated.
(g) The system shall inform members who are qualified to make a
preretirement election of an option, through the annual statements of
account, that the election of an option can be made.
(h) This section shall become operative on January 1, 2000.
SEC. 9. Section 24410.5 of the Education Code is amended to
read:
24410.5. (a) Notwithstanding any provision of this part,
including, but not limited to, subdivision (e) of Section 22664, the
annual allowance payable on the effective date of this section to a
retired member, an option beneficiary, or a surviving spouse
receiving an allowance pursuant to either Section 23805 or 23855
shall not be less than the amount identified in the following
schedule for the number of years of the member's credited service
under the Defined Benefit Program at the time of the member's
retirement, disability, or death, excluding service credited pursuant
to Sections 22714, 22715, 22717 and 22826, after the application of
all allowances and allowance increases authorized by this part,
including those specified in Sections 24412 and 24415, as those
sections read on December 31, 1999, excluding annuities payable from
the accumulated annuity deposit contributions or the accumulated
tax-sheltered annuity contributions:
20 years of credited service .............. $15,000
21 years of credited service .............. $15,500
22 years of credited service .............. $16,000
23 years of credited service .............. $16,500
24 years of credited service .............. $17,000
25 years of credited service .............. $17,500
26 years of credited service .............. $18,000
27 years of credited service .............. $18,500
28 years of credited service .............. $19,000
29 years of credited service .............. $19,500
30 years or more of credited service ...... $20,000
(b) Notwithstanding subdivision (a), the amount identified in the
schedule in subdivision (a) shall be reduced:
(1) By 50 percent for a beneficiary receiving an allowance under
Option 3 or Option 7.
(2) By one-third for an option beneficiary receiving an allowance
under Option 4 after the death of the member or for a member
receiving an allowance under Option 4 after the death of the option
beneficiary.
(3) By 50 percent for an option beneficiary receiving an allowance
under Option 5 after the death of the member or for a member
receiving an allowance under Option 5 after the death of the option
beneficiary.
(4) By a percentage equal to 100 percent minus the percentage of
the member's modified allowance received by the option beneficiary
for each option beneficiary receiving an allowance under Option 8.
(5) By 60 percent for a surviving spouse receiving an allowance
pursuant to subdivision (a) of Section 23805.
(6) By 50 percent for a surviving spouse receiving an allowance
pursuant to subdivision (c) of Section 23805 or Section 23855.
(c) A member to whom a disability allowance is payable on January
1, 2000, who subsequently receives a service retirement allowance
pursuant to Section 24213 shall, upon the retirement for service,
receive an increase in the service retirement allowance pursuant to
this section.
(d) A member, beneficiary, or surviving spouse may receive an
allowance pursuant to this section only if the member was an active
member at the time of the member's retirement, or death and, for
those members who retired for service, the member retired on or after
age 55, unless the member's allowance was not subject to a reduction
due to retirement prior to an age specified in this part.
(e) A retired member, option beneficiary, or surviving spouse
subject to this section shall receive the annual minimum allowance
pursuant to this section unless the system receives in writing, on a
form prescribed by the system, notification from the member, option
beneficiary, or surviving spouse before May 1, 2000, of his or her
election not to receive the increase provided under this section.
(f) Benefits payable under this section shall be initially paid by
the system on July 1, 2000.
SEC. 3.
SEC. 10. Any section of any act enacted by the Legislature
during the 2000 calendar year that takes effect on or before January
1, 2001, and that amends, amends and renumbers, adds, repeals and
adds, or repeals a section that is amended, amended and renumbered,
repealed and added, or repealed by this act, shall prevail over this
act, whether that act is enacted prior to, or subsequent to, the
enactment of this act. The repeal, or repeal and addition, of any
article, chapter, part, title, or division of any code by this act
shall not become operative if any section of any other act that is
enacted by the Legislature during the 2000 calendar year and takes
effect on or before January 1, 2001, amends, amends and renumbers,
adds, repeals and adds, or repeals any section contained in that
article, chapter, part, title, or division.