BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                          AB820  (Correa)
          
          Hearing Date:8/14/2000          Amended:8/7/2000
                                                                       
                   & LCR 16394                
          Consultant: Maureen Brooks          Policy Vote:P. E. & R.   
          5-0                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY:   AB 820 makes several changes to the  
          Teachers Retirement Law as follows:  1) allows a member of  
          STRS, and a nonmember spouse, to make partial redeposits,  
          effective July 1, 2001, of previously refunded member  
          contributions, 2) allows a member to purchase a portion of  
          creditable service that was previously excluded from  
          coverage, 3) allows a retired member who is receiving an  
          unmodified allowance to name a spouse as an option  
          beneficiary, and 4) makes several other technical changes.

                              Fiscal Impact (in thousands)
           
          Major Provisions            2000-01             2001-02             
           2002-03            Fund  
          
          Admin costs               $25                  $50                    
          $50              STRF
          
          STAFF COMMENTS:  
          
          Administrative costs to STRS result from an expected  
          increase in the number of member requests for refund  
          billings and the setting up of accounts for the partial  
          redeposits and purchase of excluded service.

          SB 2126 (Schiff), Chapter 1076, Statutes of 1998,  
          authorized CalSTRS members to redeposit contributions  
          previously withdrawn.  AB 820 will allow redeposits of  
           partial  contributions, and, subject to Board imposed  
          requirements, the member will receive pro rata service  
          credit for those redeposited contributions.

          AB 820 will allow a member who retired with an unmodified  
          allowance, without any beneficiary, to name a spouse as an  
          option beneficiary provided that the member has been  










          married to the spouse for at least a year at the time of  
          the designation.  The designation will take effect six  
          months after received by STRS.