BILL NUMBER: AB 821 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 31, 2000
AMENDED IN SENATE JANUARY 10, 2000
AMENDED IN SENATE JUNE 14, 1999
AMENDED IN ASSEMBLY APRIL 13, 1999
INTRODUCED BY Committee on Public Employees, Retirement and Social
Security (Correa (Chair), Firebaugh, Honda, Knox, and Pescetti)
(Coauthors: Senators Johnston, Karnette, Ortiz, and
Vasconcellos)
FEBRUARY 24, 1999
An act to amend Sections 22134 and 22136 of
add Sections 22134.5 and 22136.5 to the Education Code,
relating to retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 821, as amended, Committee on Public Employees, Retirement and
Social Security. Retirement.
Existing law provides for the payment of retirement benefits to
various school employees under the State Teachers' Retirement System
and the Public Employees' Retirement System .
Under existing law, the retirement benefits are computed based upon
various factors, including the employee's final compensation. Under
existing law, for those school employees, "final compensation" means
the highest average annual compensation earnable by a member during
any period of 3 consecutive school years.
This bill would change that definition of "final compensation"
for members with 25 or more years of credited service to,
instead, mean the highest average annual compensation earnable by
a the member during a consecutive
12-month period of employment, as specified.
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 22134 of the Education Code is amended to read:
22134. (a) "Final
SECTION 1. Section 22134.5 is added to the Education Code, to
read:
22134.5. (a) Notwithstanding Section 22134, "final
compensation" means the highest average annual compensation earnable
by a member during the consecutive 12-month period of
employment immediately preceding the effective date of his or her
retirement or the date of his or her last separation from service if
earlier or during any other during any period of
12 consecutive months while an active member of the Defined Benefit
Program or time during which he or she was not a member but for which
the member has received credit under the Defined Benefit Program,
except time that was so credited for service performed outside this
state prior to July 1, 1944. The last consecutive 12-month period of
employment shall be used by the system in determining final
compensation unless designated to the contrary in writing by the
member.
(b) For purposes of this section, periods of service separated by
breaks in service may be aggregated to constitute a period of 12
consecutive months, if the periods of service are consecutive except
for the breaks.
(c) The determination of final compensation of a member who has
concurrent membership in another retirement system pursuant to
Section 22115.2 shall take into consideration the compensation
earnable while a member of the other system, provided that all of the
following exist:
(1) The member was in state service or in the employment of a
local school district or a county superintendent of schools.
(2) Service under the other system was not performed concurrently
with service under the Defined Benefit Program.
(3) Retirement under the Defined Benefit Program is concurrent
with the member's retirement under the other system.
(d) The compensation earnable for the first position in which
California service was credited shall be used when additional
compensation earnable is required to accumulate three consecutive
years for the purpose of determining final compensation under Section
23805.
(e) If a member has received service credit for part-time service
performed prior to July 1, 1956, the member's final compensation
shall be adjusted for that service in excess of one year by the ratio
that part-time service bears to full-time service.
(f) The board may specify a different final compensation with
respect to disability allowances, disability retirement allowances,
family allowances, and children's portions of survivor benefit
allowances payable on and after January 1, 1978. The compensation
earnable for periods of part-time service shall be adjusted by the
ratio that part-time service bears to full-time service.
(g) The amendment of former Section 22127 made by Chapter 782 of
the Statutes of 1982 does not constitute a change in, but is
declaratory of, the existing law.
(g) This section shall only apply to a member who has 25 or more
years of credited service, excluding service credited pursuant to
Section 22714, 22715, 22717, or 22826, but including any credited
service that a court has ordered be awarded to a nonmember spouse
pursuant to Section 22652. This section also shall apply to a
nonmember spouse, if the member had at least 25 years of credited
service, excluding service credited pursuant to Section 22714, 22715,
22717, or 22826, on the date the parties separated, as established
in the judgment or court order pursuant to Section 22652.
SEC. 2. Section 22136 of the Education Code is amended to read:
22136. "Final
SEC. 2. Section 22136.5 is added to the Education Code, to read:
22136.5. (a) Notwithstanding Section 22136, "final
compensation" with respect to a member whose salary while an active
member was reduced because of a reduction in school funds means the
highest average annual compensation earnable by the member during any
12 months while employed to perform creditable service subject to
coverage by the Defined Benefit Program if the member elects to be
subject to this section.
(b) This section shall only apply to a member who has 25 or more
years of credited service, excluding service credited pursuant to
Section 22714, 22715, 22717, or 22826, but including any credited
service that a court has ordered be awarded to a nonmember spouse
pursuant to Section 22652. This section also shall apply to a
nonmember spouse, if the member had at least 25 years of credited
service, excluding service credited pursuant to Section 22714, 22715,
22717, or 22826, on the date the parties separated, as established
in the judgment or court order pursuant to Section 22652.
SEC. 3. The increased costs imposed upon the State Teachers'
Retirement System by this act shall be paid from funds in the
Teachers' Retirement Fund under existing provisions of law.