BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                          AB821  (Correa)
          
          Hearing Date:8/30/2000          Amended:1/10/2000
                                                                       
                   & as proposed to be amended                   
          Consultant: Maureen Brooks          Policy Vote:P. E. & R.  
          3-0                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          
          AB 821 changes the definition of "final compensation" for  
          those members of STRS with 25 years of creditable service  
          from the highest average annual compensation earnable by a  
          member during any period of 3 consecutive school years to  
          any period of 12 consecutive months.

                              Fiscal Impact (in thousands)
           
          Major Provisions            2000-01             2001-02              
           2002-03            Fund  
          
          1 year final comp.                 ---------$361 million  
          annually---------------    STRF
          
          STAFF COMMENTS:  SUSPENSE FILE.
          
          The present value of the total long-term cost for members  
          of STRS is approximately $4 billion.

          Current law allows one year final compensation for STRS  
          members who have 25 years of creditable service who retire,  
          become disabled, or die after June 30, 1990 provided that,  
          during the last ten years of employment with the same  
          employer, at least 60% of their contract time was spent in  
          direct classroom instruction.  That statute provided that  
          the benefit be subject to collective bargaining and that it  
          apply to all teachers in that district.