BILL ANALYSIS
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THIRD READING
Bill No: AB 821
Author: Assembly Pub. Employ., Retire. & Social Security
Committee
Amended: 8/31/00 in Senate
Vote: 21
ASSEMBLY FLOOR : 68-8, 6/1/99 - See last page for vote
SUBJECT : Retirement
SOURCE : California Federation of Teachers
California Teachers Association
United Teachers of Los Angeles
DIGEST : This bill changes the definition of "final
compensation" for those members of the State Teachers'
Retirement System with 25 years of creditable service from
the highest average annual compensation earnable by a
member during any period of three consecutive school years
to any period of 12 consecutive years.
ANALYSIS : The present value of the total long-term cost
for members of the State Teachers' Retirement System (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 percent of their contract time was
spent in direct classroom instruction. The statute
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provided that the benefit be subject to collective
bargaining and that it apply to all teachers in that
district.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02
2002-03 Fund
1 year final comp -- $361 million
annually -- STRF
OPPOSITION : (Verified 7/12/99)(Unable to verify at time
of writing)
Unknown
ARGUMENTS IN SUPPORT : Supporters state that this bill
creates a basis of determining final compensation
comparable to that used for the State Public Employees'
Retirement System state employees. Additionally,
proponents contend this bill helps improve the adequacy of
school employee retirement benefits which have
traditionally lagged behind those of other public
employess.
ASSEMBLY FLOOR : 68-8, 6/1/99
AYES: Alquist, Aroner, Ashburn, Bates, Battin, Baugh, Bock,
Briggs, Calderon, Campbell, Cardenas, Cardoza, Cedillo,
Corbett, Correa, Cox, Cunneen, Davis, Dickerson, Ducheny,
Dutra, Firebaugh, Florez, Floyd, Frusetta, Gallegos,
Hertzberg, Honda, House, Jackson, Keeley, Knox, Kuehl,
Leach, Lempert, Leonard, Longville, Lowenthal, Machado,
Maddox, Maldonado, Margett, Mazzoni, Migden, Nakano,
Olberg, Rod Pacheco, Papan, Pescetti, Reyes, Romero,
Shelley, Soto, Steinberg, Strickland, Strom-Martin,
Thompson, Thomson, Torlakson, Vincent, Washington, Wayne,
Wesson, Wiggins, Wildman, Wright, Zettel, Villaraigosa
NOES: Aanestad, Ackerman, Baldwin, Kaloogian, McClintock,
Oller, Robert Pacheco, Runner
AB 821
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TSM:cm 8/30/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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