BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 1509|
          |Office of Senate Floor Analyses   |                         |
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                                 THIRD READING
                                        

          Bill No:  AB 1509
          Author:   ---
          Amended:  6/15/00 in Senate
          Vote:     21

            
           ASSEMBLY FLOOR  :  Not relevant
           

           SUBJECT  :    STRS:  2% for tax-deferred savings

           SOURCE  :     Author

           
           DIGEST  :    This bill creates the Defines Benefit Supplement  
          Program for K-12 teachers and community college instructors  
          that diverts 25 percent of the State Teachers' Retirement  
          system, or two percent of payroll, into a tax deferred  
          account that will be available to the teacher upon  
          retirement in a lump sum payment or as an annuity.

           ANALYSIS  :    This bill creates the Defines Benefit  
          Supplement Program for K-12 teachers and community college  
          instructors that diverts 25 percent of the State Teachers'  
          Retirement System (STRS), or two percent of payroll, into a  
          tax deferred account that will be available to the teacher  
          upon retirement in a lump sum payment or as an annuity.

           Comments

           The interest rates for the defined benefit supplement  
          program will be set by the STRS board prior to the  
          beginning of each plan year.

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                                                               AB 1509
                                                                Page  
          2

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Assembly Third Reading analysis, no  
          General Fund effect and no effect to the solvency of STRS,  
          the STRS surplus will absorb the cost of the Defined  
          Benefit Supplement Program.



          TSM:cm  6/15/00   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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