BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 1509|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 445-6614         Fax: (916) |                         |
          |327-4478                          |                         |
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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  :    According to the Assembly Third Reading  
          analysis, the interest rates for the defined benefit  
          supplement program will be set by the STRS board prior to  
          the beginning of each plan year.

           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.







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          TSM:cm  6/15/00   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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