BILL NUMBER: AB 1733	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Wildman

                        JANUARY 6, 2000

   An act to amend Section 24214 of the Education Code, relating to
the State Teachers' Retirement System.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1733, as introduced, Wildman.  State Teachers' Retirement
System:  postretirement earnings.
   Under the State Teachers' Retirement Law, the service retirement
allowance of a retired member is generally required to be reduced if
the member's postretirement compensation from specified activities
exceeds a certain dollar amount.
   This bill would increase the postretirement earnings limitation,
as specified, and make related findings and declarations.
   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.  The Legislature find and declares:
   (a) As a result of the enactment of the Class-Size Reduction
Program, over 22,000 emergency credentialed teachers are currently
teaching tens of thousands of students across the state.  Because
many of these teachers are minimally qualified and inexperienced, the
quality of instruction for these students has been adversely
affected.
   (b) The average teaching experience of retired teachers in this
state is 27 years.
   (c) Under the State Teachers' Retirement Law, postretirement
earnings of retired teachers are limited, thereby creating a
disincentive for retired teachers to reenter the teaching profession.

   (d) Teachers who retired on or before July 1, 1998, who choose to
reenter the teaching profession under the Class-Size Reduction
Program, and who satisfy other conditions are exempt from those
postretirement earnings limitations.  Since the enactment of this
exemption, over 1,600 retired teachers throughout the state have
returned to teaching, providing approximately 32,000 students with
the benefits of experienced, highly qualified teachers.
   (e) The pool of retired teachers represents a valuable resource.
All California students would benefit if more retired teachers chose
to return to teaching.
  SEC. 2.  Section 24214 of the Education Code is amended to read:
   24214.  (a) A member retired for service under this part may
perform the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
as an employee of an employer, as an employee of a third party, or
as an independent contractor within the California public school
system, but the member shall not make contributions to the retirement
fund or accrue service credit based on compensation earned from that
service.
   (b) The rate of pay for service performed by a member retired for
service under this part as an employee of the employer shall not be
less than the minimum, nor exceed that paid by the employer to other
employees performing comparable duties.
   (c) A member retired for service under this part shall not be
required to reinstate for performing the activities identified in
paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision
(b), of Section 22119.5, as an employee of an employer, as an
employee of a third party, or as an independent contractor within the
California public school system.
   (d) A member retired for service under this part may earn
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in any one school year up to the limitation specified in
subdivision (f) as an employee of an employer, as an employee of a
third party, or an independent contractor, within the California
public school system, without a reduction in his or her retirement
allowance.
   (e) The postretirement compensation limitation provisions set
forth in this section shall not be applicable to compensation earned
for the performance of the activities described in subdivision (a)
for which the employer is not eligible to receive state apportionment
or to compensation that is not creditable pursuant to Section
22119.2.
   (f) The limitation that shall apply to the compensation for
performance of the activities identified in paragraphs (1) to (9),
inclusive, of subdivision (a), or subdivision (b), of Section 22119.5
by a member retired for service under this part either as an
employee of an employer, an employee of a third party, or as an
independent contractor, shall be  fifteen  
thirty-six  thousand dollars  ($15,000)  
($36,000)  , in any one school year, adjusted annually by the
board each July 1 by the annual amount of increase in the All Urban
California Consumer Price Index using December  1989
  1999  as the base.
   (g) If a member retired for service under this part earns
compensation for performing activities identified in paragraphs (1)
to (9), inclusive, of subdivision (a), or subdivision (b), of Section
22119.5 in excess of the limitation specified in subdivision (f), as
an employee of an employer, as an employee of a third party, or as
an independent contractor, within the California public school
system, the member's retirement allowance shall be reduced by the
amount of the excess compensation.  The amount of the reduction may
be equal to the monthly allowance payable but shall not exceed the
amount of the annual allowance payable under this part for the fiscal
year in which the excess compensation was earned.
   (h) The amendments to this section enacted during the 1995-96
Regular Session shall be deemed to have become operative on July 1,
1996.