BILL NUMBER: AB 1733 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 26, 2000
AMENDED IN ASSEMBLY MARCH 30, 2000
INTRODUCED BY Assembly Member Wildman
(Principal coauthor: Assembly Member Shelley)
(Coauthors: Assembly Members Bock, Keeley, Knox, Leach, Lempert,
Strom-Martin, Washington, Wayne, and Zettel)
(Coauthors: Senators Alpert, Peace, Perata, and Solis)
JANUARY 6, 2000
An act to amend Sections 22461 and 24214 of, and to
repeal Sections 24216 and 24216.5 of, the Education
Section 24214 of the Education Code, relating to the State
Teachers' Retirement System.
LEGISLATIVE COUNSEL'S DIGEST
AB 1733, as amended, 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 , with an exception, eliminate
the postretirement earnings limitation for retired members who
return to work more than 1 year after retirement; increase that
limitation, as specified, for other retired members; and make
related technical changes and 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 22461 of the Education Code is amended to read:
22461. (a) Upon retaining the services of a retired member under
Section 24116 or 24215, the California State University shall do both
of the following:
(1) Advise the retired member of the earnings limitation set forth
in Sections 24116 and 24215.
(2) Maintain accurate records of the retired member's earnings and
report those earnings monthly to the system and the retired member
regardless of the method of payment or the fund from which the
payments were made.
(b) This section shall not be construed to make the California
State University liable for any amount paid to the retired member in
excess of the earnings limitation under any circumstance, including
the failure to inform the retired member that continuation of service
would exceed the limitations.
SEC. 3.
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.
(f)
(e) (1) The postretirement compensation limitation provisions set
forth in this section shall not be applicable to compensation earned
by a member retired for service under this part who has first
returned to work more than one year after the date of retirement.
(2) 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 thirty-six thousand dollars
($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 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, and if that compensation is not exempt from that limitation
under subdivision (e) or any other provisions of law, 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.
SEC. 4. Section 24216 of the Education Code is repealed.
SEC. 5. Section 24216.5 of the Education Code is repealed.