BILL ANALYSIS
AB 1736
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Date of Hearing: April 12, 2000
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Lou Correa, Chair
AB 1736 (Ducheny) - As Introduced: January 6, 2000
SUBJECT : State teachers' retirement: postretirement
compensation.
SUMMARY : Specifically, this bill exempts from the current
State Teachers' Retirement System (CalSTRS) post-retirement
earnings limitation CalSTRS members who retired before July 1,
2000 and who are subsequently employed to provide direct
remedial instruction to pupils in K-12 education.
EXISTING LAW allows retired members of CalSTRS to earn up to
$19,050 in 1999-2000 for public school employment. The earnings
limitation is adjusted annually to reflect changes in the
Consumer Price Index. Any creditable earnings in excess of this
amount result in a dollar-for-dollar reduction in the member's
retirement allowance.
Existing law also provides an exemption from this limit if the
member retired prior to July 1, 1998, and is employed by a
school district to provide direct classroom instruction in any
statutorily authorized class size reduction program or to
temporarily fill a position vacated by a teacher who transferred
to a classroom in the same district because of the Class Size
Reduction program. This exemption sunsets on July 1, 2002.
An additional exemption exists for a CalSTRS member who retired
for service and who is appointed as a trustee or administrator
or who is employed on an emergency basis to fill an
administrative position. This exemption sunsets on July 1,
2003.
FISCAL EFFECT : According to CalSTRS, this bill would result in
no material costs to the system due to the anticipated small
number of retired teachers that would exceed the earnings
limitation under the provisions of this bill.
COMMENTS : According to the author, this bill will help
alleviate the problem of a shortage of credentialed teachers to
teach remedial classes by expanding the pool of available
AB 1736
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teachers. According to the author, "The demand to teachers in
general, and specifically for remedial education, has increased
in recent years due to many factors, including policies
introduced by the Legislature and approved by the Governor. For
example, class size reduction has increased the demand for
teachers for the early grades and lead to a shortage of
credentialed teachers in a number of low-income and rural and
isolated areas." The author also points out that bills ending
the practice of social promotion and requiring high school exit
exams have increased the need for qualified and experienced
teachers to help raise the academic performance of
under-achieving students.
CalSTRS points out that the Education Code does not currently
define remedial instruction, although it is generally understood
to mean supplemental instruction intended to bring students up
to grade level achievement. In order to maintain consistency in
how this exemption is applied, CalSTRS is recommending that the
bill be amended to specify what constitutes remedial
instruction.
There are three other bills this year that would impact the
CalSTRS earnings limitation. The first is AB 1733, Wildman,
which would eliminate the current earnings limitation entirely.
The second bill, AB 141, Knox, would expand the current earnings
limitation exemption for members filling administrative
positions on an emergency basis. The third bill, SB 1505,
Alarcon, would exempt CalSTRS members who retired prior to 2000
and who return to provide direct classroom instruction to pupils
in grades K-12 or to provide support to new teachers, as
specified, from the current earnings limitation.
REGISTERED SUPPORT / OPPOSITION :
Support
California Teachers Association
Fresno Unified School District
Opposition
None on file.
Analysis Prepared by : Karon Green / P.E., R. & S.S. /
(916)319-3957
AB 1736
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