BILL NUMBER: AB 1933	AMENDED
	BILL TEXT

	AMENDED IN SENATE   JUNE 15, 2000
	AMENDED IN ASSEMBLY   MAY 26, 2000

INTRODUCED BY   Assembly Members Strom-Martin and Shelley
   (Coauthors:  Assembly Members Cardoza, Cedillo, and Mazzoni)
   (Coauthor: Senator Karnette)

                        FEBRUARY 15, 2000

   An act to add Sections 22334, 24203.6, 24205.5, and 87489 to the
Education Code, relating to the State Teachers' Retirement System.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1933, as amended, Strom-Martin.  State Teachers' Retirement
System: benefits.
   The State Teachers' Retirement Law provides that members with 30
or more years of credited service receive increases in their
retirement allowance.
   This bill would provide additional increases for members with 29
or more and 31 or more years of credited service who retire on and
after January 1, 2001.
   Under the State Teachers' Retirement Law, service retirement
allowances for members, age 60 or over, are calculated based on years
of credited service and specified percentages, up to 2.4%, of the
member's final compensation, as defined.  Existing law prescribes
reduced allowances, as specified, for members who retire prior to age
60.
   This bill would provide that, if agreed to by the employer and
employee representatives, the service retirement allowance of any
member, age 55 or older, shall be based on 2.4% of the member's final
compensation if the sum of the member's age and years of credited
service equals or exceeds 85.
   The bill would also require the Teachers' Retirement Board to
conduct a study on the feasibility of basing pensions on years of
service and final compensation with no age factor, except minimum
retirement age, and to report its findings to the Legislature on or
before July 1, 2001.
   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.  This act shall be known and may be cited as the Career
Teacher Incentive Act of 2000.
  SEC. 2.  Section 22334 is added to the Education Code, to read:
   22334.  (a) The board shall conduct a study and prepare a report
on the feasibility of basing pensions for its members on years of
service and final compensation with no age factor, except for minimum
retirement age.  The study shall consider the effects of making this
change within the system's existing fiscal resources, including any
surplus, applying these changes prospectively to new members, and
identifying how these changes would affect members.
   (b) The board shall submit a written report with its findings to
the Legislature on or before July 1, 2001.
  SEC. 3.  Section 24203.6 is added to the Education Code, to read:
   24203.6.  In addition to the increase prescribed by Section
24203.5, the percentage of final compensation used to compute the
allowance pursuant to Section 24202.5 or 24203 of a member retiring
on or after January 1, 2001, who has 29 or more years of credited
service, shall be increased by one-tenth of 1 percentage point, and
the percentage of final compensation used to compute the allowance
pursuant to Section 24202.5 or 24203 of a member retiring on or after
January 1, 2001, who has 31 or more years of credited service, shall
be further increased by another one-tenth of 1 percentage point
provided that the sum of the percentage of final compensation used to
compute the allowance in Section 24202.5 or 24203, including any
adjustments for retiring before the normal retirement age, and the
additional percentages provided by this section and Section 24203.5
does not exceed 2.50 percent.
  SEC. 4.  Section 24205.5 is added to the Education Code, to read:
   24205.5.  (a) Notwithstanding any other provision of this part,
any member who is age 55 years or older may retire on or after
January 1, 2001, and receive an annual allowance equal to 2.4 percent
of final compensation for each year of credited service, if the sum
of the member's age in years and fractions thereof and the years and
fractions thereof of the member's credited service equals or exceeds
85.
   (b) The benefits made available pursuant to this section shall be
available to all members employed by the school district, community
college district,  or  county superintendent of
schools , or state education agency  who meet the conditions
set forth in this section.
   (c) Nothing in this section shall be deemed to limit the benefits
to which a member may be entitled under Sections 24203.5 and 24203.6.

   (d) This section shall not apply to a school district, community
college district,  or  county superintendent of
schools  , or state education agency  nor its employees
until it is agreed to in a written memorandum of understanding
entered into by the employer and representatives of employees.
  SEC. 5.  Section 87489 is added to the Education Code, to read:
   87489.  (a) The annual service retirement allowance for any member
employed by the district age 55 years or older who retires under the
State Teachers' Retirement System on or after January 1, 2001, shall
be calculated pursuant to Section 24205.5 if the sum of the member's
age in years and fractions thereof and the years and fractions
thereof of the member's credited service equals or exceeds 85.
   (b) The benefits made available pursuant to this section shall be
available to all members employed by the community college district
who meet the conditions set forth in this section.
   (c) This section shall not apply to a community college district
nor its employees until it is agreed to in a written memorandum of
understanding entered into by the employer and representatives of
employees.