BILL NUMBER: AB 1933 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 18, 2000
AMENDED IN SENATE AUGUST 7, 2000
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, Lempert,
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 and funded by the employer, as
specified , the service retirement allowance of any member, age
55 or older, shall be based on 2.4% an
agreed percentage, up to 2.5%, 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, excluding service credited pursuant to Section 22714, 22715,
22717, or 22826, 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. For
purposes of establishing eligibility for the increased allowance
pursuant to this section only, credited service shall include
credited service that a court has ordered to be awarded to a
nonmember spouse pursuant to Section 22652. A nonmember spouse shall
also be eligible for the increased allowance pursuant to this
section if the member has 30 or more years of credited service on the
date the parties separated, as established in the judgment or court
order pursuant to Section 22652.
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, 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, 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. this part, any member
who is employed by a school district, community college district,
county superintendent of schools, or state education agency and who
retires on or after January 1, 2001, shall receive a retirement
allowance calculated pursuant to subdivision (b), if all of the
following conditions are satisfied:
(1) The school district, community college district, or county
superintendent of schools has, pursuant to Chapter 10.7 (commencing
with Section 3540) of Division 4 of Title 1 of the Government Code,
or, in the case of a member employed by a state education agency, the
Department of Personnel Administration has, pursuant to Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1 of the
Government Code, entered into a written agreement with an exclusive
representative that makes this section applicable to all of its
represented members, in which case this section shall apply to any
member employed by the employer who retires during the period of time
the written agreement with the exclusive representative is in
effect.
(2) The member is 55 years of age or any older age specified by
the written agreement and the total of the member's age in years and
fractions thereof and the member's credited service in years and
fractions thereof equals or exceeds 85.
(3) The employer has transmitted to the retirement fund, in a
manner and time period acceptable to the board, (A) an amount
determined by the board that equals the actuarial equivalent of the
difference between the allowance the member shall receive pursuant to
this section and the allowance the member would have received
pursuant to Sections 24202.5 and 24203.5 and (B) an amount determined
by the board that equals the actuarial equivalent of the difference
between the purchasing power protection supplemental payment the
member shall receive based on the member's allowance calculated
pursuant to this section and the purchasing power protection
supplemental payment the member would have received based on the
member's allowance calculated pursuant to Sections 24202.5 and
24203.5. The payment for the purchasing power protection
supplemental payment shall be deposited in the Supplemental Benefit
Maintenance Account established by Section 22400 and shall be subject
to Sections 24414 and 24415.
(4) The employer has transmitted to the retirement fund the
administrative costs incurred by the system to implement this
section, as determined by the board.
(b) The retirement allowance payable pursuant to this section
shall be equal to a percentage, between 2 and 2.5 percent, of final
compensation per year of credited service. The applicable percentage
shall be specified in the written agreement and applied equally to
all members employed by the school district, community college
district, county superintendent of schools, or state education agency
who meet the conditions set forth in subdivision (a).
(c) The benefits made available pursuant to this section shall be
available to all members employed by the school district, community
college district, county superintendent of schools, or state
education agency who meet the conditions set forth in subdivision
(a).
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.
87489. (a) Notwithstanding any other provision of law, any member
of the Defined Benefit Program of the State Teachers' Retirement
System who is employed by a community college district or state
education agency and who retires on or after January 1, 2001, shall
receive a retirement allowance calculated pursuant to subdivision
(b), if all of the following conditions are satisfied:
(1) The community college district has, pursuant to Chapter 10.7
(commencing with Section 3540) of Division 4 of Title 1 of the
Government Code, or, in the case of a member employed by a state
education agency, the Department of Personnel Administration has,
pursuant to Chapter 10.3 (commencing with Section 3512) of Division 4
of Title 1 of the Government Code, entered into a written agreement
with an exclusive representative that makes this section applicable
to all of its represented members, in which case this section shall
apply to any member employed by the employer who retires during the
period of time the written agreement with the exclusive
representative is in effect.
(2) The member is 55 years of age or any older age specified by
the written agreement and the total of the member's age in years and
fractions thereof and the member's credited service in years and
fractions thereof equals or exceeds 85.
(3) The employer has transmitted to the Teachers' Retirement Fund,
in a manner and time period acceptable to the Teachers' Retirement
Board, (A) an amount determined by the board that equals the
actuarial equivalent of the difference between the allowance the
member shall receive pursuant to this section and the allowance the
member would have received pursuant to Sections 24202.5 and 24203.5
and (B) an amount determined by the board that equals the actuarial
equivalent of the difference between the purchasing power protection
supplemental payment the member shall receive based on the member's
allowance calculated pursuant to this section and the purchasing
power protection supplemental payment the member would have received
based on the member's allowance calculated pursuant to Sections
24202.5 and 24203.5. The payment for the purchasing power protection
supplemental payment shall be deposited in the Supplemental Benefit
Maintenance Account established by Section 22400 and shall be subject
to Sections 24414 and 24415.
(4) The employer has transmitted to the Teachers' Retirement Fund
the administrative costs incurred by the system to implement this
section, as determined by the Teachers' Retirement Board.
(b) The retirement allowance payable pursuant to this section
shall be equal to a percentage, between 2 and 2.5 percent, of final
compensation per year of credited service. The applicable percentage
shall be specified in the written agreement and applied equally to
all members employed by the community college district or state
education agency who meet the conditions set forth in subdivision
(a).
(c) The benefits made available pursuant to this section shall be
available to all members employed by the community college district
or state education agency who meet the conditions set forth in
subdivision (a).