BILL NUMBER: AB 1933	AMENDED
	BILL TEXT

	AMENDED IN SENATE   AUGUST 31, 2000
	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)   Honda,
Lempert, and Mazzoni) 
    (Coauthors:  Senators Johnston, Karnette, McPherson, Ortiz,
and Vasconcellos) 

                        FEBRUARY 15, 2000

    An act to add Sections 22334, 24203.6, 24205.5, and 87489
to   An act to add Section 24203.6 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 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  , as specified,
 for  those  members  with 29 or more and 31
  who have 30  or more years of credited service
 prior to 2011 and  who retire  for service  on
 and   or  after January 1, 2001.  

   Under the 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 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  

  SECTION 1.  Section 24203.6 is added to the Education Code, to
read:
   24203.6.  (a) In addition to the amount otherwise payable pursuant
to this chapter, a member who (1) retires for service on or after
January 1, 2001, (2) has, prior to January 1, 2011, 30 or more years
of credited service, excluding service credited pursuant to Sections
22714, 22715, 22717, and 22826 but including any credited service
that a court has ordered be awarded to a nonmember spouse pursuant to
Section 22652, and (3) is receiving an allowance subject to Section
24203.5, shall receive a monthly increase in the allowance, prior to
any modification pursuant to Section 24300, in the amount identified
in the following schedule for the number of years of the member's
credited service at the time of retirement, excluding service
credited pursuant to Sections 22714, 22715, 22717, and 22826 but
including any credited service that a court has ordered be awarded to
a nonmember spouse pursuant to Section 22652:  


    30 years of credited service ..............   $200
    31 years of credited service ..............   $300
    32 or more years of credited service ......   $400
 
   (b) This section also shall apply to a nonmember spouse, if the
member is eligible for the allowance increase pursuant to subdivision
(a) upon his or her retirement for service and had at least 30 years
of credited service, excluding service credited pursuant to Section
22714, 22715, 22717, or 22826, on the date the parties separated, as
established in the judgment or court order pursuant to Section 22652.

   (c) The allowance increase provided under this section shall not
be subject to Sections 24415 and 24417, but shall be subject to
Section 22140.   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 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) 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).                                ____
CORRECTIONS Heading -- Lines 5, 6, and 7.
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