BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
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          |                               |AB 1933  (Strom-Martin)     |
          |-------------------------------+----------------------------|
          |                               |                            |
          |-------------------------------+----------------------------|
          |Hearing Date: 8/30/2000        |Amended: 8/18/2000          |
          |                               |& as proposed to be amended |
          |                               |                            |
          |-------------------------------+----------------------------|
          |Consultant: Maureen Brooks     |Policy Vote: P. E. & R. 3-1 |
          |                               |                            |
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          BILL SUMMARY:   AB 1933 establishes a "longevity bonus" for  
          teachers who retire on or after January 1, 2001, and have,  
          prior to January 1, 2011, 30 or more years of credited  
          service.  The benefit will provide specified teachers with  
          an increase in their monthly benefit allowance of $200 if  
          they have 30 years of credited service, $300 for those with  
          31 years of service and $400 for members with 32 or more  
          years of credited service.

                              Fiscal Impact (in thousands)
           
          Major Provisions                      2000-01             2001-02          
           2002-03                     Fund  
          
          Benefit enhancement   ------total long-term cost of  $1.8  
          billion----    STRF

          
          STAFF COMMENTS:  SUSPENSE FILE. 



          Existing law provides a career bonus of .2% for members of  
          STRS with 30 or more years of credited service. 

          Staff notes that the prior version of this bill established  
          a "Rule of 85" retirement option and increased the career  
          bonus.  Those provisions have been deleted from the bill.