BILL ANALYSIS
AB 1933
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1933 (Strom Martin)
As Amended August 31, 2000
Majority vote
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|ASSEMBLY: | |(June 1, 2000) |SENATE: |34-4 |(August 31, |
| | | | | |2000) |
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(vote not relevant)
Original Committee Reference: P.E.,R. & S.S.
SUMMARY : Increases the monthly retirement allowances for
retired members of the State Teachers' Retirement System
(CalSTRS) with 30 or more years of service credit, as specified.
The Senate amendments delete the Assembly version of the bill,
and instead:
1)Increase the monthly retirement allowances for retired CalSTRS
members with 30 or more years of service credit as follows:
a) Members with 30 years of credited service will receive
an additional $200.
b) Members with 31 years of credited service will receive
an additional $300.
c) Members with 32 or more years of credited service will
receive an additional $400.
2)Provides that this increase will also apply to a nonmember
spouse, as specified.
EXISTING LAW provides that the retirement allowances for CalSTRS
members shall be calculated based upon an age factor (plus a
career bonus of .2% if the member has 30 or more years of
service) multiplied by the years of service multiplied by the
member's final compensation. Additionally, current law allows
CalSTRS members to retire prior to age 60 but the member's age
factor is reduced accordingly. Current law also specifies that
the maximum age factor a CalSTRS member may currently receive is
AB 1933
Page 2
2.4%.
AS PASSED BY THE ASSEMBLY , this bill established a "Rule of 85"
retirement option, improved the current career bonus incentive
for members of CalSTRS, and required the Teachers' Retirement
Board (TRB) to conduct a study on the feasibility of moving to a
service based retirement formula
FISCAL EFFECT : According to CalSTRS, the present value cost of
this bill would be $1.8 billion.
COMMENTS : Supporters of the bill contend that "It would benefit
career educators who started teaching soon after college but are
too young under current law to receive a livable pension".
Additionally, supporters state that "AB 1933 would acknowledge
and encourage years of teaching. It de-emphasizes retirement
age as a component in computing retirement."
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957 FN:
0007222