BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1933|
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THIRD READING
Bill No: AB 1933
Author: Strom-Martin (D), et al
Amended: 8/31/00 in Senate
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 3-1, 6/26/00
AYES: Ortiz, Karnette, Soto
NOES: Haynes
SENATE APPROPRIATIONS : 9-2, 8/31/00
(ROLL CALL NOT AVAILABLE)
SENATE FLOOR : 34-4, 8/31/00
AYES: Alarcon, Alpert, Bowen, Brulte, Burton, Chesbro,
Costa, Dunn, Escutia, Figueroa, Hayden, Hughes, Johnson,
Johnston, Karnette, Kelley, Leslie, McPherson, Monteith,
Murray, O'Connell, Ortiz, Peace, Perata, Polanco,
Poochigian, Rainey, Schiff, Sher, Solis, Soto, Speier,
Vasconcellos, Wright
NOES: Haynes, Knight, Lewis, Mountjoy
ASSEMBLY FLOOR : 55-20, 6/1/00 - See last page for vote
SUBJECT : State Teachers' Retirement System
SOURCE : California Teachers Association
Faculty Association of California Community
Colleges, Inc.
DIGEST : This bill establishes a "longevity bonus" for
teachers who retire on or after January 1, 2001, and have,
CONTINUED
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prior to January 2011, 30 or more years of credited
service. The benefit will provide specified teachers with
an increase in their monthly benefit allowance to $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.
ANALYSIS : Existing law provides that the retirement
allowances for CalSTRS embers 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 State
Teachers' Retirement System (STRS) 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 STRS member may currently receive is 2.4
percent.
This bill:
1.Increases the monthly retirement allowances for retired
STRS 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 31 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02
2002-03 Fund
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Benefit enhancement -- Total long-term cost of $1.8
billion -- STRF
SUPPORT : (Unable to verify at time of writing)
California Teachers Association (source)
Faculty Association of California Community Colleges, Inc.
(source) Association of California School Administrators
California Federation of Teachers
County Superintendents of Schools
Los Angeles Unified School District
Riverside County Schools Advocacy Association
Small School Districts' Association
ARGUMENTS IN SUPPORT : Supporters of this 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."
ASSEMBLY FLOOR :
AYES: Alquist, Aroner, Battin, Bock, Briggs, Calderon,
Cardenas, Cardoza, Cedillo, Corbett, Correa, Cox,
Cunneen, Davis, Ducheny, Dutra, Firebaugh, Florez, Floyd,
Frusetta, Gallegos, Havice, Honda, Jackson, Keeley, Knox,
Kuehl, Lempert, Longville, Lowenthal, Machado, Maldonado,
Mazzoni, Migden, Nakano, Robert Pacheco, Papan, Pescetti,
Reyes, Romero, Scott, Shelley, Steinberg, Strom-Martin,
Thomson, Torlakson, Villaraigosa, Vincent, Washington,
Wesson, Wiggins, Wildman, Wright, Zettel, Hertzberg
NOES: Aanestad, Ackerman, Ashburn, Bates, Campbell,
Dickerson, Granlund, House, Kaloogian, Leach, Leonard,
Maddox, Margett, McClintock, Olberg, Oller, Rod Pacheco,
Runner, Strickland, Thompson
DLW:jk 9/18/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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