BILL NUMBER: AB 2118	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   MAY 1, 2000
	AMENDED IN ASSEMBLY   APRIL 10, 2000

INTRODUCED BY   Assembly Member Bock

                        FEBRUARY 22, 2000

   An act to add Section 20136 to the Government Code, relating to
public retirement systems.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2118, as amended, Bock.  Public retirement systems:  merger
study.
   Existing law establishes the Public Employees' Retirement Law and
sets forth procedures for its administration and the provision of
benefits to eligible members, under the direction of its board of
administration. Existing law also establishes the State Teachers'
Retirement Law and sets forth procedures for its administration and
the provision of benefits to its eligible members, under the
direction of the Teachers' Retirement Board.
   This bill would require the Board of Administration of the Public
Employees' Retirement System and the Teachers' Retirement Board to
 conduct a study to determine the feasibility of merging the
State Teachers' Retirement System into the Public Employees'
Retirement System.  The bill would require that this study be
completed and presented to the Legislature on or before December 31,
2001   prepare and submit a report to specified
Legislative committees by July 1, 2001, that would evaluate the
benefits or negative consequences of a merger of the respective
retirement systems, recommend whether a feasibility study and
implementation plan for that merger should be prepared, and estimate
the costs of the study.  The bill would provide that, upon the
recommendation of the boards for a feasibility study and
implementation plan, and following review of the report by the
Legislative committees, as specified, the feasibility study and
implementation plan would be submitted to the Legislature within one
year  .
   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.  Section 20136 is added to the Government Code, to read:

   20136.  (a) The board and the Teachers' Retirement  Board
shall conduct a study to determine the feasibility of merging the
State Teachers' Retirement System into the Public Employees'
Retirement System.
   (b) The study conducted pursuant to subdivision (a) shall include,
but not be limited to, all of the following:
   (1) An analysis of the benefit structure following a merger.
   (2) The composition of the board following a merger.
   (3) The effect of a merger on the retirement fund.
   (4) The methods to be used to administer the merger of the two
systems.
   (5) Financing of benefits for members of the former State Teachers'
Retirement System.
   (c) The board and the Teachers' Retirement Board shall complete
the study and present their findings to the Legislature on or before
December 31, 2001.   Board shall evaluate the operations
of the State Teachers' Retirement System and the Public Employees'
Retirement System to determine whether there are increased costs,
foregone benefits, or other significant negative consequences because
the retirement systems operate as separate entities, including
negative impacts on services to members and beneficiaries,
investments, and administration.
   (b) The board and the Teachers' Retirement Board shall prepare a
report on their evaluation, together with findings on any significant
benefits that would be anticipated to result from a merger of the
two retirement systems into a single entity, or any significant
anticipated negative consequences of that merger.  The report shall
also contain the boards' recommendation on whether a complete
feasibility study and implementation plan for merging the two systems
should be prepared and the boards' estimate of the anticipated cost
of preparing that study and plan.  The report shall be submitted to
the Joint Legislative Budget Committee, and the fiscal committees and
appropriate policy committees of the Assembly and Senate on or
before July 1, 2001.
   (c) If the report recommends that a complete feasibility study and
implementation plan for merging the systems is warranted, no action
shall be taken with respect to that recommendation for thirty days
after the report is submitted to the Legislative committees.  During
that period, those committees may conduct hearings to review and
provide recommendations with respect to the proposed study and plan.
The study and plan shall then be completed and submitted to the
Legislature within one year following the expiration of that thirty
day period.