BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2118
                                                                  Page  1

          Date of Hearing:   April 12, 2000

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY 
                                  Lou Correa, Chair
                     AB 2118 (Bock) - As Amended:  April 10, 2000
           
          SUBJECT  :   State Teachers' Retirement System: merger of system.

           SUMMARY  :   Requires the Public Employees' Retirement System  
          (CalPERS) and the State Teachers' Retirement System (CalSTRS) to  
          conduct a study to determine the feasibility of merging CalSTRS  
          into CalPERS.  Specifically,  this bill  :  

          1)Specifies that the study shall include an analysis of and  
            information regarding:

             a)   The benefit structure that would exist after the merger;

             b)   The composition of the board following a merger;

             c)   The effect the merger would have on the retirement fund;

             d)   The method to be used to administer the merger of the  
               two systems; and,

             e)   The financing of the teacher benefits.

          2)Requires that the study be completed and presented to the  
            Legislature on or before December 31, 2001.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   According to the author, "California's retirement  
          systems, CalSTRS and CalPERS, are administratively duplicative  
          with considerable overlap in nearly every administrative  
          aspect."  Additionally, the author states that the benefits  
          provided by the two systems are inequitable citing that teachers  
          pay a higher percentage of their salary into CalSTRS but receive  
          smaller retirement benefits. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support  









                                                                  AB 2118
                                                                  Page  2

          None on file.

           Opposition  

          None on file.
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. /  
          (916)319-3957