BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2456|
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THIRD READING
Bill No: AB 2456
Author: Wright (D), et al
Amended: 8/31/00 in Senate
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 5-0, 6/26/00
AYES: Ortiz, Haynes, Karnette, Lewis, Soto
SENATE APPROPRIATIONS : 10-0, 8/31/00
(ROLL CALL NOT AVAILABLE)
SENATE FLOOR : 40-0, 8/31/00
AYES: Alarcon, Alpert, Bowen, Brulte, Burton, Chesbro,
Costa, Dunn, Escutia, Figueroa, Hayden, Haynes, Hughes,
Johannessen, Johnson, Johnston, Karnette, Kelley, Knight,
Leslie, Lewis, McPherson, Monteith, Morrow, Mountjoy,
Murray, O'Connell, Ortiz, Peace, Perata, Polanco,
Poochigian, Rainey, Schiff, Sher, Solis, Soto, Speier,
Vasconcellos, Wright
ASSEMBLY FLOOR : 77-0, 6/1/00 - See last page for vote
SUBJECT : State teachers' retirement
SOURCE : Faculty Association of California Community
Colleges
United Teachers of Los Angeles
DIGEST : This bill allows members of the State Teachers'
Retirement System who retire on or before January 1, 2002,
and are at least 60 years of age, to elect to receive a
CONTINUED
AB 2456
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2
lump-sump payment and a reduced monthly allowance. The
provisions will sunset January 1, 2011.
ANALYSIS : The State Teachers' Retirement Law prescribes
service retirement benefits for members of the Defined
Benefit Program of the State Teachers' Retirement Plan,
which benefits are paid in the form of a monthly allowance.
This bill establishes a Retirement Option Program that
allows members of the Defined Benefit Program to elect to
receive a lump-sum payment and a reduced monthly allowance,
as specified. The bill directs the board of administration
of the State Teachers' Retirement System (STRS) to
implement the program no later than January 1, 2002, except
as specified. The bill's provisions will be repealed on
January 1, 2011.
The lump-sum payment will not exceed the lesser of the
following amounts:
1.The actuarial present value of the difference between the
monthly service retirement allowance currently payable
and an amount equal to two percent of the member's final
compensation multiplied by the number of years of
credited service and divided by 12.
2.Fifteen percent of the actuarial present value of the
monthly allowance payable.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
There will not be any program costs to this benefit since
the members' monthly allowance will be actuarially reduced
to reflect the lump-sum payment.
SUPPORT : (Unable to verify at time of writing)
Faculty Association of California Community Colleges
(co-source)
United Teachers Los Angeles (co-source)
Small School Districts Association
AB 2456
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ASSEMBLY FLOOR
AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn,
Baldwin, Bates, Battin, Baugh, Bock, Briggs, Calderon,
Campbell, Cardenas, Cardoza, Cedillo, Corbett, Correa,
Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,
Firebaugh, Florez, Frusetta, Gallegos, Granlund, Havice,
Honda, House, Jackson, Kaloogian, Keeley, Knox, Kuehl,
Leach, Lempert, Leonard, Longville, Lowenthal, Machado,
Maddox, Maldonado, Margett, Mazzoni, McClintock, Migden,
Nakano, Olberg, Oller, Robert Pacheco, Rod Pacheco,
Papan, Pescetti, Reyes, Romero, Runner, Scott, Shelley,
Steinberg, Strickland, Strom-Martin, Thompson, Thomson,
Torlakson, Villaraigosa, Vincent, Washington, Wayne,
Wesson, Wiggins, Wildman, Wright, Zettel, Hertzberg
DLW:kb 9/19/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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