BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2839
                                                                  Page  1

          Date of Hearing:   April 12, 2000

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY 
                                  Lou Correa, Chair
                  AB 2839 (Firebaugh) - As Amended:  April 11, 2000
           
          SUBJECT  :   State Teachers' Retirement System: benefits.

           SUMMARY  : Specifically,  this bill  provides a 2% at age 55 service  
          retirement allowance to a member of the State Teachers'  
          Retirement System (CalSTRS) who retires on or after January 1,  
          2001.

           EXISTING LAW  provides that retirement allowances of CalSTRS  
          member be calculated based on a 2% at age 60 retirement benefit  
          formula.  The 2% factor is reduced for members retiring prior to  
          age 60.  The current factor for those members retiring at age 55  
          is 1.4%.  

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   Legislation was passed last year that improved the  
          retirement benefits for state members and school classified  
          members of the Public Employees' Retirement System.  The  
          retirement formula for these members changed from a 2% at age 60  
          formula to a 2% at age 55 formula.

          Supporters of this bill believe that career teachers should not  
          receive lesser retirement benefits than school classified  
          employees or state employees.  Supporters also point out that  
          CalSTRS now has sufficient surplus to pay for this benefit  
          increase.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support  

          California Federation of Teachers (Sponsor)
          California Teachers Association

           Opposition  

          None on file.
           








                                                                 AB 2839
                                                                  Page  2

          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. /  
          (916)319-3957