BILL NUMBER: SB 39 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Baca
DECEMBER 7, 1998
An act to add Sections 24205.5, 44928.5, and 87489 to the
Education Code, relating to the State Teachers' Retirement System.
LEGISLATIVE COUNSEL'S DIGEST
SB 39, as introduced, Baca. State Teachers' Retirement System.
The existing State Teachers' Retirement Law provides various
service retirement plans under the State Teachers' Retirement System
and provides that, in certain plans, the retirement allowance of
members retiring prior to age 60 years shall be reduced pursuant to
specified schedules.
This bill would add an additional, optional, so-called Rule of 85
service retirement plan that would authorize service retirement for a
member age 55 years or any older age specified by the governing
board, who retires on or after July 1, 2000, with a minimum of 5
years of credited service, without any allowance reduction, subject
to specified conditions, including if the total of the member's age
and credited service is at least 85, and if retirement occurs within
specified periods. The plan would be optional to each employer,
would be applicable to all qualified employees, and would be
effective only if the employer, by formal action, makes specified
determinations and transmits the actuarial equivalent amount of money
and the State Teachers Retirement System's related administrative
costs to the State Teachers Retirement System.
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 24205.5 is added to the Education Code, to
read:
24205.5. (a) Notwithstanding any other provision of this part,
whenever the governing board of a school district or a community
college district or a county superintendent of schools, by formal
action, determines pursuant to Section 44928.5 or 87489 that, because
of impending curtailment of services, or changes in the manner of
performing services, the best interests of the district or county
superintendent of schools would be served by encouraging the
retirement of certificated employees or academic employees and that
the retirement will result in a net savings to the district or county
superintendent of schools or result in the retention of certificated
employees or academic employees, who are credentialed to teach in
teacher shortage disciplines, including, but not limited to,
mathematics and science, any member who is age 55 years or any older
age specified by the governing board and who is employed by that
school district, community college district, or county superintendent
of schools may retire on or after July 1, 2000, and the retirement
allowance shall not be reduced for service retirement at less than
normal retirement age, if all of the following conditions exist:
(1) The total of the member's age in years and fractions thereof
and the years and fractions thereof of the member's credited service
equals or exceeds 85.
(2) The member is credited with five or more years of service and
retires during a period not more than 120 days or less than 60 days,
commencing no sooner than the effective date of the formal action of
the employer, that shall specify the period.
(3) The employer transmits to the retirement fund an amount
determined by the Teachers' Retirement Board that equals the
actuarial equivalent of the difference between the allowance the
member receives pursuant to this section and the amount the member
would have received pursuant to Section 24202 and an amount
determined by the Teachers' Retirement Board that equals the
actuarial equivalent of the difference between the purchasing power
protection supplemental payment the member receives after receipt of
the allowance increase pursuant to this section and the purchasing
power protection supplemental payment the member would have received
without the allowance increase pursuant to this section. The payment
for purchasing power shall be deposited in the Supplemental Benefit
Maintenance Account established by Section 22400 and shall be subject
to Sections 24414 and 24415. The transfer to the retirement fund
shall be made in a manner and time period acceptable to the Teachers'
Retirement Board.
(4) The employer transmits to the retirement fund the
administrative costs incurred by the system in implementing this
section, as determined by the Teachers' Retirement Board.
(5) The employer has considered the availability of teachers to
fill the positions that would be vacated pursuant to this section.
(6) The community college district, school district, or county
superintendent of schools has certified to the Teachers' Retirement
Board, prior to the formal action becoming effective in the district
or the office of the county superintendent of schools, that the net
effect of the formal action will result in no costs to the State
Teachers' Retirement System, the district, the county superintendent
of schools, or the General Fund.
(7) The school district shall demonstrate and certify to the
county superintendent that the action would result in either a net
savings to the school district or a retention of certificated
employees who are credentialed to teach in teacher shortage
disciplines. The county superintendent shall certify to the board,
in a manner acceptable to the board, that projected savings or the
retention of certificated employees as specified can be demonstrated.
Any person who willfully submits a certification in a manner
inconsistent with this section may be subject to prosecution for
fraud, theft, or embezzlement under the Penal Code. The school
district shall reimburse the county superintendent for the costs
resulting from the certification. The county superintendent of
schools may audit, pursuant to Section 42127.6, any school district
that has had a budget disapproval at the beginning of the budget year
or that has received a negative certification under the budget
process.
(8) The county offices of education shall demonstrate and certify
to the Superintendent of Public Instruction that the action would
result in either a net savings to the county office or a retention of
certificated employees who are credentialed to teach in teacher
shortage disciplines. The Superintendent of Public Instruction shall
certify to the board, in a manner acceptable to the board, that
projected savings or the retention of certificated employees as
specified can be demonstrated. Any person who willfully submits a
certification in a manner inconsistent with this section may be
subject to prosecution for fraud, theft, or embezzlement under the
Penal Code.
(9) The community college district shall demonstrate and certify
to the chancellor's office that the action would result in either a
net savings to the community college district or a retention of
academic employees who are credentialed to teach in teacher shortage
disciplines. The chancellor shall certify to the board, in a manner
acceptable to the board, that projected savings or the retention of
academic employees as specified can be demonstrated. Any person who
willfully submits a certification in a manner inconsistent with this
section may be subject to prosecution for fraud, theft, or
embezzlement under the Penal Code. The county superintendent of
schools may audit, pursuant to Section 84040, any community college
district that has had a budget disapproval at the beginning of the
budget year or that has received a negative certification under the
budget process.
(b) The benefits made available pursuant to this section shall be
available to all members employed by the school district, community
college district, or county superintendent of schools who meet the
conditions set forth in this section.
SEC. 2. Section 44928.5 is added to the Education Code, to read:
44928.5. (a) Whenever the governing board of a school district or
a county superintendent of schools, by formal action, determines
that, because of impending curtailment of services, or changes in the
manner of performing services, the best interests of the district or
county superintendent of schools would be served by encouraging the
retirement of certificated employees and that the retirement will
result in a net savings to the district or county superintendent of
schools or result in the retention of certificated employees who are
credentialed to teach in teacher shortage disciplines, including, but
not limited to, mathematics and science, the annual service
retirement allowance of any member employed by the district or the
county superintendent of schools who is age 55 years or any older age
specified by the governing board and who retires on or after July 1,
2000, shall not be reduced pursuant to Chapter 27 (commencing with
Section 24201) of Part 13 for retirement at an age under 60 years, if
all of the following conditions exist:
(1) The total of the member's age in years and fractions thereof
and the years and fractions thereof of the member's credited service
equals or exceeds 85.
(2) The member is credited with five or more years of service
under the State Teachers' Retirement System and retires under the
State Teachers' Retirement System during a period not more than 120
days or less than 60 days, commencing no sooner than the effective
date of the formal action of the district or county superintendent of
schools, that shall specify the period.
(3) The district or county superintendent of schools transmits to
the retirement fund an amount determined by the Teachers' Retirement
Board that equals the actuarial equivalent of the difference between
the allowance the member receives pursuant to Section 24205.5 and the
amount the member would have received pursuant to Section 24202 and
an amount determined by the Teachers' Retirement Board that equals
the actuarial equivalent of the difference between the purchasing
power protection supplemental payment the member receives after
receipt of the allowance increase pursuant to this section and the
purchasing power protection supplemental payment the member would
have received without the allowance increase pursuant to this
section. The payment for purchasing power shall be deposited in the
Supplemental Benefit Maintenance Account established by Section 22400
and shall be subject to Sections 24414 and 24415. The transfer to
the retirement fund shall be made in a manner and time period
acceptable to the Teachers' Retirement Board.
(4) The district or county superintendent of schools transmits to
the retirement fund the administrative costs incurred by the State
Teachers' Retirement System in implementing Section 24205.5, as
determined by the Teachers' Retirement Board.
(5) The governing board of the district or county superintendent
of schools has considered the availability of teachers to fill the
positions that would be vacated pursuant to this section.
(6) The district or county superintendent of schools has certified
to the Teachers' Retirement Board, prior to the formal action
becoming effective in a school district or the office of the county
superintendent of schools, that the net effect of the formal action
will result in no costs to the State Teachers' Retirement System, the
school district, the county superintendent of schools, or the
General Fund.
(7) The school district shall demonstrate and certify to the
county superintendent that the action would result in either a net
savings to the school district or a retention of certificated
employees who are credentialed to teach in teacher shortage
disciplines. The county superintendent shall certify to the Teachers'
Retirement Board, in a manner acceptable to the board, that
projected savings or the retention of certificated employees as
specified can or cannot be demonstrated. Any person who willfully
submits a certification in a manner inconsistent with this section
may be subject to prosecution for fraud, theft, or embezzlement under
the Penal Code. The school district shall reimburse the county
superintendent for the costs resulting from the certification. The
county superintendent of schools may audit, pursuant to Section
42127.6, any school district that has had a budget disapproval at the
beginning of the budget year or that has received a negative
certification under the budget process.
(8) The county office of education shall demonstrate and certify
to the Superintendent of Public Instruction that the action would
result in either a net savings to the county office or a retention of
certificated employees who are credentialed to teach in teacher
shortage disciplines. The Superintendent of Public Instruction shall
certify to the Teachers' Retirement Board, in a manner acceptable to
the board, the projected savings or the retention of certificated
employees as specified can be demonstrated. Any person who willfully
submits a certification in a manner inconsistent with this section
may be subject to prosecution for fraud, theft, or embezzlement under
the Penal Code.
(b) The benefits made available pursuant to this section shall be
available to all members employed by the school district or county
superintendent of schools who meet the conditions set forth in this
section.
SEC. 3. Section 87489 is added to the Education Code, to read:
87489. (a) Whenever the governing board of a community college
district, by formal action, determines that, because of impending
curtailment of services, or changes in the manner of performing
services, the best interests of the district would be served by
encouraging the retirement of academic employees and that the
retirement will result in a net savings to the district or result in
the retention of academic employees who are credentialed to teach in
teacher shortage disciplines, including, but not limited to,
mathematics and science, the annual service retirement allowance of
any member employed by the district age 55 years or any older age
specified by the governing board and who retires under the State
Teachers' Retirement System on or after July 1, 2000, shall not be
reduced pursuant to Chapter 27 (commencing with Section 24201) of
Part 13 for retirement at an age under 60 years, if all of the
following conditions exist:
(1) The total of the member's age in years and fractions thereof
and the years and fractions thereof of the member's credited service
equals or exceeds 85.
(2) The member is credited with five or more years of service
under the State Teachers' Retirement System and retires under the
State Teachers' Retirement System during a period of not more than
120 days or less than 60 days, commencing no sooner than the
effective date of the formal action of the district, that shall
specify the period.
(3) The governing board transmits to the retirement fund an amount
determined by the Teachers' Retirement Board that equals the
actuarial equivalent of the difference between the allowance the
member receives pursuant to Section 24205.5 and the amount the member
would have received pursuant to Section 24202 and an amount
determined by the Teachers' Retirement Board that equals the
actuarial equivalent of the difference between the purchasing power
protection supplemental payment the member receives after receipt of
the allowance increase pursuant to this section and the purchasing
power protection supplemental payment the member would have received
without the allowance increase pursuant to this section. The payment
for purchasing power shall be deposited in the Supplemental Benefit
Maintenance Account established by Section 22400 and shall be subject
to Sections 24414 and 24415. The transfer to the retirement fund
shall be made in a manner and time period acceptable to the Teachers'
Retirement Board.
(4) The governing board transmits to the retirement fund the
administrative costs incurred by the system in implementing Section
24205.5, as determined by the Teachers' Retirement Board.
(5) The governing board of the community college district has
considered the availability of teachers to fill the positions that
would be vacated pursuant to this section.
(6) The community college district has certified to the Teachers'
Retirement Board prior to the formal action becoming effective in the
community college district that the net effect of the formal action
will result in no costs to the State Teachers' Retirement System, the
district, or the General Fund.
(7) The community college district shall demonstrate and certify
to the chancellor's office that the action would result in either a
net savings to the community college district or a retention of
academic employees who are credentialed to teach in teacher shortage
disciplines. The chancellor shall certify to the Teachers'
Retirement Board, in a manner acceptable to the board, that projected
savings or the retention of academic employees as specified can or
cannot be demonstrated. Any person who willfully submits a
certification in a manner inconsistent with this section may be
subject to prosecution for fraud, theft, or embezzlement under the
Penal Code. The county superintendent of schools may audit, pursuant
to Section 84040, any community college district that has had a
budget disapproval at the beginning of the budget year or that has
received a negative certification under the budget process.
(b) The benefits made available pursuant to this section shall be
available to all members employed by the community college district
who meet the conditions set forth in this section.