BILL NUMBER: SB 39	AMENDED
	BILL TEXT

	AMENDED IN SENATE   MARCH 9, 1999

INTRODUCED BY   Senator Baca

                        DECEMBER 7, 1998

   An act to add  Sections 24205.5, 44928.5, and 87489
  Section 24203.6 to the Education Code, relating
to the State Teachers' Retirement System.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 39, as amended, Baca.  State Teachers' Retirement System. 
   The existing State Teachers' Retirement Law provides that members
with 30 or more years of credited service receive increases in their
retirement allowance.
   This bill would provide additional increases for members with 29
or more and 31 or more years of credited service who retire on and
after January 1, 2000.   
   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  
  SECTION 1.  This act shall be known and may be cited as the Career
Teacher Incentive Act of 1999.
  SEC. 2.  Section 24203.6 is added to the Education Code, to read:
   24203.6.  In addition to the increase prescribed by Section
24203.5, the percentage of final compensation used to compute the
allowance pursuant to Section 24202.5 or 24203 of a member retiring
on or after January 1, 2000, who has 29 or more years of credited
service, shall be increased by one-tenth of 1 percentage point, and
the percentage of final compensation used to compute the allowance
pursuant to Section 24202.5 or 24203 of a member retiring on or after
January 1, 2000, who has 31 or more years of credited service, shall
be further increased by another one-tenth of 1 percentage point
provided that the sum of the percentage of final compensation used to
compute the allowance in Section 24202.5 or 24203, including any
adjustments for retiring before the normal retirement age, and the
additional percentages provided by this section does not exceed 2.40
percent.    _____________________________________  All matter
omitted in this version  of the bill appears in the bill as
introduced in the Senate,  December 7, 1998 (JR 11)
____________________________________