BILL NUMBER: SB 39 AMENDED BILL TEXT AMENDED IN SENATE JANUARY 12, 2000 AMENDED IN SENATE APRIL 19, 1999 AMENDED IN SENATE MARCH 9, 1999 INTRODUCED BY SenatorBacaAlpert (Coauthor: Senator Karnette) DECEMBER 7, 1998 An act toadd Section 24203.6 toamend Section 24203.5 of, and to add Section 24203.6 to, the Education Code, relating to the State Teachers' Retirement System. LEGISLATIVE COUNSEL'S DIGEST SB 39, as amended,BacaAlpert . 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 , up to a specified maximum . This bill would increase that specified maximum, provide additional increases for members with 29 or more and 31 or more years of credited service who retire on and after January 1,20002001, and make related changes . 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. This act shall be known and may be cited as the Career Teacher Incentive Act of19992000 . SEC. 2. Section 24203.5 of the Education Code is amended to read: 24203.5. (a) The percentage of final compensation used to compute the allowance pursuant to Section 24202.5, 24203, or 24205 of a member retiring on or after January 1, 1999, who has 30 or more years of credited service, excluding service credited pursuant to Section 22714, 22715, or 22717, shall be increased by two-tenths of 1 percentage point, provided that the sum of the percentage of final compensation used to compute the allowance in Section 24202.5, 24203, or 24205, including any adjustments for retiring before the normal retirement age, and the additional percentage provided by this section and Section 24203.6 does not exceed2.402.50 percent. For purposes of establishing eligibility for the increased allowance pursuant to this section only, credited service shall include credited service that a court has ordered be awarded to a nonmember spouse pursuant to Section 22652. A nonmember spouse shall also be eligible for the increased allowance pursuant to this section if the member had 30 or more years of credited service on the date the parties separated, as established in the judgment or court order pursuant to Section 22652. (b) Nonqualified service credit for which contributions pursuant to Section 22826 were made in a lump sum on or after January 1, 2000, or for which the first installment was made on or after January 1, 2000, shall not be included in determining the eligibility for an increased allowance pursuant to this section. (c) The amendments made to subdivision (a) in the first year of the 1999-2000 Regular Session are declaratory of existing law. SEC. 3. 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 1,20002001 , 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 1,20002001 , 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 and Section 24203.5 does not exceed2.402.50 percent.