BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1505
                                                                  Page  1

          Date of Hearing:   August 9, 2000

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY 
                                  Lou Correa, Chair
                    SB 1505 (Burton) - As Amended:  August 7, 2000

           SENATE VOTE  :   Not relevant
           
          SUBJECT  :   State Teachers' Retirement System: minimum benefits.

           SUMMARY  :   Expands eligibility for the minimum guaranteed  
          allowance enacted last year in Chapter 632, Statutes of 1999 (SB  
          713, Burton) that is paid to retired members of the State  
          Teachers' Retirement System (CalSTRS). Specifically,  this bill  :   
           

          1)Expands the eligibility of the minimum guaranteed allowance to  
            include retired CalSTRS members who:

             a)   Retired before age 55;

             b)   Retired as an inactive members;

             c)   Retired by March 21, 1974 and had 19.5 years of service;

             d)   Retired on or after March 21, 1974 and had sufficient  
               unused sick leave to have a total of 20 years of service;  
               or,

             e)   Were disabled prior to retirement, but would have had at  
               least 20 years of service had they worked to age 60.

           EXISTING LAW  establishes a minimum annual allowance for retired  
          members of CalSTRS of $15,000 for those members with 20 years of  
          credited service and increases that amount incrementally per  
          year of service to a maximum of $20,000 for those members with  
          30 or more years of credited service.  In order to be eligible  
          for the minimum allowance, the member had to be at least age 55  
          at retirement and an active member at retirement.

           FISCAL EFFECT  :   CalSTRS estimates that the bill would result in  
          a one-time present value cost of $89 million.  CalSTRS estimates  
          that the implementation costs of the bill would range between  
          $150,000 and $350,000.








                                                                  SB 1505
                                                                  Page  2


           COMMENTS  :   According to proponents, "Currently, some 25,000  
          elderly career teachers receive CalSTRS pensions of about $800  
          per month.  SB 713 (Burton), enacted last year, increased their  
          minimum pensions to $15,000 per year but some teachers did not  
          qualify due to technicalities."  This bill would resolve those  
          technicalities and make additional retirees eligible for the  
          $15,000 minimum allowance.













































                                                                  SB 1505
                                                                  Page  3


           REGISTERED SUPPORT / OPPOSITION  :

           Support  

          California Teachers Association
          California Retired Teachers Association
          United Teachers Los Angeles
           
          Opposition  

          None on file.

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