BILL ANALYSIS
SB 1505
Page 1
SENATE THIRD READING
SB 1505 (Burton)
As Amended August 24, 2000
Majority vote
SENATE VOTE :Vote not relevant
PUBLIC EMPLOYEES 4-0 APPROPRIATIONS
16-4
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|Ayes:|Correa, Pescetti, |Ayes:|Migden, Alquist, Aroner, |
| |Briggs, Honda | |Cedillo, Corbett, Davis, |
| | | |Kuehl, Maldonado, Papan, |
| | | |Romero, Shelley, Thomson, |
| | | |Wesson, Wiggins, Wright, |
| | | |Zettel |
| | | | |
|-----+-----------------------+-----+------------------------------|
| | |Nays:|Campbell, Ackerman, Ashburn, |
| | | |Brewer |
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SUMMARY : Expands eligibility for the minimum guaranteed
allowance enacted last year in SB 713 (Burton), Chapter 632,
Statutes of 1999, 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.
SB 1505
Page 2
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.
COMMENTS : According to proponents, "Currently, some 25,000
elderly career teachers receive CalSTRS pensions of about $800
per month. SB 713 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.
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN: 0006325