BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  SB 1505|
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                                 THIRD READING
                                        

          Bill No:  SB 1505
          Author:   Burton (D)
          Amended:  8/25/00
          Vote:     21

            
           PRIOR SENATE VOTES NOT RELEVANT
           
           ASSEMBLY FLOOR  : 69-8, 8/28/00 - See last page for vote
           

           SUBJECT  :    State Teachers' Retirement System:  minimum  
          benefits

           SOURCE  :     Author

           
           DIGEST  :     Assembly Amendments  deleted the prior version of  
          the bill relative to the recruitment of and incentives for  
          teachers.

          This bill now 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.

           ANALYSIS  :    Existing law establishes a minimum annual  
          allowance for retired members of the State Teachers'  
          Retirement System (STRS) 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  
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          retirement and an active member at retirement. 

          This bill expands the eligibility of the minimum guaranteed  
          allowance to include retired STRS members who:

          1.Retired before age 55.

          2.Retired as an inactive member.

          3.Retired by March 21, 1974 and had 19.5 years of service.

          4.Retired on or after March 21, 1974 and has sufficient  
            unused sick leave to have a total of 20 years of service.

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

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          STRS estimates that the bill will result in a one-time  
          present value cost of $89 million.  STRS estimates that the  
          implementation costs of the bill will range between  
          $150,000 to $300,000.

           SUPPORT  :   (Verified  8/29/00)

          California Retired Teachers
          United Teachers of Los Angeles

           ASSEMBLY FLOOR  : 
          AYES:  Aanestad, Alquist, Aroner, Bates, Battin, Baugh,  
            Bock, Briggs, Calderon, Campbell, Cardenas, Cardoza,  
            Cedillo, Corbett, Correa, Cox, Cunneen, Davis, Dickerson,  
            Ducheny, Dutra, Firebaugh, Florez, Gallegos, Granlund,  
            Havice, Honda, Jackson, Keeley, Knox, Kuehl, Leach,  
            Lempert, Leonard, Longville, Lowenthal, Machado, Maddox,  
            Maldonado, Margett, Mazzoni, Migden, Nakano, Olberg,  
            Oller, Robert Pacheco, Rod Pacheco, Papan, Pescetti,  
            Reyes, Romero, Scott, Shelley, Steinberg, Strickland,  
            Strom-Martin, Thompson, Thomson, Torlakson, Villaraigosa,  
            Vincent, Washington, Wayne, Wesson, Wiggins, Wildman,  
            Wright, Zettel, Hertzberg
          NOES:  Ackerman, Ashburn, Baldwin, Brewer, House,  







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            Kaloogian, McClintock, Runner


          DLW:cm  8/30/00   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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