BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1692|
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THIRD READING
Bill No: SB 1692
Author: Ortiz (D)
Amended: 5/3/00
Vote: 27 - Urgency
SENATE PUBLIC EMP. & RET. COMMITTEE : 4-1, 5/8/00
AYES: Ortiz, Karnette, Lewis, Soto
NOES: Haynes
SENATE APPROPRIATIONS COMMITTEE : 8-0, 6/12/00
AYES: Johnston, Bowen, Burton, Karnette, Kelley, Leslie,
Perata, Vasconcellos
NOT VOTING: Alpert, Escutia, Johnson, McPherson, Mountjoy
SUBJECT : State teachers' retirement: reinstatement
SOURCE : California Retired Teachers Association
California Teachers Association
California Federation of Teachers
Faculty Attempting to Improve Retirement
DIGEST : This bill provides, to certain members who
retired before January 1, 1999, the State Teachers'
Retirement System benefit enhancements currently available
only to those who retired after January 1, 1999, if the
State Teachers' Retirement System member who retired before
January 1, 1999 reinstates to active service for at least
one year, and subsequently retires with more than 30 years
of service or over age 60.
ANALYSIS : Existing State Teachers' Retirement System
CONTINUED
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(STRS) law provides that a member who has reinstated from
retirement to active teaching may, after one year,
subsequently retire a second time. Upon the subsequent
retirement, the member will receive the sum of:
1.The original STRS allowance the member was receiving at
the time of reinstatement.
2.The allowance for the second period of service, using the
age factor at the time of the second retirement, and the
compensation received during the second period of
service.
This bill provides that a retired STRS member who
reinstates to active teaching for at least one year, and
who subsequently retires after reinstatement with the
following:
1.a total of at least 30 years STRS service credit shall
receive a STRS benefit that is recalculated entirely to
include the "career bonus" enhancements (enacted in
Chapter 1006 of 1998), and/or
2.over age 60 shall receive a STRS benefit that is
recalculated entirely to include the augmented "age
factor" (enacted in Chapter 966 of 1998), subtracting
from their actual age the amount of time they were
retired and receiving STRS benefits before reinstatement
Shall receive a maximum factor of 2.4% per years of
STRS-covered service as a result of this bill (i.e., a STRS
member who retired at age 61-1/2 ["age factor" = 2.2%] who
also has 30 years of service or more ["career bonus" =
.2%], totaling a maximum of 2.4%.
Prior Legislation and Background
AB 1150 (Prenter), Chapter 966, Statutes of 1998 , increased
the maximum benefit factor of 2% at age 60 to 2.4% at age
63 for members who retire after January 1, 1999.
AB 1102 (Knox), Chapter 1006, Statutes of 1998 , (1)
extended eligibility to receive credit at retirement for
unused sick leave to those who become STRS members after
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July 1, 1980, and who retire on or after January 1, 1999,
and (2) provided a "career bonus" enhancement of .2% for
members with 30 or more years of credited service who
retire after January 1, 1999.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02
2002-03 Fund
Benefit enhancement $400 $700
$800 STRF
SUPPORT : (Verified 6/12/00)
California Retired Teachers Association (co-source)
California Teachers Association (co-source)
California Federation of Teachers (co-source)
Faculty Attempting to Improve Retirement (co-source)
Association of Retired Teachers
Delta Kappa Gamma Society
TSM:cm 6/14/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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