BILL ANALYSIS
SB 1692
Page 1
SENATE THIRD READING
SB 1692 (Ortiz)
As Amended August 25, 2000
2/3 vote. Urgency
SENATE VOTE :36-1
PUBLIC EMPLOYEES 7-0 APPROPRIATIONS 20-0
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|Ayes:|Correa, Pescetti, Briggs, |Ayes:|Migden, Campbell, |
| |Dutra, Firebaugh, Honda, | |Ackerman, Alquist, |
| |Knox | |Aroner, Ashburn, Brewer, |
| | | |Cedillo, Corbett, Davis, |
| | | |Kuehl, Maldonado, Papan, |
| | | |Romero, Shelley, Thomson, |
| | | |Wesson, Wiggins, Wright, |
| | | |Zettel |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Provides enhanced retirement benefits to members of
the State Teachers' Retirement System (CalSTRS) who retired for
service and reinstate and perform at least one additional year
of service before retiring again. Specifically, this bill :
1)Makes various legislative findings and declarations regarding
the shortage of teachers in California and the need to provide
an incentive for currently retired teachers to reinstate,
thereby helping to remedy current teacher shortages.
2)Provides that a CalSTRS member who retired for service and who
reinstates to active service and performs at least one year of
creditable service before retiring again will receive
retirement benefits recalculated to include the career bonus
if they have 30 or more years of service credit. Those
members over age 60 would also receive benefits recalculated
to include the augmented age factor, subtracting from their
actual age the amount of time they were previously retired.
EXISTING LAW provides that a CalSTRS 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:
SB 1692
Page 2
1)The original CalSTRS 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.
FISCAL EFFECT : According to CalSTRS, this bill would result in
a present value benefit cost of approximately $9 million. This
is based on the assumption that 500 members will return to
service and work for one year.
COMMENTS : 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 CalSTRS members who retire after January 1, 1999.
Additionally, AB 1102 (Knox), Chapter 1006, Statutes of 1998,
provided a "career bonus" enhancement of .2% for CalSTRS members
with 30 or more years of service credit who retire after January
1, 1999.
SB 833 (Ortiz) of 1999, would have allowed members of CalSTRS
who retired in 1998 to have their retirement allowance
recalculated to reflect the benefit enhancements enacted during
1998 and currently available to members who retired after
January 1, 1999. Governor Davis vetoed this bill.
Supporters point out that, "Future estimates are that California
will need 300,000 teachers over the next decade. The pool of
fully credentialed retired educators in California represents a
valuable resource. To address the growing shortage of both
qualified teachers and principals, SB 1693 encourages retirees
to return to staff our schools."
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN: 0006323