BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1692|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 445-6614 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 1692
Author: Ortiz (D)
Amended: 8/25/00
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
SENATE FLOOR : 36-1, 6/22/00
AYES: Alarcon, Alpert, Bowen, Brulte, Burton, Chesbro,
Costa, Dunn, Escutia, Figueroa, Hayden, Hughes,
Johannessen, Johnson, Johnston, Karnette, Kelley, Knight,
Leslie, McPherson, Monteith, Morrow, Mountjoy, Murray,
O'Connell, Ortiz, Perata, Poochigian, Rainey, Schiff,
Sher, Solis, Soto, Speier, Vasconcellos, Wright
NOES: Haynes
ASSEMBLY FLOOR : 71-5, 8/28/00 - See last page for vote
SUBJECT : State teachers' retirement: reinstatement
SOURCE : California Retired Teachers Association
California Teachers Association
California Federation of Teachers
Faculty Attempting to Improve Retirement
CONTINUED
SB 1692
Page
2
DIGEST : This bill 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.
Assembly Amendments delete the January 1, 2005 sunset date
and made technical changes.
ANALYSIS : Existing State Teachers' Retirement System
(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:
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.
Prior Legislation and Background
SB 1692
Page
3
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
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
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.
SUPPORT : (Verified 6/12/00) (Unable to reverify at time
of writing)
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
ASSEMBLY FLOOR :
AYES: Ackerman, Alquist, Aroner, Ashburn, Bates, Battin,
Baugh, Bock, Brewer, 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, Runner, Scott,
Shelley, Steinberg, Strickland, Strom-Martin, Thomson,
Torlakson, Villaraigosa, Vincent, Washington, Wayne,
Wesson, Wiggins, Wildman, Wright, Zettel, Hertzberg
SB 1692
Page
4
NOES: Aanestad, Baldwin, House, Kaloogian, McClintock
TSM:cm 8/30/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****