BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: SB 1694
Deborah V. Ortiz, Chair Hearing date: April 24, 2000
SB 1694 (Ortiz) as introduced 2/22/00 FISCAL: YES
PERS AND STRS: ALLOW MEMBERS WHO CHANGE EMPLOYMENT TO STAY
IN THEIR CURRENT RETIREMENT SYSTEM, UNDER SPECIFIED
CIRCUMSTANCES
HISTORY :
Sponsor: State Department of Education
Prior legislation: see below
SUMMARY :
Would:
a) allow a certificated teacher member of STRS who becomes
employed by the state to stay in STRS instead of joining
PERS, and
b) allow a state member of PERS who becomes employed as a
certificated teacher and performs service that requires
STRS membership to stay in PERS.
BACKGROUND :
1) The committee is advised that existing STRS and PERS law
provide that a teacher who is a member of STRS and who
becomes employed in a position requiring PERS membership by
the same or a different school district, community college
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district or county superintendent of schools may elect to
continue STRS membership .
Alternatively, a school member of PERS who changes jobs to a
position requiring STRS membership within the same or a
different school district, community college district or
county superintendent of schools may elect to continue PERS
membership .
The STRS-PERS retirement system election initially was a
reciprocal provision that was available to employees who
change employment in positions covered by STRS or PERS only
within the California public school system. THUS, TEACHERS
WHO COME TO WORK FOR THE STATE ARE REQUIRED TO JOIN PERS .
2) Chapter 838, Statutes of 1997 (SB 227-Solis) permitted
vested STRS members (those with at least 5 years of
STRS-covered service) who were employed by a community
college district and who subsequently became employed by the
state Community Colleges (which would require membership in
PERS as a state employees) to elect to remain in STRS.
ANALYSIS :
1) Existing STRS and PERS law provide:
a) that a teacher who is a member of STRS and who becomes
employed in a position requiring PERS membership by the
same or a different school district, community college
district or county superintendent of schools may elect to
continue STRS membership ,
b) that a school member of PERS who changes jobs to a
position requiring STRS membership within the same or a
different school district, community college district or
county superintendent of schools may elect to continue PERS
membership , and
c) pursuant to Chapter 838 of 1997, that a STRS member who
subsequently was employed by the state Community Colleges
in a position requiring PERS membership may elect to remain
in STRS, and vice versa.
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2) This bill would:
a) allow any certificated teacher member of STRS who
becomes employed by the state to stay in STRS instead of
joining PERS, and
b) allow any state member of PERS who becomes employed as
a certificated teacher and performs service that requires
STRS membership to elect to stay in PERS.
COMMENTS :
1) The committee is advised that this bill would address a
recruitment and retention problem experienced by the state
Department of Education when the Department tries to hire
experienced teachers to work for the state. Because the
teachers may be nearing retirement age, they may want to
maintain their STRS membership in order to maximize their
impending STRS retirement benefit.
Because existing law requires teachers who come work to for
the Department of Education to join PERS, their STRS
retirement, in some instances, could be adversely affected.
The Legislature has already recognized this problem by
permitting the state Board of Governors of the Community
Colleges to hire teachers and maintain their STRS membership
(Chapter 838 of 1997).
This bill simply makes the provisions of Chapter 838 apply
statewide.
2) SUPPORT :
California Faculty Association (CFA)
Association of California School Administrators (ACSA)
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American Federation of State, County and Municipal
Employees (AFSCME)
3) OPPOSITION :
None to date.
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