BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1694|
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THIRD READING
Bill No: SB 1694
Author: Ortiz (D)
Amended: As introduced
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 5-0, 4/24/00
AYES: Ortiz, Haynes, Karnette, Lewis, Soto
SENATE APPROPRIATIONS COMMITTEE : 9-0, 5/15/00
AYES: Johnston, Bowen, Burton, Karnette, Kelley, Leslie,
Mountjoy, Perata, Vasconcellos
NOT VOTING: Alpert, Escutia, Johnson, McPherson
SUBJECT : Public employees' retirement: membership
election
SOURCE : State Department of Education
DIGEST : This bill allows members of the State Teachers'
Retirement System who become employed by the State of
California to remain in the State Teachers' Retirement
System, and allows members of the Public Employees'
Retirement System who become employed in service that
requires membership in the State Teachers' Retirement
System to remain in the Public Employees' Retirement
System.
ANALYSIS : Existing State Teachers' Retirement System
(STRS) and Public Employees' Retirement System (PERS) law
provide:
CONTINUED
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1.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.
2.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.
3.Pursuant to Chapter 838 of 1997, 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.
This bill:
1.Allows any certificated teacher member of STRS, who
becomes employed by the state, to stay in STRS instead of
joining PERS,
2.Allows any state member of PERS, who becomes employed as
a certificated teacher and performs services that
requires STRS membership, to elect to remain in PERS.
Background
According to the Senate Public Employment and Retirement
Committee analysis, 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 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
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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.
Prior Legislation
SB 227 (Solis), Chapter 838, Statutes of 1997 , permitted
vested STRS members (those with at least five years of
STRS-covered service) who were employed by a community
college district and who subsequently became employed by
the state community colleges (which requires membership in
PERS as a state employee) to elect to remain in STRS.
Comments
According to the Senate Public Employment and Retirement
Committee analysis, this bill addresses a recruitment and
retention problem experienced by the State Department of
Education (DOE) when DOE attempts 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 to work for
DOE 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, Statutes of 1997).
This bill simply makes the provisions of Chapter 838 apply
statewide.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02
2002-03 Fund
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Program costs -- unknown
-- STRF
Program costs -- unknown
-- STRF
There is also a STRS-PERS reciprocal provision available to
employees who change positions only within the California
local public school system. The Senate Appropriations
Committee staff indicates that this bill will apply the
reciprocal provisions to employees of any state agency in
any member category including state miscellaneous, patrol,
peace officer/firefighter, or safety.
This bill provides an employee 60 days to make the
election; however, the election will become effective on
the first day of employment in the new position.
SUPPORT : (Verified 5/18/00)
State Department of Education (source)
California Faculty Association
Association of California School Administrators
TSM:cm 5/18/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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