BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1694
                                                                  Page  1

          Date of Hearing:   June 21, 2000

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY 
                                  Lou Correa, Chair
                 SB 1694 (Ortiz) - As Introduced:  February 22, 2000

           SENATE VOTE  :   39-0
           
          SUBJECT  :   Public employees' retirement: membership election

           SUMMARY  : Specifically,  this bill  allows members of the State  
          Teachers' Retirement System (CalSTRS) who become employed by the  
          state to remain in CalSTRS, and allows state members of the  
          Public Employees' Retirement System (CalPERS) who become  
          employed in service that requires membership in CalSTRS to  
          remain in CalPERS.

           EXISTING LAW  allows a CalSTRS member who becomes employed in a  
          position requiring CalPERS membership by the same or a different  
          school district, community college district or county  
          superintendent of schools to elect to continue their membership  
          in CalSTRS.

          Additionally, existing law allows a school member of CalPERS who  
          changes jobs to a position requiring CalSTRS membership within  
          the same or a different school district, community college  
          district or county superintendent of schools to elect to  
          continue their membership in CalPERS.

          Finally, SB 227 (Solis), Chapter 838, Statutes of 1997 allows a  
          vested CalSTRS member who was employed by a community college  
          district to remain in CalSTRS if they were subsequently employed  
          by the state community colleges which would require membership  
          in CalPERS.

           FISCAL EFFECT  :   The cost of this bill is unknown and would  
          depend on the number of members who change jobs which would  
          otherwise necessitate changing membership in retirement systems.

           COMMENTS  :   According to supporters, this bill would address a  
          recruitment and retention problem experienced by the 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 CalSTRS  








                                                                  SB 1694
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          membership in order to maximize their impending CalSTRS  
          retirement benefit.  Because existing law requires teachers who  
          come to work for the Department of Education to join CalPERS,  
          their CalSTRS retirement, in some instances, could be adversely  
          affected.

          Additionally, supporters state that by allowing CalPERS members  
          that become credentialed teachers to continue to earn CalPERS  
          creditable service while teaching provides an additional  
          incentive for these former state employees to enter the  
          classroom. 










































                                                                  SB 1694
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           REGISTERED SUPPORT / OPPOSITION  :

           Support  

          State Department of Education (Sponsor)
          Association of California School Administrators
          American Federation of State, County and Municipal Employees
          California Faculty Association
           
          Opposition  

          None on file.

           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. /  
          (916)319-3957