BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 1694
Author: Ortiz (D)
Amended: 8/7/00
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
SENATE FLOOR : 39-0, 5/24/00 (Consent)
AYES: Alarcon, Alpert, Bowen, Brulte, Burton, Chesbro,
Costa, Dunn, Escutia, Figueroa, Hayden, Haynes, Hughes,
Johannessen, Johnson, Johnston, Karnette, Kelley, Knight,
Leslie, Lewis, McPherson, Monteith, Morrow, Mountjoy,
Murray, O'Connell, Ortiz, Peace, Perata, Polanco,
Poochigian, Rainey, Sher, Solis, Soto, Speier,
Vasconcellos, Wright
ASSEMBLY FLOOR : 69-0, 8/10/00 (Passed on Consent) - See
last page for vote
SUBJECT : Public employees' retirement: membership
election
SOURCE : State Department of Education
DIGEST : This bill allows (1) members of the State
Teachers' Retirement system who become employed by the
CONTINUED
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State Department of Education, as specified, and (2)
members of the State Public Employees' Retirement System
employed by the State Department of Education who are
subsequently employed to perform service that requires
membership in the State Teachers' Retirement System.
Assembly Amendments add language that relates this bill to
the State Department of Education.
ANALYSIS : Existing State Teachers' Retirement System
(STRS) and Public Employees' Retirement System (PERS) law
provide:
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
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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
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
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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
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 8/11/00)
State Department of Education (source)
Association of California School Administrators
American Federation of State, County and Municipal
Employees
California Faculty Association
California Teachers Association
OPPOSITION : (Verified 8/11/00)
Department of Finance
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ARGUMENTS IN SUPPORT : According to supporters, this bill
would address a recruitment and retention problem
experienced by the DOE when it tries to hire experienced
teachers to work for the state. Because the teachers may
be nearing retirement age, they may want to maintain 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.
Additionally, supporters state that by allowing PERS
members that become credentialed teachers to continue to
earn PERS creditable service while teaching provides an
additional incentive for these former state employees to
enter the classroom.
ARGUMENTS IN OPPOSITION : The State Department of
Finance, in opposition, states:
"This bill would allow CalPERS' State members in the
patrol, peace officer/firefighter, and safety retirement
categories, which provide a higher level of benefits than
CalPERS' miscellaneous retirement category or STRs, to
continue to earn service credit in their current retirement
category while performing service, which would otherwise be
creditable under STRS.
"Retirement benefits are subject to collective bargaining
and should be considered together with other compensation
items in the collective bargaining process."
ASSEMBLY FLOOR :
AYES: Aanestad, Ackerman, Alquist, Aroner, Ashburn, Bates,
Battin, Baugh, Bock, Brewer, Briggs, Calderon, Campbell,
Cardenas, Cardoza, Cedillo, Corbett, Correa, Cox,
Cunneen, Davis, Dickerson, Ducheny, Dutra, Florez, Floyd,
Gallegos, Granlund, Havice, House, Jackson, Keeley,
Kuehl, Leach, Lempert, Leonard, Longville, Lowenthal,
Machado, Maddox, Margett, Mazzoni, McClintock, Nakano,
Olberg, Oller, Robert Pacheco, Rod Pacheco, Papan,
Pescetti, Reyes, Romero, Scott, Shelley, Steinberg,
Strickland, Strom-Martin, Thomson, Torlakson,
Villaraigosa, Vincent, Washington, Wayne, Wesson,
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Wiggins, Wildman, Wright, Zettel, Hertzberg
TSM:cm 8/14/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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