Note to affected members: It is important that we have an accurate mailing address
for you. You may check and update your address by logging into
myCalSTRS
or by submitting a change of address form.
It provides CalSTRS with the statutory authority to perform
benefit calculations for members who are part-time community college instructors or adult education
community college instructors who meet all of the following criteria:
- Have service reported to CalSTRS by a California community college employer
in a part-time or adult education assignment prior to July 1, 1996, and
- Whose employer reduced its minimum standard (base hours) for full-time
equivalent to lower than 1,050 hours per school year after July 1, 1996, and
- Who began receiving a CalSTRS benefit after July 1, 1996.
Return to top
The law became effective January 1, 2005.
Return to top
Prior to July 1, 1996, the minimum standard (base hours) for full-time equivalent for
all community college instructors was 1,050 hours per school
year. Effective July 1, 1996, and clarified January 1, 1999, in California Education Code, Section 22138.5,
the minimum standard (base hours) for full-time equivalent for community college part-time and adult education
instructors was changed as follows:
- The minimum standard (base hours) for part-time community college instructors was
reduced to 525 instructional hours per school year, and, if applicable, increased by the number of
paid required office hours.
- The minimum standard (base hours) for adult education community college
instructors was reduced to 875 hours per school year.
For those members whose community college employer reduced or changed their minimum standard (base hours)
used for full-time equivalent after 1996, this resulted in the member accruing service credit at an
accelerated rate because the minimum standard or base hours for full-time equivalent had been reduced.
While these members earned more service credit than before, an unintended consequence of the reduction or
change to the minimum standard or based hours was the fact that the final compensation (compensation
earnable) became reduced at a corresponding rate.
As a result, some members realized a reduced benefit amount or allowance at the time that their monthly
benefit allowance became payable because their final compensation (compensation earnable) had been reduced.
To remedy such a result, AB1586, effective January 1, 2005, requires CalSTRS to calculate what the member's
benefit would have been had the minimum standard or base hours never changed. This first benefit calculation
is based on less service credit but higher final compensation. Once this amount is calculated,
it is then compared to what the normal retirement benefit or allowance would be based on the reduced
or changed based hours. This second benefit calculation is based on more service credit but lower final
compensation. These two benefit calculations are then compared and the member receives whichever benefit
calculation amount is higher.
Return to top
No. The provisions of AB 1586 are specific to part-time and adult educators employed by community college employers.
Return to top
No. Because you retired before your community college employer changed to a lower minimum standard,
all of your service was reported at this same or unchanged minimum standard so your benefit amount
would only consist of one calculation based on this same or unchanged minimum standard.
Return to top
Yes. It is important to realize that 525 hours (for part-time community college instructors) and
875 hours (for adult education community college instructors) are only minimum standards.
Return to top
No. Only service you performed after July 1, 1996, under a reduced standard will be recalculated.
Return to top
Vesting requirements are applied to the service credit as reported by your employer. If you are eligible
for an AB 1586 benefit comparison calculation, you maintain your vested status as long as you have at least
five years of total service credit before the AB1586 calculation. Even if the service credit falls below
the vesting requirements as a result of the AB1586 calculation, you will still maintain the same vested status.
However, the lower service credit resulting from the AB 1586 recalculation will be used to determine
your final compensation.
Return to top
On October 28th, 2006, CalSTRS processed over 6,800 AB 1586 eligible accounts for members in benefit status.
- If the AB1586 comparison and recalculation of your account resulted in an increased
benefit, you were due an increased monthly benefit and a retroactive lump-sum payment. The lump-sum
payment represented the underpayments retroactive to the effective date of your benefit. CalSTRS sent
you the increased monthly benefit and lump sum payment during the first week of November 2006. CalSTRS
also sent you two related letters: a benefit adjustment letter to notify you of the increased benefit
and another letter to show you the results of the comparison calculation.
- If the AB1586 comparison and recalculation of your account did not result in an increased
benefit, your monthly benefit amount did not change. CalSTRS sent you a letter during the first week of
November 2006 to notify you of this finding and show you the results of the comparison calculation.
Return to top
For those AB 1586 eligible member accounts that were unable to be systematically processed, CalSTRS will
perform a manual review of these accounts over the next few months. Once this manual review is complete
these member accounts will receive letters notifying them of the results of the AB 1586 benefit
comparison calculation.
It's important we have an accurate mailing address for you. You may check your address by logging into
myCalSTRS
and updating your address or by submitting a
change of address form.
Return to top
No. Because the AB 1586 benefit comparison calculation requires CalSTRS to obtain individualized
and member specific information from community college employers, the AB 1586 benefit comparison
calculation is unable to be performed by a Benefits Counselor or CalSTRS web calculator.
The AB 1586 benefit comparison calculation must be performed systematically or manually on an
individual, case-by-case basis as the member specific information is obtained from the
community college employers.
Return to top
No. The AB 1586 benefit comparison calculations are performed for eligible members as they
apply for retirement. Because each member may have different or individual reasons for
choosing a specific retirement date, CalSTRS cannot recommend or choose an individual
retirement date for members but encourages each member meet with a
Benefits Counselor
or attend a pre-retirement workshop
at least six months before retiring.
Return to top
|
