1997 Legislation

Assembly Bill

AB 373 (Morrissey) – School Employees Retirement

This bill would extend eligibility for an exemption from the post-retirement earnings limitation to retired members who received additional service credit at retirement under the Golden Handshake provisions, subject only to a one-year waiting period.

  • Location: Held in Assembly Appropriations
  • CalSTRS Position: Support
  • Proponents: Orange County Department of Education
  • Opponents: None Known
  • Analysis: As Introduced 02/19/1997
Assembly Bill

AB 686 (Baugh) – Class of Employees: Full Time Equivalent

This bill would add section 22112.6 to the Education Code to provide authority for any County Office of Education, under specified circumstances, to establish two classes of employees for members of the State Teachers’ Retirement System (STRS) Defined Benefit (DB) Plan who are employed in a special education program. The classes of employees would be determined by the number of days required of employees in each class for full-time service.

  • Location: Chapter 572, Statutes of 1997
  • CalSTRS Position: Oppose
  • Proponents: Orange County Department of Education
  • Opponents: Undetermined
  • Analysis: As Introduced 02/26/1999
Assembly Bill

AB 885 (Honda) – Elected STRS Board

This bill would require that the four “teacher” members of the Teachers’ Retirement Board (Board) be elected to the Board from their respective constituencies rather than appointed by the Governor.

  • Location: Vetoed 9/29/1997
  • CalSTRS Position: No Position
  • Proponents: California Teachers’ Association and Association of Retired Teachers (Co-sponsors), California Federation of Teachers, California Retired Teachers’ Association, and Faculty Association of California Community Colleges
  • Opponents: Unknown at this time
  • Analysis: As Introduced 02/27/1997
Senate Bill

SB 227 (Solis) – Community Colleges: Officers and Employees

This bill would permit members of the State Teachers’ Retirement System (STRS) who are employed by a community college district, school district or county superintendent’s office, who subsequently become employed by specified state agencies involved with educational policy to perform duties that require membership in a different public retirement system (e.g., PERS), and meet certain age and service qualifications, to elect in writing within 60 days after the individual’s entry into the new position to remain in STRS.

This bill would similarly allow a member of the Public Employees’ Retirement System (PERS) who is employed by the Board of Governors of the California Community Colleges who subsequently is employed by a community college district to perform duties that require membership in a different public retirement system (e.g. STRS) and meet certain age and service qualifications, to elect in writing within 60 days after the individual’s entry into the new position to remain in PERS.

The bill would also permit the Board of Governors of the California Community Colleges and a community college district or publicly funded community college organization to enter into an agreement for the loan or assignment of an employee to or from the Chancellor’s Office, in accordance with specified conditions.

  • Location:    Chapter 838, Statutes of 1997
  • CalSTRS Position:    Support (Staff Recommendation)
  • Proponents:    Board of Governors of the California Community Colleges (Sponsor)
  • Opponents:    None Known
  • Analysis:    As Amended 06/03/1997

Senate Bill

SB 629 (Karnette) – Eligibility for Disability Benefits

The United Teachers of Los Angeles (UTLA) is proposing amendments to the Education Code to expand eligibility for disability benefits by eliminating the minimum service credit requirement for members applying for a Disability Allowance or Disability Retirement because they were the victim of an unlawful act of bodily injury while performing their official duties.

  • Location: Chapter 386, Statutes of 1997
  • CalSTRS Position: Support, if amended
  • Proponents: United Teachers of Los Angeles (Sponsor)
  • Opponents: Unknown
  • Analysis: As Amended 05/01/1997
Senate Bill

SB 1026 (Schiff) – Purchasing Power Protection Payments

Increases the supplemental purchasing power protection payments from 68.2 percent to 75 percent. The General Fund (GF) will continue to contribute 2.5 percent of prior year STRS member payroll to the Supplemental Benefit Maintenance Account (SBMA) to fund the benefit. Commencing when the SBMA can no longer support funding the benefit at 75 percent (which is estimated to occur in 2014-15), the Board may do any or a combination of the following:

  • Increase the employer contribution rate by no more than 0.25 percent per year
  • Reduce the benefit to an amount which can be funded by the SBMA
  • Use TRF monies if the Board has determined that no unfunded obligation exists based on information provided by the consulting actuary and affirmed by the Director of Finance

The bill provides that the GF contributions to the SBMA required for the 1998-99 fiscal year will be reduced by the total value of the state’s interest in the school lands from the sale of the Elk Hills Naval Petroleum Reserve (approximately $320 million). The bill also requires the Legislature to approve through the Budget Act any increase in the employer contribution rate which may be adopted by the board for the payment of purchasing power benefits.

  • Location: Chapter 939, Statutes of 1997
  • CalSTRS Position: Support
  • Proponents: CRTA, CTA, ACSA, CFT
  • Opponents: Department of Finance; Cal-Tax
  • Analysis: Not Available
Senate Bill

SB 1027 (CalSTRS) – Member Redeposit of Nonmember Spouse Refund

This bill would amend current law to allow a member to redeposit contributions and interest which has been refunded by a former spouse who was awarded a portion of that member’s retirement account in a dissolution or marriage or legal separation.

  • Location: Chapter 569, Statutes of 1997
  • CalSTRS Position: Sponsor
  • Proponents: Unknown
  • Opponents: Unknown
  • Analysis: As Introduced 02/27/1997