1999 Legislation

Assembly Bill

AB 81 (Cuneen) – Post-Retirement Earnings

Provides an exemption to the post-retirement earnings limit for members who retired for service on or before July 1, 1998, and are subsequently employed by a high school to teach math and science from July 1, 2000, to July 1, 2002. Also authorizes a 50 percent tax credit through 2003 for qualified expenses, as defined, incurred in lending qualified employees to public high schools, community colleges, or vocational institutions for the purpose of teaching math and science.

Assembly Bill

AB 335 (Mazzoni) – Post-Retirement Earnings Limit

Clarifies and conforms the existing earnings limit exemption for retired teachers, who returned to the classroom as a result of the K-3 Class Size Reduction Program, to include the recently authorized Grade 9 Class Size Reduction Program and the future expansions of the Class Size Reduction Programs authorized by Part 28 of the Education Code.

  • Version: Chaptered (Chapter 40, Statutes of 1999)
  • Sponsor: Teachers’ Retirement Board
  • Location: Signed by Governor
  • Board Position: Sponsor

CalSTRS Analysis:

As Amended 3/23/1999

Assembly Bill

AB 596 (Honda) – Purchase of Service Credit

As introduced, would have authorized a member of the Defined Benefit Program to purchase up to three years of service credit for time served as a volunteer in the Peace Corps or the Volunteers In Service To America program. The bill also would have specified that such credit can not be purchased if the member received or is eligible to receive credit for the same time in the Cash Balance Benefit Program, or another retirement system. The amendments of April 27, 1999, removed reference to CalSTRS.

Assembly Bill

AB 819 (PER&SS) – Internal Revenue Code 415 Compliance

Establishes the Replacements Benefit Program in compliance with Internal Revenue Code Section 415. Rescinds the election CalSTRS made exempting certain members from IRC 415 benefit limits. Also requires CalSTRS to restore benefits to certain members previously limited by federal law.

  • Version: Chaptered (Chapter 465, Statutes of 1999)
  • Sponsor: Teachers’ Retirement Board
  • Location: Signed by Governor
  • Board Position: Sponsor

CalSTRS Analysis:

As Amended 6/03/1999

As Amended 5/06/1999

As Introduced 2/24/1999

Assembly Bill

AB1X 12 (Runner) – “Rule of 85″

Would have permitted a member of the Defined Benefit Program to retire for service on or after July 1, 2000, as early as age 55 without the reduction for early retirement, provided the sum of the member’s age and service credit is at least 85.

  • Version: Introduced 1/19/1999
  • Sponsor: Author
  • Location: Assembly
  • Board Position: Support

CalSTRS Analysis:

As Amended 1/19/1999

Senate Bill

SB 833 (Ortiz) – Benefit Enhancements

Would have extended the benefit enhancements enacted in 1999 to members of the Defined Benefit Program who retired or received their first check in 1998. Also would have increased the benefits of those members who are currently retired, but return to service for one year and whose total credited service equals or exceeds 30 years to reflect the “career bonus” in their entire allowance.

  • Version: Enrolled 9/07/1999
  • Sponsor: ACSA, CFT, CTA, CRTA, FACCC
  • Location: Vetoed by Governor
  • Board Position: Support

CalSTRS Analysis:

Senate Bill

SB 1245 (Hayden) – Investments in Corporations Owing Compensation for WW II Slave Labor

Authorizes any World War II slave labor or forced labor victim, or heir of the victim, to bring a court action in California to recover compensation for labor performed, against any entity or successor in interest who received the benefit of that labor. Requires CalSTRS to monitor and report until 12/31/2010, on investments in companies that do business in California that owe compensation to victims of slave labor from 1929 to 1945.