1992 State Legislation



AB-75 *
Intro 12/4/90
Employer Notification Would have: 1) required employers to provide membership information to all full-time, part-time and substitute employees; 2) deleted reference to a repealed section in the TRL; and 3) included other provisions (not affecting STRS) that would have authorized contracting agencies under PERS to offer their employees up to an additional 4 years of service credit. The Governor was concerned that this bill would require him to issue a “statewide executive order” to trigger the effectiveness. Conditioning a local agency’s legislative action on the Governor’s issuance of an executive order is a cumbersome and inappropriate exercise of the Governor’s executive powers. Governor Veto (9/30/92)
(Polanco, et al)
Intro 2/12/91
Public Contracts (Certification Requirements) Creates a standardized certification program and permits all state and local agencies to use the criteria under this program to certify minority, women and disadvantaged business enterprises for contracts that are federally, state or locally funded. 1329 (9/30/92), effective 1/1/93; Position: NO POSITION
Intro 3/5/91
Extend SR Formula Would have increased the benefit factor from 2.1% at age 61; 2.25% at age 63; and 2.5% at age 65 for STRS members retiring after 6/30/93 with 20 or more years of service credit and whose employer has opted for this benefit. The Governor was not in favor of enhancing a retirement benefit with resources that could otherwise be provided for the classroom. Sponsored by CTA Governor Veto (7/20/92); Position: SUPPORT
Intro 3/7/91
Defined Contribution Study Would have required the TRB to conduct a study of defined contribution benefits and establish a defined contribution “account” that complies with IRC section 415 requirements. Sponsored by Assoc. Of CA Life Insurance Died in Senate (8/19/92); Position: OPPOSE
(Campbell, et al)
Intro 3/7/91
Additional Service Credit As an urgency measure, authorizes the Trustees of the CA State University to grant four years of additional service credit to eligible employees who retire during the 1992-93 fiscal year. Note: STRS’ records indicate that fewer than five members will be affected by this legislation. Sponsored by CA State University 450 (8/6/92), effective immediately; Position: NEUTRAL
Intro 3/8/91
Community Property Nonprobate Transfers Amends various provisions of the Probate Code relating to the nonprobate transfer of community property, including transfers of property under the terms of a pension plan. Sponsored by CA Law Revision Commission 51 (5/8/92), effective 1/1/93; Position: NO POSITION
(Margolin, et al)
Intro 3/15/91
Investments (Arab Boycott) Prohibits state trust funds from making new or additional investments in business forms or financial institutions that engage in discriminatory business practices that are “in furtherance of or in compliance with the Arab League’s economic boycott of Israel.” Under the “secondary boycott,” which this bill targets, companies doing business in Arab nations must agree not to do business in Israel. Note: STRS is required to begin divestiture of prohibited investments on 1/1/95 and reduce such investments by one-third annually until 1/1/98 when divestiture is complete. 1351(9/30/92), effective 1/1/94; Position: OPPOSE
Intro 1/6/92
Member Home Loans Would have required the TRB to study the advantages and disadvantages of offering low interest rate home loans to STRS members. The Governor didn’t see any merit to using TRF monies to finance reduced mortgage home loans which has previously been found to be a violation of both the CA Constitution and other statues to which the TRB is subject to. Governor Veto (8/12/92); Position: OPPOSE
Intro 1/13/92
Investments (Public Retirement Systems Investments Advisors) Would have authorized STRS/PERS to consider joint venture, subcontracting, and investment-related relationships with women, minority, and disabled veteran business enterprises for purposes of meeting the statewide participation goals. The Governor stated that investment agreements are not service contracts under the Public Contract Code and should not be reported as if they were. Governor Veto (7/27/92); Position: SUPPORT
Intro 1/15/92
Contract Award Requirements Would have required state agencies to award a contract to the lowest responsible bidder fully meeting the minority and women business enterprises contract participation goals or having the highest aggregate percentage of those goals. Died in Senate 8/19/92; Position: OPPOSE
Intro 1/27/92
Investments (South Africa Relief) As an urgency measure, excludes firms engaged in famine relief activities in Southern Africa from the South Africa divestiture provisions Chapter 1254/86 (AB-134, Waters.) 1238 (9/29/92), effective immediately; Position: SUPPORT
AB-2513 *
Intro 2/6/92
Definition Revision Would have revised the definitions of “compensation” and “salary for use in the calculation of a STRS retirement benefit. Died in house of origin (5/26/92)
AB-2538 *
Intro 2/6/92
Family Care Leave Allows members to purchase service credit for time spent on an approved family care leave of up to four months. Note: This bill enabled STRS to implement the provisions of Chapter 462/1991 (AB-77, Moore) which required employers of 50 or more employees, including school district, to grant specified family care leave. 1272 (9/30/92), effective 1/1/93
(Eastin, et al)
Intro 2/10/93
Charter Schools Would have provided the general requirements for the establishment of charter public schools. The Governor determined that this bill fails to embrace the basic ingredients of the charter school concept (e.g., freedom from the state regulation and employee organizational control, and choice on the part of parents, pupils, teachers, and administrations). Governor Veto (9/20/92); Position: NEUTRAL – Deferred to the Secretary of Child Development and Education
(Elder, et al)
Intro 2/13/92
Federal Compliance (Rollovers) Authorizes public pension plans including STRS to make rollovers directly to another eligible retirement plan. A new federal law requires retirement plans to withhold 20% on the taxable portion of an eligible distribution that is not rolled over directly to a qualified plan. Allows a member to request that a lump-sum distribution be made directly to another eligible plan and thus avoid the 20% withholding tax now required when the distribution is made directly to the member. 1047 (9/27/92), effective 1/1/93
Intro 3/6/91
System Funding As an urgency measure, clarifies the methodology for calculating the Elder Full Funding contributions due STRS on prior calendar year payroll. 703 (9/14/92), effective immediately
(Hart, et al)
Intro 2/10/92
Charter Schools Authorizes the establishment of not more than 100 charter schools in the state, each of which will be treated as a school district for school funding guarantee purposes. These schools will be exempt from laws governing regular school districts except for those that choose to participate in STRS. When a charter school chooses to participate in STRS, all employees of that charter school who qualify for STRS membership will be covered under STRS. All provisions of the TRL will apply in these participating charter schools as if they were a public school in the school district that granted the charter. 781 (9/20/92), effective 1/1/93; Position: NEUTRAL
(L. Greene)
Intro 2/20/92
Investments (In-lieu Fees) Excludes STRS’ real estate investments from in-lieu fees and requires instead that lessees of STRS owned property pay regular property taxes based on their possessory interest. 1158 (9/29/92), effective 1/1/93; Position: SUPPORT
Intro 2/20/92
STRS/PERS Service Credit (Legislators) Would have allowed STRS/PERS members to purchase service credit for time spent in the CA Legislature during a service break. The Governor determined this bill contradicts the provisions of Proposition 140 (1990) which prohibits the accrual of pension benefits as a result of service in the Legislature. On or after November 1990, no Legislative Retirement System exists other than Social Security. Governor Veto (9/30/92); Position: NEUTRAL
SB-1884 *
(C. Green)
Intro 2/21/92
Multiple Retirements (Betts) As an urgency measure, provides the methods to be used in the calculation of a retirement allowance for members who previously received either a disability or service retirement benefit. 1165 (9/29/92), effective immediately
SB-1885 *
(C. Green)
Intro 2/21/92
Federal Compliance – New Survivor Benefits & Disability Retirement Programs (Betts) As an urgency measure, establishes new survivor benefits and disability programs for all new members entering STRS on or after 10/16/92. Also authorizes persons who were STRS members on 10/15/92, to elect to participate in the new programs. These changes bring STRS into compliance with the federal Older Workers’ Benefit Protection Act passed by Congress on 10/16/90.
Coverage A: $5,000 lump sum death payment.
Coverage B: $20,000 lump sum death payment.
1166 (9/29/92), effective 10/16/92
SB-1886 *
(C. Green) Intro 2/21/92
STRS Disability (Betts) Makes various changes to STRS’ disability program, particularly: 1) makes technical revision to the standard for determining disability; 2) defines “comparable level position” as any job in which the disabled member can earn 66-2/3% or more of indexed final compensation; and 3) allows members to apply for disability while still working. 1167 (9/29/92), effective 1/1/93
(C. Green);
Extraordinary Session
Intro 2/21/92
State Employees (Personal Leave Program Service Credit; Final Compensation) As an urgency measure: 1) Allows state employee STRS members subject to the personal leave program (administered by the DPA) to be credited with the service they would have received prior to being placed under this program; and 2) provides that, for nonrepresented state employee members who retire or die on or after 7/1/91, and whose salaries were reduced during the 1991-92 fiscal year, “final compensation” means the highest annual salary as if no reduction had occurred. The employer is required to pay for any costs that result from the increased service credit and use of the higher final compensation. 1372 (10/26/92), effective immediately; Position: NEUTRAL
(Johnston, et al)
Intro 2/21/92
Health Benefits Study Would have required the TRB to conduct a statewide health benefits study of certificated school employees using a $240,000 TRF appropriation for this purpose. The Governor determined this bill served as a catalyst for seeking a statewide health benefit package for school employees, rather than sought at the local level through collective bargaining. Governor Veto (9/30/92); Position: SUPPORT
Intro 2/21/92
Investments (Repeal Sunset – Real Estate Priorities) As an urgency measure, deletes the 1/1/93 repeal date of provisions requiring STRS to give first priority to investing at least 25% of newly available funds in CA residential realty. 540 (8/21/92), effective immediately; Position: SUPPORT
Intro 2/21/92
Division of Community Property As an urgency measure, modifies provisions relating to community property rights in retirement plans including prohibiting a nonmember spouse from receiving a retirement allowance until the actual retirement date of the member. STRS/PERS are excluded from the latter provision. 431 (9/1/92), effective immediately; Position: SUPPORT
California Pension Protection Act (Proposition 162) - Effective upon certification of the Secretary of State, this act grants the TRB plenary authority over investment decisions and administration of the system in a manner that will assure prompt delivery of benefits and related services to members and their beneficiaries. Position: SUPPORT; effective 12/14/92
NOTE: Unless otherwise noted in italicized lettering, or with an asterisk (*) indicating STRS sponsored, legislation was sponsored by the author(s) or committee introducing the bill. Also, refer to the “Legend” for an explanation of abbreviations used.

Decade of Legislation, 1992 State Updated: May 11, 2001