1994 State Legislation



Intro 3/4/93
Additional Years of Service Credit Would have granted, upon the Governor’s executive order, 3 additional years of service and an additional 3 years of age to state employees, certain employees of contracting agencies, and certain STRS members employed in state agencies. The Governor was not convinced the provisions would save money. According to the proponents, a primary purpose of this bill was to avoid layoffs. Although the theory is that savings would accrue through the replacement of highly compensated senior employees with lower paid employees, experience has proven retirement enhancements to be expensive, and costing more than initial estimates. Sponsored by Professional Engineer’s in CA Government, Assoc. of CA State Attorneys & Administrative Law Judges, CA Assoc. of Highway Patrolmen, CA Dept. of Forestry Employee Assoc., and Orange Co. Employee Assoc. Governor Veto (5/20/94); Position: NEUTRAL
(Burton, et al)
Intro 3/4/93
Investments (Northern Ireland) Would have required STRS/PERS to monitor annually the extent to which companies in Northern Ireland adhere to principles of nondiscrimination and freedom of opportunity in the workplace. The Governor viewed this legislation the same as another bill he vetoed in 1992 stating that with increasing prospects for political settlement in Northern Ireland, it made no sense to enact this proposal. Governor Veto (9/29/94); Position: NEUTRAL
AB-2237 (McDonald)
Intro 3/5/93
Investments (South African Bonds) Authorizes any state or local retirement system to invest in rated or unrated bonds, notes, or other instruments guaranteed by the government of South Africa. Note: The provisions are permissive and does not require action by STRS. 46 (4/19/94), effective 1/1/95; Position: NEUTRAL
(W. Brown, et al)
Intro 1/4/94
Investments (Repeal of South Africa Sanctions) As an urgency measure, repeals existing law that prohibits state trust fund investments in South Africa. 31 (3/30/94), effective immediately; Position: SUPPORT
Intro 1/13/94
Extended SR Formula Would have provided an incremental increase in the benefit factor of .25 of 1% per month up to a maximum of 2.3% at age 65 for STRS members retiring after 6/30/95 with 20 or more years of service credit and whose employer elected to provide this benefit. The Governor vetoed a similar bill last year and objected then to any benefit enhancement coming at the expense of classroom resources. Sponsored by CTA Governor Veto (9/30/94); Position: SUPPORT
AB-2550 *
(Karnette) Intro 1/19/94
Repeal Administrative Refund Fee Repeals existing law which requires STRS to charge an administrative fee for processing a member’s request for a refund of his or her member contributions. The bill also permits certain refunds to be canceled and membership to be restored. 932 (9/27/94), effective 7/1/95
AB-2554 *
(Solis) Intro 1/20/94
Part-time Teacher Notification Requires STRS employers to provide notification to employees of the employees’ right to elect membership in the STRS Defined Benefit Plan and applies an employer penalty for non-compliance. Employers are not liable for employee contributions for service performed prior to 1/1/95. Co-sponsored with CFT 603 (9/15/94), effective 1/1/95
Intro 2/2/94
Adult Education Membership 1) Allows part-time and substitute instructors in adult education who are currently excluded from membership in STRS to elect membership in the STRS Defined Benefit Plan; and 2) requires the employer to return overpaid contributions to the member within 60 days of discovery or notification of the overpayment. Sponsored by CA Council for Adult Education 507 (9/11/94), effective 1/1/95; Position: NEUTRAL
AB-2648 *
Intro 2/2/94
Benefit Enhancement Study Would have required STRS to conduct a study to determine the feasibility of the System to offer certain optional benefit enhancements that members could elect to purchase. The Governor determined that while the bill provides for recovery of the $75,000 appropriation from STRS members receiving a benefit enhancement, there was no assurance that the TRF would be fully reimbursed, and so the TRB agreed to undertake the study using its own resources. Co-sponsored with CTA Governor Veto (9/15/94); The study is expected to be presented to the TRB in February `98
Intro 2/17/94
Investments (Securities; Public Retirement Systems) Would have authorized any public retirement system to invest in securities guaranteed by the African, Asian and Caribbean Development Banks and the Inter American Bank. Died in Senate (6/30/94); Position: NEUTRAL
Intro 2/17/94
Membership Would have allowed STRS members who become employed with one of six state agencies in a position represented by Bargaining Unit 21 and requiring membership in PERS to elect to remain in STRS by making such election in writing within 30 days of entering the new position. The Governor determined this bill would have provided a more costly benefit to a select group of employees and therefore inequitable, and that retirement benefits should be discussed and agreed upon through collective bargaining prior to a legislative resolution. Sponsored by CSEA - Bargaining Unit 21 Governor Veto (9/11/94); Position: SUPPORT
AB-3064 *
(Morrow) Intro 2/22/94
TSA Program Requires STRS to offer a TSA program, as specified. Co-sponsored with ACSA 291 (7/20/94), effective 1/1/95
AB-3171 *
Intro 2/23/94
TRL Technical Housekeeping As an urgency measure, makes various minor, corrective and technical changes to the TRL related primarily to the 1993 recodification. 933 (9/27/94), effective immediately
AB-3407 *
(PER&SS Committee)
Intro 2/24/94
Mid-career Counseling Program Requires STRS to offer a mid-career retirement planning information program for STRS members. Co-sponsored with ACSA 656 (9/19/94), effective 1/1/95
Intro 2/25/94
Membership (Insolvent School Districts) Provides that trustees or administrators appointed by the Superintendent of Public Instruction to an insolvent school district, as specified, shall be members of STRS for the period of the appointment, unless they elect in writing not to become or remain members. Sponsored by DOE 1002 (9/28/94), retroactive to 7/1/93; Position: SUPPORT
AB-3705 *
(PER&SS Committee)
Intro 2/25/94
457 Deferred Compensation Plans Allows STRS to develop one or more deferred compensation plans pursuant to Section 457 of the IRC. Co-sponsored with CTA 489 (9/10/94), effective 1/1/95
AB-3832 *
(PER&SS Committee)
Intro 3/16/94
Defines “Full-time” Codifies the definition of “full-time” as a distinct code section, separate from the definition of “compensation earnable.” 193 (7/9/94), effective 1/1/95
Intro 2/4/93
Health Benefits (Local Public Employees) Would have allowed STRS to offer health benefits to active and retired members. STRS believes that affordable health benefits coverage is an integral part of a secure retirement and is in concert with its primary responsibility to provide retirement program services to its members. The Governor determined that the System would be required to acquire special expertise and resources to administer health benefits; and, since the benefit would be partially funded by school districts, it would reduce resources available for classrooms. Sponsored by CRTA Governor Veto (9/30/94); Position: SUPPORT
Intro 2/12/93
Elected STRS Board Would have required that the four STRS members of the TRB be elected to the Board from their respective constituencies rather than appointed by the Governor. The Governor determined there was no need to substitute the current appointment process with a cumbersome election process at a cost to the TRF in excess of $125,000; Proposition 162 established in the state constitution the responsibilities and priorities for the TRB who have fulfilled those obligations; and, an elected Board should represent interests of the entire system, not individual constituencies. Sponsored by ART Governor Veto (9/25/94); Position: NEUTRAL
Intro 3/1/93
75% Purchasing Power Protection (Establish Legislative Intent) 1) Restates the intent of the State to ensure a minimum purchasing power of 75% of the initial retirement allowance and specifies possible revenues; 2) requires STRS to annually report return on investments and actual total salaries; and 3) requires the Controller to adjust the ad hoc minimum guarantee contribution to STRS once actual payroll is determined. Sponsored by CRTA 858 (9/25/94), effective 1/1/95; Position: SUPPORT
SB-858 *
(PE&R Committee) Intro 3/4/93
Golden Handshake Reestablishes the Golden Handshake additional 2 years service credit program operative 3/30/94 through 12/31/98. 20 (3/15/94), effective 3/14/94
Intro 1/6/94
Investments (South Africa) As an urgency measure, repeals existing law that prohibits state trust fund investments in South Africa. 30 (3/30/94), effective immediately; Position: SUPPORT
Intro 2/10/94
Investments (International) Authorizes any public retirement system to invest in securities guaranteed by various international financial institutions. Sponsored by Dymally, Ernest & Fair 1084 (9/28/94), effective 1/1/95; Position: NEUTRAL
Intro 2/15/94
Service Credit for Unused Sick Leave Would have allowed employers to elect to provide service credit for unused sick leave at retirement to those employees who become STRS members after 7/1/80. Sponsored by CTA Died in Assembly (11/30/94); Position: SUPPORT
SB-1972 *
Intro 2/25/94
Investments (Possessory Interest Tax Proration) Makes permanent the provisions which would otherwise sunset 6/30/94, regarding the proration of the possessory interest tax imposed upon the tenants of properties owned by STRS. Co sponsored with PERS 1281 (9/30/94), effective immediately
(Budget Committee)
Intro 4/21/94
1994-95 Budget Makes appropriations for support of state government for the 1994-95 fiscal year. 139 (7/8/94), effective immediately
California Health Security Act (Proposition 186) – Would have established a “single payer” health care system in which the State of CA would administer and finance health care coverage, thereby replacing most private health insurance and current public health care programs. The proposed System would have been similar to those used in some other countries, such as Canada. This Act would have some impact on STRS members depending on their individual circumstances. It would have no impact on STRS as a public pension fund nor on services STRS currently provided to members. Position: NO POSITION
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, 1994 State Updated: May 11, 2001