1995 State Legislation



Intro 1/9/95
School District Reorganization (Los Angeles) 1) Exempts any city with a population of over 3,000,000 persons from the requirement that a school district may not be reorganized without the consent of the governing board. Existing law specifies that an action to reorganize a school district may be initiated upon the filing of a petition signed by at least 25% of the registered voters residing in the territory to be reorganized; and 2) provides that a petition may also be filed to reorganize a single district with over 200,000 pupils into several smaller districts if signed by a number of registered voters equal to at least 8% of the votes cast for all candidates for Governor at the last gubernatorial election in the territory to be reorganized; double-joined with Chapter 412/95 (SB-699, Hayden). 267 (8/2/95), effective 1/1/96; Position: INFORMATION ONLY
AB-948 *
Intro 2/22/95
Post-retirement Earnings Limit Exemption; Defines Employment Activities in Determining Post-Retirement Creditable Service As an urgency measure, 1) facilitates the continued administration of school districts faced with financial difficulties by modifying, under limited circumstances, specific provisions of the EC to permit the employment of retired STRS members in administrative positions, who have specific experience necessary to ensure or restore the financial stability of a troubled school district; and 2) also establishes definitions of various employment activities that are considered “creditable service” and provides that the earnings limitation on post-retirement service is applied only to compensation earned from creditable service. Co-sponsored with ACSA 394 (8/10/95), effective 7/1/95
AB-1122 *
Intro 2/23/95
Establishes Minimum Standards for Full-time Employment (FTE) 1) Establishes appropriate minimum standards for full-time employment for all classifications of employees in K-12 and community colleges for crediting service in STRS, while continuing to allow the districts the flexibility to establish specific standards for full-time employment; and 2)makes clarifying amendments to existing definitions and adds new definitions to the EC as necessary, and repeals provisions that are made obsolete by these changes. 390 (8/10/95), effective 7/1/96
AB-1298 *
(Ducheny, et al)
Intro 2/23/95
Establishes the Cash Balance Plan Authorizes STRS to establish a Cash Balance retirement program administered by STRS for part-time public school employees which employers may elect to provide for persons employed less than half-time at a contribution rate that is lower than Social Security tax. Note: The I.R.S. has expressly ruled that STRS’ Cash Balance Qualifies as an alternative retirement plan to Social Security. 592 (10/4/95), effective 1/1/96
AB-1441 *
Intro 2/24/95
Pre-Retirement Options Modifications Addresses three issues related to pre-retirement option elections and survivor benefits to: 1) eliminate the requirement that a surviving spouse of a STRS member under Coverage A must wait until age 60 to receive a monthly allowance; 2) makes the age and service requirements for eligibility to make a pre-retirement election of an option consistent with the requirements for eligibility for retirement; and 3) makes the assessment for cancellation of an option more reflective of the actual costs to STRS for providing the coverage the member received. 524 (10/4/95), effective 1/1/96
(Hayden, et al)
Intro 2/22/95
School District Reorganization Specifies that any reorganization of a school district in a city with a population of more than 3,000,000 persons shall ensure that each new district created meets specified conditions, including the maintenance of the conditions of all collective bargaining agreements until their expirations. Bill is double-joined with Chapter 267/95 (AB-107, Boland). 412 (8/10/95), effective 1/1/96; Position: INFORMATION ONLY
SB-791 *
Intro 2/23/95
Federal Compliance (Compensation Limit); Eliminates STRS Annual Report Supplement 1) Amends the GC and the EC to include a reference to the compensation limit recently mandated by Section 401(a)(17) of the IRC. This requirement limits the annual compensation for the purpose of benefit accruals to $150,000 for each employee under a qualified pension plan for new members hired on and after 7/1/96; and 2) amends the provisions that prescribe the content of the STRS Annual Report, and reporting requirements related to STRS investments. Co-sponsored with PERS and SACRS 829 (10/12/95), effective 7/1/96
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, 1995 State Updated: May 11, 2001