Today's Law As Amended

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AB-1733 State Teachers’ Retirement System: postretirement earnings.(1999-2000)



SECTION 1.
 The Legislature find and declares:
(a) As a result of the enactment of the Class-Size Reduction Program, over 22,000 emergency credentialed teachers are currently teaching tens of thousands of students across the state. Because many of these teachers are minimally qualified and inexperienced, the quality of instruction for these students has been adversely affected.
(b) The average teaching experience of retired teachers in this state is 27 years.
(c) Under the State Teachers’ Retirement Law, postretirement earnings of retired teachers are limited, thereby creating a disincentive for retired teachers to reenter the teaching profession.
(d) Teachers who retired on or before July 1, 1998, who choose to reenter the teaching profession under the Class-Size Reduction Program, and who satisfy other conditions are exempt from those postretirement earnings limitations. Since the enactment of this exemption, over 1,600 retired teachers throughout the state have returned to teaching, providing approximately 32,000 students with the benefits of experienced, highly qualified teachers.
(e) The pool of retired teachers represents a valuable resource. All California students would benefit if more retired teachers chose to return to teaching.

SEC. 2.

 Section 24214 of the Education Code is amended to read:

24214.
 (a) A member retired for service under this part may perform retired member activities, but the member shall not make contributions to the retirement fund or accrue service credit based on compensation earned from that service. The employer shall maintain accurate records of the earnings of the retired member and report those earnings monthly to the system and retired member as described in Section 22461. the activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5 as an employee of an employer, as an employee of a third party, or as an independent contractor within the California public school system, but the member shall not make contributions to the retirement fund or accrue service credit based on compensation earned from that service. 
(b) If a member is  The rate of pay for service performed by a member  retired for service under this part, the annualized rate of pay for retired member activities performed by that member  part as an employee of the employer  shall not be less than the minimum, nor exceed the maximum,  that  paid by the employer to other employees performing comparable duties.
(c) A member retired for service under this part shall not be required to reinstate for performing retired member activities. the activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5, as an employee of an employer, as an employee of a third party, or as an independent contractor within the California public school system. 
(d) A member retired for service under this part may earn compensation for performing retired member  activities in  identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5 in  any one school year up to the limitation specified in subdivision (f) as an employee of an employer, as an employee of a third party, or an independent contractor, within the California public school system,  without a reduction in his or her retirement allowance.
(e) (1)  The postretirement compensation limitation provisions set forth in this section are shall  not be  applicable to compensation earned for the performance of retired member activities that are not wholly or in part supported by state, local, or federal funds. by a member retired for service under this part who has returned to work after the date of retirement and, for a period of at least 12 consecutive months, has not performed the activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5 as an employee of an employer, as an employee of a third party, or as an independent contractor within the California public school system. 
(2) The postretirement compensation limitation provisions set forth in this section shall not be applicable to compensation earned for the performance of the activities described in subdivision (a) for which the employer is not eligible to receive state apportionment or to compensation that is not creditable pursuant to Section 22119.2.
(f) (1)  The limitation that shall apply to the compensation paid in cash to the retired member  for performance of retired member activities, excluding reimbursements paid by an employer for expenses incurred by the member in which payment of the expenses by the member is substantiated, shall,  the activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5 by a member retired for service under this part either as an employee of an employer, an employee of a third party, or as an independent contractor, shall be twenty-two thousand dollars ($22,000)  in any one school year, be an amount calculated  adjusted annually  by the system board  each July 1 equal to one-half of the median final compensation of all members who retired for service during the fiscal year ending in the previous calendar year. by the annual amount of increase in the All Urban California Consumer Price Index using December 1999 as the base. 
(2) For written agreements pertaining to the performance of retired member activities entered into, extended, renewed, or amended on or after January 1, 2014, the limitation in paragraph (1) shall also apply to payments made for the performance of retired member activities, including, but not limited to, those for participation in a deferred compensation plan; to purchase an annuity contract, tax-deferred retirement plan, or insurance program; and for contributions to a plan that meets the requirements of Section 125, 401(a), 401(k), 403(b), 457(b), or 457(f) of Title 26 of the United States Code when the cost is covered by an employer.
(g) If a member retired for service under this part earns compensation for performing retired member activities, in  activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5 in  excess of the limitation specified in subdivision (f), the  as an employee of an employer, as an employee of a third party, or as an independent contractor, within the California public school system, and if that compensation is not exempt from that limitation under subdivision (e) or any other provisions of law, the  member’s retirement allowance shall be reduced by the amount of the excess compensation. The amount of the reduction in an individual month shall be no more than  may be equal to  the monthly allowance payable in that month, and the total amount of the reduction  but  shall not exceed the amount of the annual allowance payable under this part for the fiscal year in which the excess compensation was earned after any reduction made in accordance with subdivision (h) of Section 24214.5. earned. 
(h) The language of this section derived from the amendments to the section of this number added by Chapter 394 of the Statutes of 1995,  amendments to this section  enacted during the 1995–96 Regular Session, is  Session shall be  deemed to have become operative on July 1, 1996.
(i) This section shall become operative be repealed  on July 1, 2017. January 1, 2008, unless later enacted legislation extends or deletes that date. 

SEC. 3.

 Section 24214 is added to the Education Code, to read:

24214.
 (a) A member retired for service under this part may perform the activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5 as an employee of an employer, as an employee of a third party, or as an independent contractor within the California public school system, but the member shall not make contributions to the retirement fund or accrue service credit based on compensation earned from that service.
(b) The rate of pay for service performed by a member retired for service under this part as an employee of the employer shall not be less than the minimum, nor exceed that paid by the employer to other employees performing comparable duties.
(c) A member retired for service under this part shall not be required to reinstate for performing the activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5, as an employee of an employer, as an employee of a third party, or as an independent contractor within the California public school system.
(d) A member retired for service under this part may earn compensation for performing activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5 in any one school year up to the limitation specified in subdivision (f) as an employee of an employer, as an employee of a third party, or an independent contractor, within the California public school system, without a reduction in his or her retirement allowance.
(e) The postretirement compensation limitation provisions set forth in this section shall not be applicable to compensation earned for the performance of the activities described in subdivision (a) for which the employer is not eligible to receive state apportionment or to compensation that is not creditable pursuant to Section 22119.2.
(f) The limitation that shall apply to the compensation for performance of the activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5 by a member retired for service under this part either as an employee of an employer, an employee of a third party, or as an independent contractor, shall be twenty-two thousand dollars ($22,000), in any one school year, adjusted annually by the board each July 1 by the annual amount of increase in the All Urban California Consumer Price Index using December 1999 as the base.
(g) If a member retired for service under this part earns compensation for performing activities identified in paragraphs (1) to (9), inclusive, of subdivision (a), or subdivision (b), of Section 22119.5 in excess of the limitation specified in subdivision (f), as an employee of an employer, as an employee of a third party, or as an independent contractor, within the California public school system, the member’s retirement allowance shall be reduced by the amount of the excess compensation. The amount of the reduction may be equal to the monthly allowance payable but shall not exceed the amount of the annual allowance payable under this part for the fiscal year in which the excess compensation was earned.
(h) The language of this section derived from the amendments to the section of this number added by Chapter 394 of the Statutes of 1995, enacted during the 1995–96 Regular Session, shall be deemed to have become operative on July 1, 1996.
(i)This section shall become operative on January 1, 2008.