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

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AB1733:v93#DOCUMENT

Assembly Bill No. 1733
CHAPTER 896

An act to amend, repeal, and add Section 24214 of the Education Code, relating to the State Teachers’ Retirement System.

[ Filed with Secretary of State  September 29, 2000. Approved by Governor  September 28, 2000. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1733, Wildman. State Teachers’ Retirement System: postretirement earnings.
Under the State Teachers’ Retirement Law, the service retirement allowance of a retired member is generally required to be reduced if the member’s postretirement compensation from specified activities exceeds a certain dollar amount.
This bill would, until January 1, 2008, eliminate the postretirement earnings limitation for retired members who return to work after retirement and who, for one year, have not performed any creditable service, as specified; increase that limitation, as specified, for other retired members; and make related findings and declarations. On January 1, 2008, existing law would be restored, except that the amount of allowable postretirement compensation would be increased.

The people of the State of California do enact as follows:


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 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) (1) The postretirement compensation limitation provisions set forth in this section shall not be applicable to compensation earned 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) 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, 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 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 amendments to this section enacted during the 1995–96 Regular Session shall be deemed to have become operative on July 1, 1996.
(i) This section shall be repealed on 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.