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AB-1586 State teachers’ retirement benefits.(2003-2004)

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AB1586:v92#DOCUMENT

Assembly Bill No. 1586
CHAPTER 442

An act to amend Section 22115 of the Education Code, relating to state teachers’ retirement, and making an appropriation therefor.

[ Filed with Secretary of State  September 10, 2004. Approved by Governor  September 10, 2004. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1586, Committee on Public Employees, Retirement and Social Security. State teachers’ retirement benefits.
Existing law defines “creditable compensation” and “full time” for purposes of calculating retirement benefits for members of the Defined Benefit Program of the State Teachers’ Retirement Plan. Those definitions were amended as of July 1, 1996, by Chapter 390 of the Statutes of 1995.
Under this bill, creditable compensation of a member employed by a community college prior to that amendment would be determined pursuant to the former definition of “full time,” if application of that former definition would benefit the member.
The bill would also appropriate $140,000 from the Teachers’ Retirement Fund to the Teachers’ Retirement Board to fund the one-time administrative costs of the bill, thereby making an appropriation.
Appropriation: YES  

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


SECTION 1.

 Section 22115 of the Education Code, as amended by Section 3 of Chapter 1021 of the Statutes of 2000, is amended to read:

22115.
 (a) “Compensation earnable” means the creditable compensation a person could earn in a school year for creditable service performed on a full-time basis, excluding service for which contributions are credited by the system to the Defined Benefit Supplement Program.
(b) The board may determine compensation earnable for persons employed on a part-time basis.
(c) When service credit for a school year is less than 1.000, compensation earnable shall be the product obtained when creditable compensation paid in that year is divided by the service credit for that year, except as provided in subdivision (d).
(d) When a member earns creditable compensation at multiple pay rates during a school year and service credit at the highest pay rate is at least 0.900 of a year, compensation earnable shall be determined as if all service credit for that year had been earned at the highest pay rate. This subdivision shall be applicable only for purposes of determining final compensation. When a member earns creditable compensation at multiple pay rates during a school year and service credit at the highest pay rate is less than 0.900 of a year, compensation earnable shall be determined pursuant to subdivision (c).
(e) For purposes of determining compensation earnable for a member employed by a community college prior to July 1, 1996, full time shall be defined pursuant to Section 22138.5 and pursuant to Section 20521 of Title 5 of the California Code of Regulations, as those provisions read on June 30, 1996, if application of that definition will increase the compensation earnable or otherwise enhance the benefits of the member.
(f) The amendments to this section made during the second year of the 1999–2000 Regular Session shall become operative on July 1, 2002, if the revenue limit cost-of-living adjustment computed by the Superintendent of Public Instruction for the 2001–02 fiscal year is equal to or greater than 3.5 percent. Otherwise the amendments to this section made during the second year of the 1999–2000 Regular Session shall become operative on July 1, 2003.

SEC. 2.

 The sum of one hundred forty thousand dollars ($140,000) is hereby appropriated from the Teachers’ Retirement Fund to the Teachers’ Retirement Board to fund the one-time administrative costs of this act.