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AB-607 State teachers’ retirement: career bonus.(2001-2002)

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AB607:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2001–2002 REGULAR SESSION

Assembly Bill
No. 607

Introduced  by  Assembly Member Negrete McLeod

February 22, 2001

An act to amend Section 24203.5 of the Education Code, relating to state teachers’ retirement.


LEGISLATIVE COUNSEL'S DIGEST


AB 607, as introduced, Negrete McLeod. State teachers’ retirement: career bonus.
Under the existing Teachers’ Retirement Law, service retirement benefits for members of the Defined Benefit Program are calculated by multiplying a specified percentage, up to 2.4%, of the member’s final compensation by the member’s years of credited service at the time of retirement. Existing law provides that the applicable percentage rate shall be increased by .2% for members who retire with 30 or more years of credited service, as specified, provided that the increased rate shall not exceed 2.4%.
This bill would increase the maximum percentage rate for calculating benefits for members who retire with 30 or more years of credited service to 2.6%.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 24203.5 of the Education Code is amended to read:

24203.5.
 (a) The percentage of final compensation used to compute the allowance pursuant to Section 24202.5, 24203, or 24205 of a member retiring on or after January 1, 1999, who has 30 or more years of credited service, excluding service credited pursuant to Section 22714, 22715, or 22717, shall be increased by two-tenths of 1 percentage point, provided that the sum of the percentage of final compensation used to compute the allowance in Section 24202.5, 24203, or 24205, including any adjustments for retiring before the normal retirement age, and the additional percentage provided by this section does not exceed 2.40 percent. For purposes of establishing eligibility for the increased allowance pursuant to this section only, credited service shall include credited service that a court has ordered be awarded to a nonmember spouse pursuant to Section 22652. A nonmember spouse shall also be eligible for the increased allowance pursuant to this section if the member had 30 or more years of credited service on the date the parties separated, as established in the judgment or court order pursuant to Section 22652.
(b) Nonqualified service credit for which contributions pursuant to Section 22826 were made in a lump sum on or after January 1, 2000, or for which the first installment was made on or after January 1, 2000, shall not be included in determining the eligibility for an increased allowance pursuant to this section.
(c) The amendments made to subdivision (a) in the first year of the 1999–2000 Regular Session are declaratory of existing law.
(d) Notwithstanding subdivision (a), the sum of the percentage of final compensation used to compute the allowance in Section 24202.5, 24203, or 24205, including any adjustments for retiring before the normal retirement age, and the additional percentage provided by this section, for a member described in subdivision (a) who retires on or after January 1, 2002, shall not exceed 2.60 percent.