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AB-2998 Teachers: defined contribution plans: salaries.(2019-2020)

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Date Published: 04/29/2020 09:00 PM
AB2998:v98#DOCUMENT

Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2998


Introduced by Assembly Member Kiley

February 21, 2020


An act relating to public retirement. to amend Section 45028 of, to add Sections 22603 and 45026 to, and to add Article 6 (commencing with Section 45070) to Chapter 4 of Part 25 of Division 3 of Title 2 of, the Education Code, relating to teachers.


LEGISLATIVE COUNSEL'S DIGEST


AB 2998, as amended, Kiley. State Teachers’ Retirement System. Teachers: defined contribution plans: salaries.
Existing law, the Teachers’ Retirement Law, establishes the State Teachers’ Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers’ Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. STRS is administered by the Teachers’ Retirement Board. The Defined Benefit Program is funded by employer and employee contributions, as well as investment returns and state appropriations, which are deposited or credited to the Teachers’ Retirement Fund.

This bill would state the intent of the Legislature to subsequently amend this bill to include provisions that would authorize a school district to offer an optional contract to its employees that has a defined contribution plan in lieu of a defined benefit plan provided that the decision to select that contract is made by the employee.

Existing law requires the governing board of a school district to adopt a schedule of salaries to be paid to the certificated employees of the school district. Existing law prohibits the governing board of a school district from drawing orders for the salary of any teacher in violation of a salary schedule based on a uniform allowance for years of training and years of experience, or on other criteria agreed to by the school district and the exclusive representative of the certificated employees of the school district.
This bill would authorize a school district to offer a defined contribution plan to certificated employees and would exclude a certificated employee who opts into a defined contribution plan from membership in the Defined Benefit Program. The bill would authorize a school district to offer a higher salary or lower contribution rate to a defined contribution plan as an incentive for a certificated employee to opt into a defined contribution plan. The bill would authorize a certificated employee to negotiate a salary or contribution rate for a defined contribution plan outside of the school district’s salary schedule. The bill would provide that, to the extent the bill’s provisions conflict with any provision of a collective bargaining agreement entered into by a public school employer and an exclusive bargaining representative before January 1, 2021, these provisions do not apply to the school district until the expiration or renewal of that collective bargaining agreement.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 This bill shall be known, and may be cited, as the Rising Academic Instructor Salaries in Education Act, or RAISE Act.

SEC. 2.

 Section 22603 is added to the Education Code, to read:

22603.
 A person who opts into a defined contribution plan pursuant to Article 6 (commencing with Section 45070) of Chapter 4 of Part 25 of Division 3 of Title 2 is excluded from membership in the Defined Benefit Program.

SEC. 3.

 Section 45026 is added to the Education Code, to read:

45026.
 Notwithstanding any other law, a person employed by a school district in a position requiring certification qualifications may negotiate a salary other than the salary prescribed by a salary schedule adopted pursuant to this article.

SEC. 4.

 Section 45028 of the Education Code is amended to read:

45028.
 (a) (1) Effective July 1, 1970, each person employed by a school district in a position requiring certification qualifications, except a person employed in a position requiring administrative or supervisory credentials, shall be classified on the salary schedule on the basis of uniform allowance for years of training and years of experience, except if a public school employer and the exclusive representative negotiate and mutually agree to a salary schedule based on criteria other than a uniform allowance for years of training and years of experience pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code. Employees shall not be placed in different classifications on the schedule, nor paid different salaries, solely on the basis of the respective grade levels in which such employees serve.
(2) In no case shall the Except as provided in Section 45026, the governing board of a school district shall not draw orders for the salary of any teacher in violation of this section, nor shall any superintendent draw any requisition for the salary of any teacher in violation thereof. of this section.
(3) This section shall not apply to teachers of special day and evening classes in elementary schools, teachers of special classes for elementary pupils, teachers of special day and evening high school classes and substitute teachers.
(b) (1) It is not a violation of the uniformity requirement of this section for a school district, with the agreement of the exclusive representative of certificated employees, if any, to grant any employee hired after a locally specified date differential credit for prior years of experience or prior units of credit for purposes of initial placement on the salary schedule of the district.
(2) This subdivision is declaratory of existing law.
(c) A public school employer and the exclusive representative of credentialed teachers may jointly apply to the Superintendent for technical assistance and planning grant funding to facilitate the planning of a salary schedule for teachers based on criteria in addition to years of training and years of experience, as described in subdivision (a). The Superintendent may make planning grants from funds appropriated for this purpose in the annual Budget Act or other legislation.
(d) To be eligible for grant funding pursuant to subdivision (c), the public school employer and the exclusive representative of credentialed teachers should consider a salary schedule designed to compensate teachers for the additional responsibilities, time, and effort required to serve in challenging school settings, and reward teachers for professional growth tied to their particular assignments.
(e) Public school employers and exclusive representatives of credentialed teachers are encouraged to recognize teacher contributions to improving pupil achievement, provide incentives to teachers to accept teaching assignments in areas of highest need, and recognize relevant professional experience on the salary schedule in lieu of units and degrees or in lieu of teaching experience.

SEC. 5.

 Article 6 (commencing with Section 45070) is added to Chapter 4 of Part 25 of Division 3 of Title 2 of the Education Code, to read:
Article  6. Defined Contribution Plans

45070.
 (a) A school district may offer a defined contribution plan to certificated employees. A certificated employee may opt into a defined contribution plan offered by a school district, in which case the certificated employee is excluded from membership in the State Teachers’ Retirement System.
(b) A decision to employ, terminate, or grant permanent status to a certificated employee shall not be based on whether the certificated employee opts into a school district’s defined contribution plan.
(c) (1) A school district may offer a higher salary or lower contribution rate to a defined contribution plan as an incentive for a certificated employee to opt into a defined contribution plan.
(2) Pursuant to Section 45026, a certificated employee may negotiate a salary or contribution rate for a defined contribution plan outside of the salary schedule of the school district developed pursuant to Article 5 (commencing with Section 45022).
(3) A collective bargaining agreement entered into by the school district and the exclusive representative of the certificated employees of the school district on or after January 1, 2021, shall not prohibit a school district from offering a higher salary or lower contribution rate to a defined contribution plan as an incentive to a certificated employee and shall not prohibit a certificated employee from negotiating a salary or contribution rate for a defined contribution plan outside of the salary schedule.

SEC. 6.

 To the extent that any provision of this bill conflicts with a provision of a collective bargaining agreement entered into by a public school employer and an exclusive bargaining representative before January 1, 2021, pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code, the changes made by this bill shall not apply to the school district until expiration or renewal of that collective bargaining agreement.
SECTION 1.

It is the intent of the Legislature to subsequently amend this measure to include provisions that would authorize a school district to offer an optional contract to its employees that has a defined contribution plan in lieu of a defined benefit plan provided that the decision to select that contract is made by the employee.