ACSA has been following a number of retirement-related bills as they make their way through the Legislature.
One such bill is ACSA-supported Assembly Bill 2390, Karnette, D-Long Beach, which would extend exemptions to the postretirement earnings limit under the California State Teachers Retirement System. The bill would extend exemptions to current limits laid out in last year’s Senate Bill 901 from June 2009 to June 2010.
Under current law, retired CalSTRS members who return to service are subject to a postretirement earnings limit, which was $27,940 in 2007-08. CalSTRS members who earn more than this are subject to a reduction in retirement benefits.
However, SB 901 allowed exemptions to these limits, allowing retired members to forego retirement benefit reductions. These exemptions include the following:
• Direct classroom instruction to K-12 students.
• Support and assessment to new teachers in the Beginning Teacher Support and Assessment Program.
• Support to those completing student teaching assignments.
• Support to participants of the pre-internship teaching program, alternative certification programs and school paraprofessional teacher training program.
• Instruction and student services provided to students enrolled in special education programs.
• Instruction to students enrolled in English language learner programs.
Current exemptions
AB 2390, which was referred to the Assembly Appropriations Committee April 9, would also extend current exemptions from the postretirement earnings limitation under the following circumstances:
• Retirees who return to work after retirement and, for at least 12 consecutive months, have not performed CalSTRS-covered employment.
• Retirees who are appointed as trustees or administrators by the superintendent of public instruction for a maximum period of two years.
• Retirees who, in emergencies, fill vacant administrative positions requiring highly specialized skills – for creditable service performed up to one-half of the full-time position
Another retirement-related bill ACSA is keeping its eye on is AB 1480, Mendoza, D-Artesia, which would allow CalSTRS to offer Roth Individual Retirement Accounts for the purpose of rolling over assets held in a Roth 403(b) account offered by the system.
Federal law requires holders of certain retirement savings accounts, including Roth 403(b) accounts, to take an annual minimum distribution starting at age 70-1/2. A Roth IRA does not have a required minimum distribution, and would allow individuals who don’t wish to start minimum distributions to maintain any advantages that might exist in investing through CalSTRS.
Two retirement-related bills also died in legislative machinations. These include AB 1967, Torrico, D-Fremont, which would have prevented CalSTRS, along with the California Public Employees Retirement System, from investing in sovereign wealth funds or private equity funds affiliated with countries that have not signed on to a half-dozen specified treaties regarding basic human rights.
Another bill that didn’t make it out of committee was AB 1858, Jeffries, R-Riverside, an ACSA-opposed bill which would have public employees, including school employees, convicted of a felony arising directly out of his or her official duties as a public employee, forfeit retirement benefits.
For more information on any of these retirement-related bills, visit www.leginfo.ca.gov.