By Carol Beckstead

Just in case you have not been reading you FACCC newsletters and bulletins, your retirement package has been improved!  After nearly two years of negotiations with the Retirement Coalition (most of the professional associations in the state), Governor Gray Davis has signed the following bills.
Most of these will become effective Jan 1, 2001 unless otherwise stated.

AB 821 (Correa) - Retirees who have 25 years or more of service will have their benefits based on the highest 1 (previously 3) years compensation.
AB 1933 (Strom-Martin)- Provides a "Longevity Bonus".  Retirees with at least 30 years of service by Jan. 1, 2011 will qualify for an additional vested cash supplement.

*30 years of service: $200/month=$2400/yr. + 2%simple cola=$2488/yr.
*31 years of service: $300/month=$3600/yr. + 2% simple cola =$3672/yr
*32 years of service: $400/month=$4800/yr. + 2% simple cola=$4896/yr

The current bonus of 0.2% to 2.4%age factor for teachers with 30 or more years of service remains in effect.  (Effective since 1/1/99)
AB 2700 (Lempert)- This allows faculty to earn a supplemental benefit for teaching summer school, overload classes, etc. This benefit would begin July 1, 2002 only if Proposition 98 revenues for school apportionments are increase by 3.5%.  Otherwise, this benefit will begin July 1, 2003.  This provisions is also known as "creditable compensation" and goes into a separate supplemental  fund to be accessed upon retirement.  It allows income from extra duty and inter-session work to be  used in calculating retirement.

SB 1435 (Johnston)-pays the Medicare Part A  premium to provide hospital coverage to retirees not eligible for Part A on their own.(If your spouse qualifies for Medicare, you can qualify on their Social Security for this.)

AB 429 (Correa) increases the pensions of current retirees between 1% to 6% on a year to year basis depending on their retirement date from pre-1975 to 1997.

SB1505 (Burton)-Extension of SB 713 Minimum Guarantee.  Allows additional retirees to be included in last year's bill to provide a minimum pension guarantee for older retirees.

AB 2383 Survivor Health Benefits.  Provides a basis for developing a health care system for retirees and their dependents.  Gives part-time faculty CalSTRS members the right to health coverage under the PERS healthcare program (PEMHCA) if approved by a local board resolution.

AB 2456 (Wright). Allows retired faculty, with at least 20 years service credit, to receive a "pre-pay" lump sum payment of up to 15% of their monthly pensions.

YOU can read the entire bill or follow new bills by www.leginfo.ca.gov.  Then click on LEGISLATION, Type in the bill number and search.  QUESTIONS ABOUT RETIREMENT?  Call 1-800-228-5453 or www.strs.ca.gov