Two bills backed by CTA would help districts avoid layoffs of instructional personnel by reducing their compensation costs.
AB 1207 by Assembly Member Ellen Corbett (D-San Leandro) would authorize K-12 and community college districts to offer senior teachers up to two years of additional service and age credit with the State Teachers' Retirement System (STRS) as a retirement incentive. The bill is pending on the Senate floor.
AB 212 by Assembly Member Bill Maze (R-Visalia) would allow districts to purchase up to four years of service credit with STRS. It is awaiting action in the Senate Public Employment and Retirement Committee.
Because of the state's looming $38.2 billion budget deficit and more than $4.1 billion in school funding cuts already approved, CTA has been urging lawmakers to approve the measures to help districts. The bills would reduce compensation costs because the salaries of newer teachers are generally much lower than those who have taught for more than 25 years.
The benefit increase, which must be bargained, is available only to STRS members already at retirement age. The measures also limit post-retirement teaching for persons who take the retirement incentives. CTA retirement experts note that the increased service credit would not count towards the STRS benefit enhancements, or bonuses.
Both measures contain "urgency clauses" that would have them take effect as soon as they are signed by the governor rather than Jan. 1.