A CTA-sponsored measure that would return to the State Teachers' Retirement System (STRS) $500 million withheld by the state in 2003 in an effort to balance the budget has cleared the Assembly with overwhelming bipartisan support.
At the same time, a legislative committee defeated a measure that would have eliminated secure and predictable retirements for teachers and other public employees.
The first measure, AB 55, sponsored by Assembly Member Gene Mullin (D-South San Francisco), now heads to the state Senate for further action. The money would restore the system's Supplemental Benefits Maintenance Account (SBMA), which provides inflation protection for pension payments to some 63,000 longtime retirees whose retirement pay has eroded over the years.
CTA and STRS sued for restoration of the money and recently won a Superior Court ruling against the state. AB 55 would require the state to make annual appropriations to the fund with interest until 2017.
On May 25, a Special Legislative Committee soundly defeated ACAX1 8, sponsored by Assembly Member Keith Richman (R-Northridge). The CTA-opposed measure would have phased out the current defined benefit retirement plans offered by STRS and PERS. In their place, the proposal would have implemented a "hybrid plan" that would have exposed state employees to the uncertainties of the stock market.
Richman introduced ACAX1 8 after it became apparent that his earlier measure — ACAX1 1, introduced to carry the governor's attack on the public employee systems — would not gain the panel's approval.
ACAX1 8 is now a two-year bill that could regain consideration in the next legislative year.
