Incentives Move
Two CTA-backed measures that would help districts avoid layoffs of instructional personnel by reducing their compensation costs are awaiting action in the Senate.
CTA-supported 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. AB 1207 is pending on the Senate floor.
The second bill, AB 212, by Assembly Member Bill Maze (R-Visalia), would allow districts to purchase up to four years of service credit with STRS. The Maze bill is expected to come before the Senate Public Employment and Retirement Committee on June 9.
Because of the state’s looming $38.2 billion budget deficit and more than $4.1 billion in already approved school funding cuts, CTA has been urging lawmakers to approve the measures to help districts avoid painful classroom cuts.
The bills would help reduce compensation costs because the salaries of newer teachers are generally much lower than those who have taught for more than 25 years.
Both measures contain “urgency clauses” that would have them take effect as soon as they are signed by the governor. Without the clauses, the bills would not become operative until January 1, 2004.
Both bills provide that the benefit increase must be bargained and specify that only STRS members already at retirement age may participate. 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 toward STRS benefit enhancements, or bonuses.
CTA Members:
Contact your state Senator and ask her/him to vote for these two important CTA-backed measures: AB 1207 (Corbett) and AB 212 (Maze).