Copyright© 2001 by School Services
of California, Inc.
Volume 14
For Publication
Date: December 21,
2001 No.
26
Are Districts Required to Contribute to STRS
for Some Part-Time Faculty?
- I have been informed by a faculty member that, effective next July, my
district is required to contribute to the State Teachers’ Retirement
System (STRS) for all part-time faculty who are members of STRS (because
they are working full-time in another district). Is this correct? If so,
what legislation contained these provisions?
- Assembly Bill 2700 (Chapter 1021/2000) is the bill that redefined
"creditable compensation" to include virtually all money paid for
creditable service, such as summer school and intersessions. These new
provisions will become effective July 1, 2002. Also contained in the bill is
language stipulating that all contributions by the employer and member on
what is now "creditable compensation" be paid to STRS. STRS will
then credit the Defined Benefit Supplement Program for those contributions
applicable to creditable service that exceeds 1.000 in a school year.
STRS will soon be providing a directive for the
implementation of AB 2700, including this provision. Because of the potential
unfunded mandated costs for the additional employer’s contributions,
estimated to be $175 million for K-12 districts and $20 million for community
college districts, several organizations including CASBO and the Community
College Chancellor’s Office have requested that AB 2700 either be fully
funded or delayed into later years as the state’s budget picture improves.
—Arnold Bray and Sheila Bua