SB 95: State employees: memorandum of understanding.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2016-05-10
(1)Existing law provides that a provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees that requires the expenditure of funds does not become effective unless approved by the Legislature in the annual Budget Act.
This bill would approve provisions of a memorandum of understanding entered into between the state employer and State Bargaining Unit 6, the California Correctional Peace Officers Association, that require the expenditure of funds, and would provide that these provisions will become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.
This bill would provide that provisions of the memorandum of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature, and would require the state employer and the affected employee organization to meet and confer to renegotiate the affected provisions if funds for those provisions are not specifically appropriated by the Legislature. The bill would appropriate $31,869,000 in augmentation of certain items of the Budget Act of 2015, according to a specified schedule, for State Bargaining Unit 6 employee compensation for expenditure in the 201516 fiscal year. The bill would appropriate to the Controller from the General Fund, unallocated special funds, including federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 201617 or 201718 fiscal years, as specified.
(2)The Public Employees Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees Retirement System, prescribes methods for calculating the state employer contribution for postemployment health care benefits for eligible retired public employees and their families and for the vesting of these benefits. PEMHCA requires the employer contribution for an employee or annuitant who is in employment or retired from state service to be adjusted by the Legislature in the annual Budget Act, as specified. PEMHCA prescribes different ways of calculating the employer contributions for employees and annuitants depending on date of hire, years of service, and bargaining unit.
This bill, for state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified, would limit the employer contribution for annuitants to 80% of the weighted average of the health benefit plan premiums for an active employee enrolled for self-alone, during the benefit year to which the formula is applied, for the 4 health benefit plans with the largest state civil service enrollment, as specified. The bill would similarly limit the employer contribution for an enrolled family member of an annuitant to 80% of the weighted average of the additional premiums required for enrollment of those family members during the benefit year to which the formula is applied and would provide the same limit on employer contributions for annuitants enrolled in Medicare health benefit plans.
(3)PEMHCA requires state employees to have a specified number of years of state service, depending on hiring date and other factors, before they may receive any portion of the employer contribution payable for annuitants for postretirement health benefits and increases the percentage they may receive based upon additional years of service.
This bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified, from receiving any portion of the employer contribution payable for annuitants unless the person is credited with at least 15 years of state service at the time of retirement. The bill would prescribe the percentage of the employer contribution payable for postretirement health benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
(4)Existing law permits the state to assume a function from a public agency and the related personnel and, in this circumstance, prohibits service being credited pursuant to specified provisions for purposes of employer contributions for postretirement health benefits, unless certain conditions are met.
This bill would additionally apply the prohibition described above to specified formulations for the payment of employer contributions for postretirement health benefits that are related to Bargaining Units 6, 9, 10, and 12.
(5)PEMHCA generally requires that an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan be paid the amount of the Medicare Part B premiums, as specified, and prohibits this payment from exceeding the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. Existing law excepts from this requirement state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10.
This bill would also except from the requirement described above state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified.
(6)PEMHCA establishes the Public Employees Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. PEMHCA establishes the Annuitants Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding of health care coverage for annuitants, including administrative costs. PEMHCA defines prefunding for these purposes. Existing law requires the state and employees of State Bargaining Unit 9 or 10 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019, and prescribes schedules of contribution percentages in this regard.
This bill would require the state and employees of State Bargaining Unit 6 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2018, and would prescribe a schedule of contribution percentages in this regard, with the contributions to be deposited in the Annuitants Health Care Coverage Fund. By depositing new revenue in a continuously appropriated fund, this bill would make an appropriation.
(7)Existing law, the State Employees Dental Care Act, authorizes the state to enter into contracts, upon negotiations with employee organizations, with carriers for dental care plans for employees, annuitants, and eligible family members. Existing law permits these plans to include premiums to be paid by employees and annuitants and also authorizes the plans to be self-funded if an employer determines it to be cost effective. Existing law prohibits specified employees from receiving an employer contribution for these benefits for annuitants unless the person is credited with 10 or more years of state service.
This bill would prohibit state employees, as specified, who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6 from receiving an employer contribution for dental benefits, as described above, for annuitants unless the person is credited with 15 or more years of state service. The bill would prescribe the percentage of the employer contribution payable for these dental benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
(8)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
(1)Existing law provides that a provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees that requires the expenditure of funds does not become effective unless approved by the Legislature in the annual Budget Act.
This bill would approve provisions of a memorandum of understanding entered into between the state employer and State Bargaining Unit 6, the California Correctional Peace Officers Association, that require the expenditure of funds, and would provide that these provisions will become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.
This bill would provide that provisions of the memorandum of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature, and would require the state employer and the affected employee organization to meet and confer to renegotiate the affected provisions if funds for those provisions are not specifically appropriated by the Legislature. The bill would appropriate $31,869,000 in augmentation of certain items of the Budget Act of 2015, according to a specified schedule, for State Bargaining Unit 6 employee compensation for expenditure in the 201516 fiscal year. The bill would appropriate to the Controller from the General Fund, unallocated special funds, including federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 201617 or 201718 fiscal years, as specified.
(2)The Public Employees Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees Retirement System, prescribes methods for calculating the state employer contribution for postemployment health care benefits for eligible retired public employees and their families and for the vesting of these benefits. PEMHCA requires the employer contribution for an employee or annuitant who is in employment or retired from state service to be adjusted by the Legislature in the annual Budget Act, as specified. PEMHCA prescribes different ways of calculating the employer contributions for employees and annuitants depending on date of hire, years of service, and bargaining unit.
This bill, for state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified, would limit the employer contribution for annuitants to 80% of the weighted average of the health benefit plan premiums for an active employee enrolled for self-alone, during the benefit year to which the formula is applied, for the 4 health benefit plans with the largest state civil service enrollment, as specified. The bill would similarly limit the employer contribution for an enrolled family member of an annuitant to 80% of the weighted average of the additional premiums required for enrollment of those family members during the benefit year to which the formula is applied and would provide the same limit on employer contributions for annuitants enrolled in Medicare health benefit plans.
(3)PEMHCA requires state employees to have a specified number of years of state service, depending on hiring date and other factors, before they may receive any portion of the employer contribution payable for annuitants for postretirement health benefits and increases the percentage they may receive based upon additional years of service.
This bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified, from receiving any portion of the employer contribution payable for annuitants unless the person is credited with at least 15 years of state service at the time of retirement. The bill would prescribe the percentage of the employer contribution payable for postretirement health benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
(4)Existing law permits the state to assume a function from a public agency and the related personnel and, in this circumstance, prohibits service being credited pursuant to specified provisions for purposes of employer contributions for postretirement health benefits, unless certain conditions are met.
This bill would additionally apply the prohibition described above to specified formulations for the payment of employer contributions for postretirement health benefits that are related to Bargaining Units 6, 9, 10, and 12.
(5)PEMHCA generally requires that an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan be paid the amount of the Medicare Part B premiums, as specified, and prohibits this payment from exceeding the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. Existing law excepts from this requirement state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10.
This bill would also except from the requirement described above state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified.
(6)PEMHCA establishes the Public Employees Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. PEMHCA establishes the Annuitants Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding of health care coverage for annuitants, including administrative costs. PEMHCA defines prefunding for these purposes. Existing law requires the state and employees of State Bargaining Unit 9 or 10 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019, and prescribes schedules of contribution percentages in this regard.
This bill would require the state and employees of State Bargaining Unit 6 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2018, and would prescribe a schedule of contribution percentages in this regard, with the contributions to be deposited in the Annuitants Health Care Coverage Fund. By depositing new revenue in a continuously appropriated fund, this bill would make an appropriation.
(7)Existing law, the State Employees Dental Care Act, authorizes the state to enter into contracts, upon negotiations with employee organizations, with carriers for dental care plans for employees, annuitants, and eligible family members. Existing law permits these plans to include premiums to be paid by employees and annuitants and also authorizes the plans to be self-funded if an employer determines it to be cost effective. Existing law prohibits specified employees from receiving an employer contribution for these benefits for annuitants unless the person is credited with 10 or more years of state service.
This bill would prohibit state employees, as specified, who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6 from receiving an employer contribution for dental benefits, as described above, for annuitants unless the person is credited with 15 or more years of state service. The bill would prescribe the percentage of the employer contribution payable for these dental benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
(8)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
(1)Existing law provides that a provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees that requires the expenditure of funds does not become effective unless approved by the Legislature in the annual Budget Act.
This bill would approve provisions of a memorandum of understanding entered into between the state employer and State Bargaining Unit 6, the California Correctional Peace Officers Association, that require the expenditure of funds, and would provide that these provisions will become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.
This bill would provide that provisions of the memorandum of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature, and would require the state employer and the affected employee organization to meet and confer to renegotiate the affected provisions if funds for those provisions are not specifically appropriated by the Legislature. The bill would appropriate $31,869,000 in augmentation of certain items of the Budget Act of 2015, according to a specified schedule, for State Bargaining Unit 6 employee compensation for expenditure in the 201516 fiscal year. The bill would appropriate to the Controller from the General Fund, unallocated special funds, including federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 201617 or 201718 fiscal years, as specified.
(2)The Public Employees Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees Retirement System, prescribes methods for calculating the state employer contribution for postemployment health care benefits for eligible retired public employees and their families and for the vesting of these benefits. PEMHCA requires the employer contribution for an employee or annuitant who is in employment or retired from state service to be adjusted by the Legislature in the annual Budget Act, as specified. PEMHCA prescribes different ways of calculating the employer contributions for employees and annuitants depending on date of hire, years of service, and bargaining unit.
This bill, for state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified, would limit the employer contribution for annuitants to 80% of the weighted average of the health benefit plan premiums for an active employee enrolled for self-alone, during the benefit year to which the formula is applied, for the 4 health benefit plans with the largest state civil service enrollment, as specified. The bill would similarly limit the employer contribution for an enrolled family member of an annuitant to 80% of the weighted average of the additional premiums required for enrollment of those family members during the benefit year to which the formula is applied and would provide the same limit on employer contributions for annuitants enrolled in Medicare health benefit plans.
(3)PEMHCA requires state employees to have a specified number of years of state service, depending on hiring date and other factors, before they may receive any portion of the employer contribution payable for annuitants for postretirement health benefits and increases the percentage they may receive based upon additional years of service.
This bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified, from receiving any portion of the employer contribution payable for annuitants unless the person is credited with at least 15 years of state service at the time of retirement. The bill would prescribe the percentage of the employer contribution payable for postretirement health benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
(4)Existing law permits the state to assume a function from a public agency and the related personnel and, in this circumstance, prohibits service being credited pursuant to specified provisions for purposes of employer contributions for postretirement health benefits, unless certain conditions are met.
This bill would additionally apply the prohibition described above to specified formulations for the payment of employer contributions for postretirement health benefits that are related to Bargaining Units 6, 9, 10, and 12.
(5)PEMHCA generally requires that an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan be paid the amount of the Medicare Part B premiums, as specified, and prohibits this payment from exceeding the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. Existing law excepts from this requirement state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10.
This bill would also except from the requirement described above state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified.
(6)PEMHCA establishes the Public Employees Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. PEMHCA establishes the Annuitants Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding of health care coverage for annuitants, including administrative costs. PEMHCA defines prefunding for these purposes. Existing law requires the state and employees of State Bargaining Unit 9 or 10 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019, and prescribes schedules of contribution percentages in this regard.
This bill would require the state and employees of State Bargaining Unit 6 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2018, and would prescribe a schedule of contribution percentages in this regard, with the contributions to be deposited in the Annuitants Health Care Coverage Fund. By depositing new revenue in a continuously appropriated fund, this bill would make an appropriation.
(7)Existing law, the State Employees Dental Care Act, authorizes the state to enter into contracts, upon negotiations with employee organizations, with carriers for dental care plans for employees, annuitants, and eligible family members. Existing law permits these plans to include premiums to be paid by employees and annuitants and also authorizes the plans to be self-funded if an employer determines it to be cost effective. Existing law prohibits specified employees from receiving an employer contribution for these benefits for annuitants unless the person is credited with 10 or more years of state service.
This bill would prohibit state employees, as specified, who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6 from receiving an employer contribution for dental benefits, as described above, for annuitants unless the person is credited with 15 or more years of state service. The bill would prescribe the percentage of the employer contribution payable for these dental benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
(8)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
The Legislature finds and declares that the purpose of this act is to approve the agreement entered into by the state employer and State Bargaining Unit 6 pursuant to Section 3517.5 of the Government Code.
SEC. 2.The provisions of the memorandum of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 6, dated March 15, 2016, and that require the expenditure of funds, are hereby approved for the purposes of subdivision (b) of Section 3517.6 of the Government Code.
SEC. 3.The provisions of the memorandum of understanding approved in Section 2 of this act that require the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature. If funds for these provisions are not specifically appropriated by the Legislature, either the state employer or the affected employee organization may reopen negotiations on all or part of the memorandum of understanding.
SEC. 4.Notwithstanding Section 3517.6 of the Government Code, the provisions of the memorandum of understanding included in Section 2 of this act that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.
SEC. 5.The sum of thirty-one million eight hundred sixty-nine thousand dollars ($31,869,000) is hereby appropriated for State Bargaining Unit 6 for expenditure in the 201516 fiscal year in augmentation of, and for the purpose of, state employee compensation, as provided in Items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget Act of 2015 (Chapter 10 of the Statutes of 2015), in accordance with the following schedule:
(a)Thirty-one million six hundred eighty-seven thousand dollars ($31,687,000) from the General Fund in augmentation of Item 9800-001-0001.
(b)One hundred twenty-two thousand dollars ($122,000) from unallocated special funds in augmentation of Item 9800-001-0494.
(c)Sixty thousand dollars ($60,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988.
SEC. 6.Section 19829.9842 is added to the Government Code, to read:19829.9842.(a)Notwithstanding Section 13340, for the 201617 fiscal year, if the Budget Act of 2016 is not enacted by July 1, 2016, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the above memorandum of understanding until the Budget Act of 2016 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memorandum of understanding for work performed between July 1, 2016, of the 201617 fiscal year and the enactment of the Budget Act of 2016.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) is in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by this bargaining unit shall be at a rate consistent with the applicable memorandum of understanding referenced above.
(c)Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2016, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2016 for each affected department.
(d)This section shall only apply to an employee covered by the term of the State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2018.
SEC. 7.Section 19829.9843 is added to the Government Code, to read:19829.9843.(a)Notwithstanding Section 13340, for the 201718 fiscal year, if the Budget Act of 2017 is not enacted by July 1, 2017, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the above memorandum of understanding until the Budget Act of 2017 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memorandum of understanding for work performed between July 1, 2017, of the 201718 fiscal year and the enactment of the Budget Act of 2017.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) is in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by this bargaining unit shall be at a rate consistent with the applicable memorandum of understanding referenced above.
(c)Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2017, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2017 for each affected department.
(d)This section shall only apply to an employee covered by the term of the State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2018.
SEC. 8.Section 22871.3 of the Government Code is amended to read:22871.3.(a)The employer contribution for each annuitant enrolled in a basic plan shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an employee or annuitant enrolled for self-alone, during the benefit year to which the formula is applied, for the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year.
(b)The employer contribution for each annuitant enrolled in a Medicare health benefit plan in accordance with Section 22844 shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an annuitant enrolled in a Medicare health benefit plan for self-alone, during the benefit year to which the formula is applied, for the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. If the annuitant is eligible for Medicare Part A, with or without cost, and Medicare Part B, regardless of whether the annuitant is actually enrolled in Medicare Part A or Part B, the employer contribution shall not exceed the amount calculated under this subdivision.
(c)This section applies to:
(1) A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3)A state employee represented by State Bargaining Unit 6 who is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(4)A state employee related to State Bargaining Unit 6 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2017.
(d)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5 or Chapter 12 (commencing with Section 3560) of Division 4 of Title 1, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions require the expenditure of funds, the provisions may not become effective unless approved by the Legislature.
SEC. 9.Section 22874.3 is added to the Government Code, to read:22874.3.(a)Notwithstanding Sections 22870, 22871, 22873, and 22874 a state employee, defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 6, shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 years of state service at the time of retirement.
(b)The percentage of the employer contribution payable for postretirement health benefits for an employee subject to this section shall be based on the completed years of credited state service at retirement as shown in the following table:
Years of Service Contribution | Credited Years Percentage |
15 | 50 |
16 | 55 |
17 | 60 |
18 | 65 |
19 | 70 |
20 | 75 |
21 | 80 |
22 | 85 |
23 | 90 |
24 | 95 |
25 or more | 100 |
(c)This section shall apply only to state employees that retire for service. For purposes of this section, state service means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d)This section does not apply to:
(1)Former state employees previously employed before January 1, 2017, who return to state employment on or after January 1, 2017.
(2)State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 6 on or after January 1, 2017.
(3)State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4)State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 6, who later become represented by State Bargaining Unit 6.
(e)Notwithstanding Section 22875, this section shall also apply to a related state employee who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
SEC. 10.Section 22875.5 of the Government Code is amended to read:22875.5.(a)If the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elective officers of that public agency may not be credited as state service for the purposes of Section 22874, 22874.1, 22874.2, 22874.3, or 22875 unless both of the following apply:
(1)The former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee health benefits that were vested at the time that the function and the related personnel were assumed by the state.
(2)The Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement health benefit costs of those personnel.
(b)For noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under Section 22874, 22874.1, 22874.2, 22874.3, or 22875.
SEC. 11.Section 22879 of the Government Code is amended to read:22879.(a)The board shall pay monthly to an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan under this part the amount of the Medicare Part B premiums, exclusive of penalties, except as provided in Section 22831. This payment may not exceed the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. No payment may be made in any month if the difference is less than one dollar ($1).
(b)This section shall be applicable only to state employees, annuitants who retired while state employees, and the family members of those persons.
(c)With respect to an annuitant, the board shall pay to the annuitant the amount required by this section from the same source from which his or her allowance is paid. Those amounts are hereby appropriated monthly from the General Fund to reimburse the board for those payments.
(d)There is hereby appropriated from the appropriate funds the amounts required by this section to be paid to active state employees.
(e)This section does not apply to:
(1)A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2)A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3)A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 6.
(4)A state employee related to State Bargaining Unit 6 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
SEC. 12.Section 22944.5 of the Government Code is amended to read:22944.5.(a) (1) The state and employees in State Bargaining Unit 9 or 10 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2019.
(2)The state and employees in State Bargaining Unit 6 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2018.
(b)(1)The employees in State Bargaining Unit 9 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 0.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 0.5 percent for a total employee contribution of 1.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(2)The employees in State Bargaining Unit 10 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 0.7 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 0.7 percent for a total employee contribution of 1.4 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 2.8 percent of pensionable compensation.
(3)The employees in State Bargaining Unit 6 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2016, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2017, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(c)This section only applies to employees in State Bargaining Unit 6, 9, or 10 who are eligible for health benefits, including permanent intermittent employees.
(d)Contributions paid pursuant to this section shall be deposited in the Annuitants Health Care Coverage Fund and shall not be refundable under any circumstances to an employee in State Bargaining Unit 6, 9, or 10 or his or her beneficiary or survivor.
(e)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(f)This section shall also apply to a state employee related to State Bargaining Unit 6, 9, or 10 who is excepted from the definition of state employee in subdivision (c) of Section 3513.
SEC. 13.Section 22958.1 is added to the Government Code, to read:22958.1.(a)Notwithstanding Sections 22953, 22957, and 22958, the following employees shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 or more years of state service, as defined by this section, at the time of retirement:
(1)A state employee, as defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and is represented by State Bargaining Unit 6.
(2)A state employee related to State Bargaining Unit 6 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(b)The percentage of the employer contribution payable for postretirement dental care benefits for an employee subject to this section shall be based on the funding provision of the plan and the completed years of credited state service at retirement as shown in the following table:
Years of Service Contribution | Credited Years Percentage |
15 | 50 |
16 | 55 |
17 | 60 |
18 | 65 |
19 | 70 |
20 | 75 |
21 | 80 |
22 | 85 |
23 | 90 |
24 | 95 |
25 or more | 100 |
(c)This section shall apply only to state employees that retire for service. For purposes of this section, state service means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d)This section does not apply to:
(1)Former state employees previously employed before January 1, 2017, who return to state employment on or after January 1, 2017.
(2)State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 6 on or after January 1, 2017.
(3)State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4)State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 6, who later become represented by State Bargaining Unit 6.
(e)In those cases where the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elected officers of that public agency may not be credited as state service for the purposes of this section unless the former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee dental benefits that were vested at the time that the function and the related personnel were assumed by the state, and the Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement dental benefit costs of those personnel. For noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under this section.
SEC. 14.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
The Legislature finds and declares that the purpose of this act is to approve the agreement entered into by the state employer and State Bargaining Unit 6 pursuant to Section 3517.5 of the Government Code.
SEC. 2.The provisions of the memorandum of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 6, dated March 15, 2016, and that require the expenditure of funds, are hereby approved for the purposes of subdivision (b) of Section 3517.6 of the Government Code.
SEC. 3.The provisions of the memorandum of understanding approved in Section 2 of this act that require the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature. If funds for these provisions are not specifically appropriated by the Legislature, either the state employer or the affected employee organization may reopen negotiations on all or part of the memorandum of understanding.
SEC. 4.Notwithstanding Section 3517.6 of the Government Code, the provisions of the memorandum of understanding included in Section 2 of this act that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.
SEC. 5.The sum of thirty-one million eight hundred sixty-nine thousand dollars ($31,869,000) is hereby appropriated for State Bargaining Unit 6 for expenditure in the 201516 fiscal year in augmentation of, and for the purpose of, state employee compensation, as provided in Items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget Act of 2015 (Chapter 10 of the Statutes of 2015), in accordance with the following schedule:
(a)Thirty-one million six hundred eighty-seven thousand dollars ($31,687,000) from the General Fund in augmentation of Item 9800-001-0001.
(b)One hundred twenty-two thousand dollars ($122,000) from unallocated special funds in augmentation of Item 9800-001-0494.
(c)Sixty thousand dollars ($60,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988.
SEC. 6.Section 19829.9842 is added to the Government Code, to read:19829.9842.(a)Notwithstanding Section 13340, for the 201617 fiscal year, if the Budget Act of 2016 is not enacted by July 1, 2016, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the above memorandum of understanding until the Budget Act of 2016 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memorandum of understanding for work performed between July 1, 2016, of the 201617 fiscal year and the enactment of the Budget Act of 2016.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) is in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by this bargaining unit shall be at a rate consistent with the applicable memorandum of understanding referenced above.
(c)Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2016, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2016 for each affected department.
(d)This section shall only apply to an employee covered by the term of the State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2018.
SEC. 7.Section 19829.9843 is added to the Government Code, to read:19829.9843.(a)Notwithstanding Section 13340, for the 201718 fiscal year, if the Budget Act of 2017 is not enacted by July 1, 2017, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the above memorandum of understanding until the Budget Act of 2017 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memorandum of understanding for work performed between July 1, 2017, of the 201718 fiscal year and the enactment of the Budget Act of 2017.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) is in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by this bargaining unit shall be at a rate consistent with the applicable memorandum of understanding referenced above.
(c)Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2017, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2017 for each affected department.
(d)This section shall only apply to an employee covered by the term of the State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2018.
SEC. 8.Section 22871.3 of the Government Code is amended to read:22871.3.(a)The employer contribution for each annuitant enrolled in a basic plan shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an employee or annuitant enrolled for self-alone, during the benefit year to which the formula is applied, for the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year.
(b)The employer contribution for each annuitant enrolled in a Medicare health benefit plan in accordance with Section 22844 shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an annuitant enrolled in a Medicare health benefit plan for self-alone, during the benefit year to which the formula is applied, for the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. If the annuitant is eligible for Medicare Part A, with or without cost, and Medicare Part B, regardless of whether the annuitant is actually enrolled in Medicare Part A or Part B, the employer contribution shall not exceed the amount calculated under this subdivision.
(c)This section applies to:
(1) A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3)A state employee represented by State Bargaining Unit 6 who is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(4)A state employee related to State Bargaining Unit 6 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2017.
(d)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5 or Chapter 12 (commencing with Section 3560) of Division 4 of Title 1, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions require the expenditure of funds, the provisions may not become effective unless approved by the Legislature.
SEC. 9.Section 22874.3 is added to the Government Code, to read:22874.3.(a)Notwithstanding Sections 22870, 22871, 22873, and 22874 a state employee, defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 6, shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 years of state service at the time of retirement.
(b)The percentage of the employer contribution payable for postretirement health benefits for an employee subject to this section shall be based on the completed years of credited state service at retirement as shown in the following table:
Years of Service Contribution | Credited Years Percentage |
15 | 50 |
16 | 55 |
17 | 60 |
18 | 65 |
19 | 70 |
20 | 75 |
21 | 80 |
22 | 85 |
23 | 90 |
24 | 95 |
25 or more | 100 |
(c)This section shall apply only to state employees that retire for service. For purposes of this section, state service means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d)This section does not apply to:
(1)Former state employees previously employed before January 1, 2017, who return to state employment on or after January 1, 2017.
(2)State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 6 on or after January 1, 2017.
(3)State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4)State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 6, who later become represented by State Bargaining Unit 6.
(e)Notwithstanding Section 22875, this section shall also apply to a related state employee who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
SEC. 10.Section 22875.5 of the Government Code is amended to read:22875.5.(a)If the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elective officers of that public agency may not be credited as state service for the purposes of Section 22874, 22874.1, 22874.2, 22874.3, or 22875 unless both of the following apply:
(1)The former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee health benefits that were vested at the time that the function and the related personnel were assumed by the state.
(2)The Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement health benefit costs of those personnel.
(b)For noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under Section 22874, 22874.1, 22874.2, 22874.3, or 22875.
SEC. 11.Section 22879 of the Government Code is amended to read:22879.(a)The board shall pay monthly to an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan under this part the amount of the Medicare Part B premiums, exclusive of penalties, except as provided in Section 22831. This payment may not exceed the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. No payment may be made in any month if the difference is less than one dollar ($1).
(b)This section shall be applicable only to state employees, annuitants who retired while state employees, and the family members of those persons.
(c)With respect to an annuitant, the board shall pay to the annuitant the amount required by this section from the same source from which his or her allowance is paid. Those amounts are hereby appropriated monthly from the General Fund to reimburse the board for those payments.
(d)There is hereby appropriated from the appropriate funds the amounts required by this section to be paid to active state employees.
(e)This section does not apply to:
(1)A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2)A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3)A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 6.
(4)A state employee related to State Bargaining Unit 6 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
SEC. 12.Section 22944.5 of the Government Code is amended to read:22944.5.(a) (1) The state and employees in State Bargaining Unit 9 or 10 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2019.
(2)The state and employees in State Bargaining Unit 6 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2018.
(b)(1)The employees in State Bargaining Unit 9 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 0.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 0.5 percent for a total employee contribution of 1.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(2)The employees in State Bargaining Unit 10 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 0.7 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 0.7 percent for a total employee contribution of 1.4 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 2.8 percent of pensionable compensation.
(3)The employees in State Bargaining Unit 6 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2016, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2017, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(c)This section only applies to employees in State Bargaining Unit 6, 9, or 10 who are eligible for health benefits, including permanent intermittent employees.
(d)Contributions paid pursuant to this section shall be deposited in the Annuitants Health Care Coverage Fund and shall not be refundable under any circumstances to an employee in State Bargaining Unit 6, 9, or 10 or his or her beneficiary or survivor.
(e)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(f)This section shall also apply to a state employee related to State Bargaining Unit 6, 9, or 10 who is excepted from the definition of state employee in subdivision (c) of Section 3513.
SEC. 13.Section 22958.1 is added to the Government Code, to read:22958.1.(a)Notwithstanding Sections 22953, 22957, and 22958, the following employees shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 or more years of state service, as defined by this section, at the time of retirement:
(1)A state employee, as defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and is represented by State Bargaining Unit 6.
(2)A state employee related to State Bargaining Unit 6 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(b)The percentage of the employer contribution payable for postretirement dental care benefits for an employee subject to this section shall be based on the funding provision of the plan and the completed years of credited state service at retirement as shown in the following table:
Years of Service Contribution | Credited Years Percentage |
15 | 50 |
16 | 55 |
17 | 60 |
18 | 65 |
19 | 70 |
20 | 75 |
21 | 80 |
22 | 85 |
23 | 90 |
24 | 95 |
25 or more | 100 |
(c)This section shall apply only to state employees that retire for service. For purposes of this section, state service means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d)This section does not apply to:
(1)Former state employees previously employed before January 1, 2017, who return to state employment on or after January 1, 2017.
(2)State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 6 on or after January 1, 2017.
(3)State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4)State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 6, who later become represented by State Bargaining Unit 6.
(e)In those cases where the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elected officers of that public agency may not be credited as state service for the purposes of this section unless the former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee dental benefits that were vested at the time that the function and the related personnel were assumed by the state, and the Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement dental benefit costs of those personnel. For noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under this section.
SEC. 14.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
The Legislature finds and declares that the purpose of this act is to approve the agreement entered into by the state employer and State Bargaining Unit 6 pursuant to Section 3517.5 of the Government Code.
SEC. 2.The provisions of the memorandum of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 6, dated March 15, 2016, and that require the expenditure of funds, are hereby approved for the purposes of subdivision (b) of Section 3517.6 of the Government Code.
SEC. 3.The provisions of the memorandum of understanding approved in Section 2 of this act that require the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature. If funds for these provisions are not specifically appropriated by the Legislature, either the state employer or the affected employee organization may reopen negotiations on all or part of the memorandum of understanding.
SEC. 4.Notwithstanding Section 3517.6 of the Government Code, the provisions of the memorandum of understanding included in Section 2 of this act that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.
SEC. 5.The sum of thirty-one million eight hundred sixty-nine thousand dollars ($31,869,000) is hereby appropriated for State Bargaining Unit 6 for expenditure in the 201516 fiscal year in augmentation of, and for the purpose of, state employee compensation, as provided in Items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget Act of 2015 (Chapter 10 of the Statutes of 2015), in accordance with the following schedule:
(a)Thirty-one million six hundred eighty-seven thousand dollars ($31,687,000) from the General Fund in augmentation of Item 9800-001-0001.
(b)One hundred twenty-two thousand dollars ($122,000) from unallocated special funds in augmentation of Item 9800-001-0494.
(c)Sixty thousand dollars ($60,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988.
SEC. 6.Section 19829.9842 is added to the Government Code, to read:19829.9842.(a)Notwithstanding Section 13340, for the 201617 fiscal year, if the Budget Act of 2016 is not enacted by July 1, 2016, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the above memorandum of understanding until the Budget Act of 2016 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memorandum of understanding for work performed between July 1, 2016, of the 201617 fiscal year and the enactment of the Budget Act of 2016.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) is in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by this bargaining unit shall be at a rate consistent with the applicable memorandum of understanding referenced above.
(c)Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2016, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2016 for each affected department.
(d)This section shall only apply to an employee covered by the term of the State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2018.
SEC. 7.Section 19829.9843 is added to the Government Code, to read:19829.9843.(a)Notwithstanding Section 13340, for the 201718 fiscal year, if the Budget Act of 2017 is not enacted by July 1, 2017, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the above memorandum of understanding until the Budget Act of 2017 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memorandum of understanding for work performed between July 1, 2017, of the 201718 fiscal year and the enactment of the Budget Act of 2017.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) is in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by this bargaining unit shall be at a rate consistent with the applicable memorandum of understanding referenced above.
(c)Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2017, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2017 for each affected department.
(d)This section shall only apply to an employee covered by the term of the State Bargaining Unit 6 (effective July 3, 2015, to July 2, 2018, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2018.
SEC. 8.Section 22871.3 of the Government Code is amended to read:22871.3.(a)The employer contribution for each annuitant enrolled in a basic plan shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an employee or annuitant enrolled for self-alone, during the benefit year to which the formula is applied, for the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year.
(b)The employer contribution for each annuitant enrolled in a Medicare health benefit plan in accordance with Section 22844 shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an annuitant enrolled in a Medicare health benefit plan for self-alone, during the benefit year to which the formula is applied, for the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. If the annuitant is eligible for Medicare Part A, with or without cost, and Medicare Part B, regardless of whether the annuitant is actually enrolled in Medicare Part A or Part B, the employer contribution shall not exceed the amount calculated under this subdivision.
(c)This section applies to:
(c)
(1) This section applies to a A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(d)
(2) This section shall also apply to a A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3)A state employee represented by State Bargaining Unit 6 who is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(4)A state employee related to State Bargaining Unit 6 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2017.
(e)
(d)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5 or Chapter 12 (commencing with Section 3560) of Division 4 of Title 1, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions require the expenditure of funds, the provisions may not become effective unless approved by the Legislature.
SEC. 9.Section 22874.3 is added to the Government Code, to read:22874.3.(a)Notwithstanding Sections 22870, 22871, 22873, and 22874 a state employee, defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 6, shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 years of state service at the time of retirement.
(b)The percentage of the employer contribution payable for postretirement health benefits for an employee subject to this section shall be based on the completed years of credited state service at retirement as shown in the following table:
Years of Service Contribution | Credited Years Percentage |
15 | 50 |
16 | 55 |
17 | 60 |
18 | 65 |
19 | 70 |
20 | 75 |
21 | 80 |
22 | 85 |
23 | 90 |
24 | 95 |
25 or more | 100 |
(c)This section shall apply only to state employees that retire for service. For purposes of this section, state service means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d)This section does not apply to:
(1)Former state employees previously employed before January 1, 2017, who return to state employment on or after January 1, 2017.
(2)State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 6 on or after January 1, 2017.
(3)State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4)State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 6, who later become represented by State Bargaining Unit 6.
(e)Notwithstanding Section 22875, this section shall also apply to a related state employee who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
SEC. 10.Section 22875.5 of the Government Code is amended to read:22875.5.(a)If the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elective officers of that public agency may not be credited as state service for the purposes of Section 22874 22874, 22874.1, 22874.2, 22874.3, or 22875, 22875 unless both of the following apply:
(1)The former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee health benefits that were vested at the time that the function and the related personnel were assumed by the state.
(2)The Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement health benefit costs of those personnel.
(b)For noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under Section 22874 22874, 22874.1, 22874.2, 22874.3, or 22875.
SEC. 11.Section 22879 of the Government Code is amended to read:22879.(a)The board shall pay monthly to an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan under this part the amount of the Medicare Part B premiums, exclusive of penalties, except as provided in Section 22831. This payment may not exceed the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. No payment may be made in any month if the difference is less than one dollar ($1).
(b)This section shall be applicable only to state employees, annuitants who retired while state employees, and the family members of those persons.
(c)With respect to an annuitant, the board shall pay to the annuitant the amount required by this section from the same source from which his or her allowance is paid. Those amounts are hereby appropriated monthly from the General Fund to reimburse the board for those payments.
(d)There is hereby appropriated from the appropriate funds the amounts required by this section to be paid to active state employees.
(e)This section does not apply to:
(1)A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2)A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3)A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 6.
(4)A state employee related to State Bargaining Unit 6 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
SEC. 12.Section 22944.5 of the Government Code is amended to read:22944.5.(a) (1) The state and employees in State Bargaining Unit 9 or 10 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2019.
(2)The state and employees in State Bargaining Unit 6 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2018.
(b)(1)The employees in State Bargaining Unit 9 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 0.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 0.5 percent for a total employee contribution of 1.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(2)The employees in State Bargaining Unit 10 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 0.7 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 0.7 percent for a total employee contribution of 1.4 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 2.8 percent of pensionable compensation.
(3)The employees in State Bargaining Unit 6 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2016, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2017, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(c)This section only applies to employees in State Bargaining Unit 9 6, 9, or 10 who are eligible for health benefits, including permanent intermittent employees.
(d)Contributions paid pursuant to this section shall be deposited in the Annuitants Health Care Coverage Fund and shall not be refundable under any circumstances to an employee in State Bargaining Unit 9 6, 9, or 10 or his or her beneficiary or survivor.
(e)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(f)This section shall also apply to a state employee related to State Bargaining Unit 9 6, 9, or 10 who is excepted from the definition of state employee in subdivision (c) of Section 3513.
SEC. 13.Section 22958.1 is added to the Government Code, to read:22958.1.(a)Notwithstanding Sections 22953, 22957 and 22958, the following employees shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 or more years of state service, as defined by this section, at the time of retirement:
(1)A state employee, as defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017 and is represented by State Bargaining Unit 6.
(2)A state employee related to State Bargaining Unit 6 who is excepted from the definition of state employee in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(b)The percentage of the employer contribution payable for postretirement dental care benefits for an employee subject to this section shall be based on the funding provision of the plan and the completed years of credited state service at retirement as shown in the following table:
Years of Service Contribution | Credited Years Percentage |
15 | 50 |
16 | 55 |
17 | 60 |
18 | 65 |
19 | 70 |
20 | 75 |
21 | 80 |
22 | 85 |
23 | 90 |
24 | 95 |
25 or more | 100 |
(c)This section shall apply only to state employees that retire for service. For purposes of this section, state service means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d)This section does not apply to:
(1)Former state employees previously employed before January 1, 2017, who return to state employment on or after January 1, 2017.
(2)State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 6 on or after January 1, 2017.
(3)State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4)State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 6, who later become represented by State Bargaining Unit 6.
(e)In those cases where the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elected officers of that public agency may not be credited as state service for the purposes of this section unless the former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee dental benefits that were vested at the time that the function and the related personnel were assumed by the state, and the Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement dental benefit costs of those personnel. For noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under this section.
SEC. 14.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
|
Date
|
Status
|
|---|---|
| Apr 21, 2016 | Assembly Rule 96 suspended. |
| May 10, 2016 | Chaptered by Secretary of State. Chapter 12, Statutes of 2016. |
| May 10, 2016 | Approved by the Governor. |
| May 4, 2016 | Enrolled and presented to the Governor at 2:30 p.m. |
| Apr 28, 2016 | Assembly amendments concurred in. (Ayes 31. Noes 2.) Ordered to engrossing and enrolling. |
| Apr 28, 2016 | Assembly amendments concurred in. (Ayes 31. Noes 2. Page 3707.) Ordered to engrossing and enrolling. |
| Apr 25, 2016 | Read third time. Passed. (Ayes 74. Noes 0. Page 4503.) Ordered to the Senate. |
| Apr 25, 2016 | Read third time. Passed. Ordered to the Senate. |
| Apr 25, 2016 | In Senate. Concurrence in Assembly amendments pending. |
| Apr 21, 2016 | Withdrawn from committee. |
| Apr 21, 2016 | Ordered to third reading. |
| Jan 9, 2015 | Introduced. To Com. on RLS. for assignment. To print. |
| Apr 11, 2016 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET. |
| Mar 23, 2015 | Referred to Com. on BUDGET. |
| Mar 23, 2015 | Read third time. Passed. (Ayes 23. Noes 13. Page 384.) Ordered to the Assembly. |
| Mar 23, 2015 | In Assembly. Read first time. Held at Desk. |
| Mar 19, 2015 | Read second time. Ordered to third reading. |
| Mar 18, 2015 | From committee: Ordered to second reading. |
| Feb 5, 2015 | Referred to Com. on RLS. |
| Jan 12, 2015 | Read first time. |
| Jan 12, 2015 | From printer. May be acted upon on or after February 11. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 28, 2016 | Unfinished Business SB95 Committee On B. & F.R. (Leno) Concurrence | Senate Floor |
Passed |
|
| Apr 25, 2016 | SB 95 B. & F. R. Senate Third Reading By TING | Assembly Floor |
Passed |
|
| Mar 23, 2015 | Senate 3rd Reading SB95 Committee On B. & F.R. (Leno) | Senate Floor |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Correctional Peace Officers Association | ** Support | Apr 28, 2016 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 95
:
SENATE FLOOR: Not relevant
ASSEMBLY FLOOR: 74-0, 4/25/16 - See last page for vote
DIGEST: This bill provides legislative approval of the memorandum of understanding (MOU) entered into between the state and Bargaining Unit (BU) 6 (Corrections), represented exclusively by the California Correctional Peace Officers Association (CCPOA). The BU 6 agreement affects approximately 26,835 full-time employees.
Assembly Amendments delete the Senate version of the bill, which expressed the intent of the Legislature to enact statutory changes relating to Budget Act of 2015, and insert the current language.
ANALYSIS: This bill provides the BU 6 MOU shall be effective from July 3, 2015 through July 2, 2018. Specifically, this bill enacts the following:
Retiree Health Benefits
- Employer Contribution for Active State Employees
- Effective the pay period following ratification, the state’s monthly health benefit contribution for each employee shall continue to be a flat dollar amount equal to 80 percent of the weighted average of the basic health benefit plan premiums of the four largest enrolled basic health plans. For each employee with enrolled family members, the employer shall continue to contribute an additional flat dollar amount equal to 80 percent of the weighted average of the additional premiums. The flat dollar amounts shall be increased, as appropriate, pursuant to the formulas on January 1, 2017, and January 1, 2018.
- Employer Contribution for Future Retirees
- Employees first hired on or after January 1, 2017, will receive an employer contribution for retiree health benefits based on an “80/80” formula. Retirees and their dependents enrolled in a basic health benefit plan will receive an employer contribution equal to 80 percent of the weighted average premium of the four largest basic health benefit plans, based on state active employee enrollment. Retirees and their dependents enrolled in a Medicare health benefit plan will receive an employer contribution equal to 80 percent of the weighted average premium of the four largest Medicare health benefit plans, based on state retiree enrollment.
- Prefunding of Other Post-Employment Benefits
- Beginning July 1, 2016, the state and BU 6 members will prefund retiree healthcare with the goal of reaching 50 percent cost sharing of actuarially-determined total normal cost for employer and employees by July 1, 2018. The state and employees will each make the following contributions:
- Effective July 1, 2016, 1.3 percent of pensionable compensation.
- Effective July 1, 2017, an additional 1.3 percent for a total of 2.6 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.4 percent for a total of 4.0 percent of pensionable compensation.
- Post-Employment Health and Dental Benefit Vesting Schedule
- All employees first hired on or after January 1, 2017, will be subject to an extended vesting schedule providing 50 percent of the employer contribution upon completion of 15 years of state service, increasing five percent for each additional year of service, until the employee is 100 percent vested at 25 years of state service.
- Medicare Part B Supplemental Benefit
- All employees first hired on or after January 1, 2017, will no longer be eligible to use the employer contribution for retiree health benefits for Medicare Part B premiums.
Compensation
- General Salary Increase (GSI)
- Effective the first day of the pay period following ratification by the Legislature and the membership, all BU 6 represented classifications shall receive a three percent GSI.
- Effective July 1, 2017, all BU 6 represented classifications shall receive a three percent GSI.
- Effective July 1, 2018, all BU 6 represented classifications shall receive a three percent GSI.
- Retention and Recruitment Incentives
- Effective the first day of the pay period following ratification by the Legislature and the membership, increases the annual incentive, payable semi-annually, for Avenal, Ironwood, Chuckawalla Valley, Calipatria and Centinela state prisons from $2,400 to $2,600. This provision also establishes the same incentive for Pelican Bay, California Correctional Center and High Desert state prisons.
- Senior Peace Officer Pay Differential
- Effective July 1, 2016, increases each step of the senior peace officer pay differential by one percent. Employees with 17 years of experience would receive a two percent pay differential and employees with 25 or more years of service would receive a nine percent pay differential.
- Uniform Allowance
- Increases the annual uniform allowance from $530 to $950 for full-time employees, excluding medical technical assistants (MTA).
- Increases the annual uniform allowance from $305 to $546 for MTAs.
Miscellaneous Sections of the MOU
- New Sections
- Establishes a health and safety grievance process (Article 6.16).
- Effective May 1, 2016, and depending on available departmental funds, permits the cash out of up to 80 hours of leave per year (Article 10.22).
- Incorporates Side Letter 10 regarding retired annuitants, which states that retired annuitants are members of BU 6 for purposes of dues deduction, agency fee and representation, and establishes a hiring process for retired annuitants (Article 18.01).
- Establishes a process and criteria for correctional counselor I to request a transfer between institutions (Article 20.06).
- Establishes a voluntary overtime process for correctional counselor I (Article 20.07).
- Provides correctional counselor desktop computers with internet access. (Article 20.08).
- Prohibits a furlough program or a mandatory personal leave program during the term of the agreement (Article 27.05).
- Amends Existing Sections
- Increases the Benefit Trust Fund contributions by an additional $14 million, phased-in $7 million per year for two years beginning July 1, 2016, for a total of $19 million upon full implementation. The Benefit Trust Fund provides a number of benefits to members, including legal services and vision, life, and dental insurance. This proposal includes language clarifying that these funds can only be used to subsidize the cost of benefit programs for BU 6 members (Article 13.10).
- Effective the first day of the pay period following ratification by the Legislature and the union, includes physical fitness pay in regular base pay (Article 15.07). This proposal will provide all BU 6 members $130 monthly bonus and incorporate the bonus as a part of employee’s base pay.
- Clarifies that employees who have insufficient sick leave can use up to twenty four hours annually of other leave for illness and additional leave upon hiring authority approval. The employer can now require a doctor’s note from an employee with a demonstrable pattern of sick leave and when an employee is unable to work overtime due to illness. Adds language regarding what sick leave absences will not count as part of corrective or disciplinary actions (Article 10.02).
- Adds language that allows employees to change watch and/or regular day off to accommodate military service and avoid using leave credits (Article 10.17).
- Extends the pay for “dead time” from one hour to two hours (Article 11.03).
- Allows time off for jury duty, subpoenaed witness, and military leave to be counted as time worked for the purposes of overtime calculations (Article 11.08 and Article 11.11).
- Effective the first day of the pay period following ratification by the Legislature and the membership, increases the Overtime Meal Allowance from $6.00 to $8.00 (Article 14.02).
- Effective the first day of the pay period following ratification by the Legislature and the membership, increases the monthly housing stipend for the Correctional Training Facility, San Quentin, and Salinas Valley state prisons from $175 to $200 (Article 15.02).
- Amends various operational provisions of the existing contract such as requiring the Division of Juvenile Justice to annually provide CCPOA a copy of on-the-job training materials and establishes when on-the-job training will be completed. (Article 8.05).
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Department of Human Resources (CalHR), this bill results in the following costs:
- Fiscal Year 2015-16: $26.1 million ($26.0 million General Fund)
- Fiscal Year 2016-17: $207.6 million ($206.5 million General Fund)
- Total Budgetary Cost from 2015-16 to2018-19: $1,094.5 million ($1,088.4 million General Fund)
In addition, according to CalHR roughly $80 million General Fund a year, will be absorbed within departmental resources for costs associated with leave cash out.
California Correctional Peace Officers Association
OPPOSITION: (Verified 4/25/16)
None received
ASSEMBLY FLOOR: 74-0, 4/25/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Wood, Rendon
NO VOTE RECORDED: Brough, Chang, Beth Gaines, Harper, Olsen, Williams
4/27/16 15:57:14
**** END ****
SENATE THIRD READING
STR Bill Id:SB 95
Author:(Committee on Budget and Fiscal Review)
As Amended Ver:April 11, 2016
Majority vote. Budget Bill Appropriation Takes Effect Immediately
SENATE VOTE: 23-13
SUMMARY: Amends the 2015-16 Budget Act to provide legislative ratification for the memoranda of understanding (MOU) agreed to by the state and Bargaining Unit (BU) 6. Specifically, this bill provides legislative ratification for the MOU for BU 6 represented exclusively by the California Correctional Peace Officers Association (CCPOA).
EXISTING LAW:
- Establishes the Ralph C. Dills Act, which requires the state to collectively bargain with the exclusive representatives of employee groups (i.e. BUs) regarding wages and working conditions, and to define negotiated agreements in MOUs.
- Establishes the California Department of Human Resources (CalHR) as the official representative of the Governor in all matters related to collective bargaining with state employees.
- Requires that any MOU between the state and an exclusive representative must be ratified by the Legislature.
- Establishes the California Public Employees' Retirement System (CalPERS), which administers health and retirement benefits for state employees.
- Requires the Legislative Analyst's Office (LAO) to analyze all state MOUs and to provide analyses of an MOU and its fiscal impact to the Legislature within 10 days of receipt of an MOU from CalHR.
- Provides that fully vested state retirees (e.g., with 20 or more years of state employment) are entitled to an employer contribution for retiree health care equal to 100% of the weighted average premium of the four health plans most highly utilized by all members. Dependents are eligible for a contribution based on 90% of the average additional premiums paid for dependents during the benefit year in which the formula is applied. This is referred to as the 100/90 formula.
- Requires that Medicare-eligible retirees enroll in Medicare and choose a Medicare-coordinated health plan. Since these plans may be cheaper than non-Medicare (or "Basic" plans), thus resulting in some portion of the employer contribution going unused, current law requires that any unused portion of the 100/90 formula contributions may be applied to reimburse retirees for the costs of Medicare Part B premiums. These reimbursements are made in the form of an additional payment to the retiree on the retirement warrant up to the cost of the Part B premium. Whether or not a retiree receives the Medicare Part B reimbursement in full or in part depends upon the cost of that retiree's health plan.
- Provides that most state employees (those hired after 1985 or 1989, depending on class) must work for 10 years to receive 50% of the 100/90 formula, with an additional 5% per year of service until, after 20 years, they are vested to receive 100% of the 100/90 formula. Individuals hired prior to 1985 or 1989 could be subject to either five-year or 10-year vesting for full coverage of the 100/90 formula.
- Provides that retirees who were covered in certain BUs while actively employed will receive an employer retiree health contribution based on the 80/80 formula (i.e., 80% of the weighted average premium of the four health plans most highly utilized by all members).
- Provides that the employer contribution for active state employee health care shall be determined through collective bargaining. In its MOU effective 2011 to 2013, BU 6 (CCPOA) agreed to a flat dollar amount, as specified.
FISCAL EFFECT: According to CalHR, this bill results in the following costs:
- Fiscal Year 2015-16: $26.1 million ($26.0 million General Fund)
- Total Incremental Cost: $501.6 million ($498.8 million General Fund)
- Total Budgetary Cost: $1,094.5 million ($1,088.4 million General Fund)
COMMENTS: The following information summarizes the general provisions of the MOU provided by CalHR:
Number of Employees: The BU 6 agreement affects approximately 26,835 full-time equivalents.
Health Benefits
- Employer Contribution for Active State Employees
- Effective the pay period following ratification, the state's monthly health benefit contribution for each employee shall continue to be a flat dollar amount equal to 80% of the weighted average of the basic health benefit plan premiums of the four largest enrolled basic health plans. For each employee with enrolled family members, the employer shall continue to contribute an additional flat dollar amount equal to 80% of the weighted average of the additional premiums. The flat dollar amounts shall be increased as appropriate pursuant to the formulas on January 1, 2017, and January 1, 2018.
2) Employer Contribution for Future Retirees
- Employees first hired on or after January 1, 2017, will receive an employer contribution for retiree health benefits based on an "80/80" formula. Retirees and their dependents enrolled in a basic health benefit plan will receive an employer contribution equal to 80% of the weighted average premium of the four largest basic health benefit plans based on state active employee enrollment. Retirees and their dependents enrolled in a Medicare health benefit plan will receive an employer contribution equal to 80% of the weighted average premium of the four largest Medicare health benefit plans based on state retiree enrollment.
- Prefunding of Other Post-Employment Benefits
- Beginning July 1, 2016, the state and BU 6 members will prefund retiree healthcare with the goal of reaching 50% cost sharing of actuarially determined total normal cost for employer and employees by July 1, 2018. The state and employees will each make the following contributions:
- Effective July 1, 2016, 1.3% of pensionable compensation.
- Effective July 1, 2017, an additional 1.3% for a total of 2.6% of pensionable compensation.
- Effective July 1, 2018, an additional 1.4% for a total of 4.0% of pensionable compensation.
- Beginning July 1, 2016, the state and BU 6 members will prefund retiree healthcare with the goal of reaching 50% cost sharing of actuarially determined total normal cost for employer and employees by July 1, 2018. The state and employees will each make the following contributions:
- Post-Employment Health and Dental Benefit Vesting Schedule
- All employees first hired on or after January 1, 2017, will be subject to an extended vesting schedule providing 50% of the employer contribution upon completion of 15 years of state service, increasing 5% for each additional year of service, until the employee is 100% vested at 25 years of state service.
- Medicare Part B Supplemental Benefit
- All employees first hired on or after January 1, 2017, will no longer be eligible to use the employer contribution for retiree health benefits for Medicare Part B premiums.
Compensation
- General Salary Increase (GSI)
- Effective the first day of the pay period following ratification by the Legislature and the membership, all BU 6 represented classifications shall receive a 3% GSI.
- Effective July 1, 2017, all BU 6 represented classifications shall receive a 3% GSI.
- Effective July 1, 2018, all BU 6 represented classifications shall receive a 3% GSI.
- Retention and Recruitment Incentives
- Effective the first day of the pay period following ratification by the Legislature and the membership, increases the annual incentive, payable semi-annually, for Avenal, Ironwood, Chuckawalla Valley, Calipatria and Centinela State Prisons from $2,400 to $2,600. This provision also establishes the same incentive for Pelican Bay, California Correctional Center and High Desert state prisons.
- Senior Peace Officer Pay Differential
- Effective July 1, 2016, increases each step of the Senior Peace Officer Pay Differential by 1%.
- Uniform Allowance
- Increases the annual uniform allowance from $530 to $950 for full time employees, excluding Medical Technical Assistants (MTA).
- Increases the annual uniform allowance from $305 to $546 for MTAs.
Miscellaneous
- New Sections
- Establishes a Health and Safety Grievance Process (Article 6.16).
- Effective May 1, 2016, and depending on available departmental funds, permits the cash out of up to 80 hours of leave per year (Article 10.22).
- Incorporates Side Letter 10 regarding Retired Annuitants (Article 18.01).
- Establishes a process and criteria for Correctional Counselor I to request a transfer between institutions (Article 20.06).
- Establishes a voluntary overtime process for Correctional Counselor I (Article 20.07).
- Provides Correctional Counselor desktop computers with internet access. (Article 20.08).
- Prohibits a furlough program or a mandatory Personal Leave Program during the term of the agreement (Article 27.05).
DURATION
BU 6 – Three years – July 3, 2015 through July 2, 2018.
Support: California Correctional Peace Officers Association
Opposition: None on File.
Analysis Prepared by: Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0002768
SB 95
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Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 95
Author: Committee on Budget and Fiscal Review
Introduced: 1/9/15
DIGEST: This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
ANALYSIS: Senate Bills 75 through 109, inclusive, are to be considered as vehicles for the 2015-16 Budget Trailer Bills.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
None received
OPPOSITION: (Verified 3/19/15)
None received
Prepared by: Karen Chow / SFA / (916) 651-1520
3/20/15 13:25:28
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