SB 28: State public employment: memoranda of understanding: approval.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-03-15
(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 requiring the expenditure of funds in the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, Professional, Administrative, Financial, and Staff Services, State Bargaining Unit 3, Professional Educators and Librarians, State Bargaining Unit 4, Office and Allied, State Bargaining Unit 8, Firefighters, State Bargaining Unit 11, Engineering and Scientific Technicians, State Bargaining Unit 12, Craft and Maintenance, State Bargaining Unit 13, Stationary Engineers, State Bargaining Unit 14, Printing and Allied Trades, State Bargaining Unit 15, Allied services, State Bargaining Unit 17, Registered Nurses, State Bargaining Unit 18, Psychiatric Technicians, State Bargaining Unit 19, Health and Social Services/Professional, State Bargaining Unit 20, Medical and Social Services, and State Bargaining Unit 21, Educational Consultant and Library.
This bill would provide that provisions of the memoranda of understanding described above and 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. The bill would authorize 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 require that the provisions of these memoranda of understanding that require the expenditure of funds to become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.
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 applicable memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 201718, 201819, 201920, or 202021 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 the employment of 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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19, 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.
This bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2017, as specified, and are represented by State Bargaining Units 8, 13, 18, and 19, 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.
(3)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 specified dates and are represented by, or related to, specified state bargaining units.
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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19.
(4)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 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 2, 7, 9, 10, or 12 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. For the state and employees of State Bargaining Unit 6, the date for reaching the goal is July 1, 2018.
This bill would require the state and employees of State Bargaining Unit 8, 13, 18, or 19, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019. The bill would require the state and employees of State Bargaining Units 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2020. The bill would prescribe a schedule of contribution percentages in this regard for each of the affected bargaining units, 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.
(5)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 or for other specified employees unless the person is credited with 15 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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19, 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.
(6)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 requiring the expenditure of funds in the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, Professional, Administrative, Financial, and Staff Services, State Bargaining Unit 3, Professional Educators and Librarians, State Bargaining Unit 4, Office and Allied, State Bargaining Unit 8, Firefighters, State Bargaining Unit 11, Engineering and Scientific Technicians, State Bargaining Unit 12, Craft and Maintenance, State Bargaining Unit 13, Stationary Engineers, State Bargaining Unit 14, Printing and Allied Trades, State Bargaining Unit 15, Allied services, State Bargaining Unit 17, Registered Nurses, State Bargaining Unit 18, Psychiatric Technicians, State Bargaining Unit 19, Health and Social Services/Professional, State Bargaining Unit 20, Medical and Social Services, and State Bargaining Unit 21, Educational Consultant and Library.
This bill would provide that provisions of the memoranda of understanding described above and 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. The bill would authorize 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 require that the provisions of these memoranda of understanding that require the expenditure of funds to become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.
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 applicable memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 201718, 201819, 201920, or 202021 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 the employment of 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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19, 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.
This bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2017, as specified, and are represented by State Bargaining Units 8, 13, 18, and 19, 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.
(3)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 specified dates and are represented by, or related to, specified state bargaining units.
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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19.
(4)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 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 2, 7, 9, 10, or 12 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. For the state and employees of State Bargaining Unit 6, the date for reaching the goal is July 1, 2018.
This bill would require the state and employees of State Bargaining Unit 8, 13, 18, or 19, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019. The bill would require the state and employees of State Bargaining Units 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2020. The bill would prescribe a schedule of contribution percentages in this regard for each of the affected bargaining units, 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.
(5)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 or for other specified employees unless the person is credited with 15 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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19, 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.
(6)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 requiring the expenditure of funds in the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, Professional, Administrative, Financial, and Staff Services, State Bargaining Unit 3, Professional Educators and Librarians, State Bargaining Unit 4, Office and Allied, State Bargaining Unit 8, Firefighters, State Bargaining Unit 11, Engineering and Scientific Technicians, State Bargaining Unit 12, Craft and Maintenance, State Bargaining Unit 13, Stationary Maintenance, State Bargaining Unit 14, Printing and Allied Trades, State Bargaining Unit 15, Allied services, State Bargaining Unit 17, Registered Nurses, State Bargaining Unit 18, Psychiatric Technicians, State Bargaining Unit 19, Health and Social Services/Professional, State Bargaining Unit 20, Medical and Social Services, and State Bargaining Unit 21, Educational Consultant and Library.
This bill would provide that provisions of the memoranda of understanding described above and 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. The bill would authorize 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 require that the provisions of these memoranda of understanding that require the expenditure of funds to become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.
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 applicable memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 201718, 201819, 201920, or 202021 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 the employment of 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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19, 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.
This bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2017, as specified, and are represented by State Bargaining Units 8, 13, 18, and 19, 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.
(3)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 specified dates and are represented by, or related to, specified state bargaining units.
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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19.
(4)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 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 2, 7, 9, 10, or 12 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. For the state and employees of State Bargaining Unit 6, the date for reaching the goal is July 1, 2018.
This bill would require the state and employees of State Bargaining Unit 8, 13, 18 or 19, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019. The bill would require the state and employees of State Bargaining Units 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2020. The bill would prescribe a schedule of contribution percentages in this regard for each of the affected bargaining units, 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.
(5)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 or for other specified employees unless the person is credited with 15 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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19, 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.
(6)This bill would declare that it is to take effect immediately as an urgency statute.(6)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 requiring the expenditure of funds in the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, Professional, Administrative, Financial, and Staff Services, State Bargaining Unit 3, Professional Educators and Librarians, State Bargaining Unit 4, Office and Allied, State Bargaining Unit 8, Firefighters, State Bargaining Unit 11, Engineering and Scientific Technicians, State Bargaining Unit 12, Craft and Maintenance, State Bargaining Unit 13, Stationary Maintenance, State Bargaining Unit 14, Printing and Allied Trades, State Bargaining Unit 15, Allied services, State Bargaining Unit 17, Registered Nurses, State Bargaining Unit 18, Psychiatric Technicians, State Bargaining Unit 19, Health and Social Services/Professional, State Bargaining Unit 20, Medical and Social Services, and State Bargaining Unit 21, Educational Consultant and Library.
This bill would provide that provisions of the memoranda of understanding described above and 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. The bill would authorize 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 require that the provisions of these memoranda of understanding that require the expenditure of funds to become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.
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 applicable memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 201718, 201819, 201920, or 202021 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 the employment of 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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19, 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.
This bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2017, as specified, and are represented by State Bargaining Units 8, 13, 18, and 19, 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.
(3)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 specified dates and are represented by, or related to, specified state bargaining units.
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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19.
(4)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 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 2, 7, 9, 10, or 12 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. For the state and employees of State Bargaining Unit 6, the date for reaching the goal is July 1, 2018.
This bill would require the state and employees of State Bargaining Unit 8, 13, 18 or 19, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019. The bill would require the state and employees of State Bargaining Units 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2020. The bill would prescribe a schedule of contribution percentages in this regard for each of the affected bargaining units, 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.
(5)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 or for other specified employees unless the person is credited with 15 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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19, 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.
(6)This bill would declare that it is to take effect immediately as an urgency statute.
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 Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, which are represented by the Service Employees International Union (SEIU), that require the expenditure of funds and would provide that these provisions will become effective if these provisions are approved by the Legislature in legislation other than the annual Budget Act. The bill would provide that provisions of the memorandum of understanding approved by the 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 employee organization to meet and confer to renegotiate if funds for those provisions are not specifically appropriated by the Legislature.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 Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, which are represented by the Service Employees International Union (SEIU), that require the expenditure of funds and would provide that these provisions will become effective if these provisions are approved by the Legislature in legislation other than the annual Budget Act. The bill would provide that provisions of the memorandum of understanding approved by the 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 employee organization to meet and confer to renegotiate if funds for those provisions are not specifically appropriated by the Legislature.
The Legislature finds and declares that the purpose of this act is to approve the agreements entered into by the state employer and State Bargaining Units 1, 3, 4, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21 pursuant to Section 3517.5 of the Government Code.
SEC. 2.The provisions of the memoranda of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 13, dated October 18, 2016, State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, dated December 3, 2016, State Bargaining Unit 18, dated December 8, 2016, State Bargaining Unit 12, dated December 13, 2016, State Bargaining Unit 19, dated December 16, 2016, and State Bargaining Unit 8, dated December 23, 2016, 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 memoranda 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 memoranda 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.Section 19829.9845 of the Government Code is amended to read:19829.9845.(a)Notwithstanding Section 13340, for the 201718 fiscal year, if the Budget Act of 2017 is not enacted by July 1, 2017, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda 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 memoranda 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 memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 terms of the State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2019, the memoranda of understanding for State Bargaining Units 2, 7, and 18 expire on July 1, 2019, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 6.Section 19829.9846 of the Government Code is amended to read:19829.9846.(a)Notwithstanding Section 13340, for the 201819 fiscal year, if the Budget Act of 2018 is not enacted by July 1, 2018, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda of understanding until the Budget Act of 2018 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2018, of the 201819 fiscal year and the enactment of the Budget Act of 2018.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 2018, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2018 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2019, the memoranda of understanding for State Bargaining Units 2, 7, and 18 expire on July 1, 2019, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 7.Section 19829.9847 is added to the Government Code, to read:19829.9847.(a)Notwithstanding Section 13340, for the 201920 fiscal year, if the Budget Act of 2019 is not enacted by July 1, 2019, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda of understanding until the Budget Act of 2019 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2019, of the 201920 fiscal year and the enactment of the Budget Act of 2019.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 2019, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2019 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 8.Section 19829.9848 is added to the Government Code, to read:19829.9848.(a)Notwithstanding Section 13340, for the 202021 fiscal year, if the Budget Act of 2020 is not enacted by July 1, 2020, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 2020 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, 2020, of the 202021 fiscal year and the enactment of the Budget Act of 2020.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 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 2020, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2020 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 8 expires on July 1, 2021.
SEC. 9.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 2, 6, 7, 8, 12, 13, 18, or 19 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 2, 6, 7, 8, 12, 13, 18, or 19 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.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(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. 10.Section 22874.3 of the Government Code is amended 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 2, 6, 7, 8, 13, 18, or 19 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:
Credited Years | Percentage of Employer |
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 2, 6, 7, 8, 13, 18, or 19 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 2, 6, 7, 8, 13, 18, or 19, who later become represented by State Bargaining Unit 2, 6, 7, 8, 13, 18, or 19.
(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. 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 2, 6, 7, 8, 12, 13, 18, or 19.
(4)A state employee related to State Bargaining Unit 2, 6, 7, 8, 12, 13, 18, or 19 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.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
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 2, 7, 8, 9, 10, 13, 18, or 19 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.
(3)The state and employees in the judicial branch 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, 2017.
(4)The state and employees in State Bargaining Unit 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21 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, 2020.
(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.
(4)The state employees in the judicial branch 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2017, up to an additional 1.5 percent for a total employee contribution of up to 3.0 percent of pensionable compensation. The additional amount shall be determined by the Director of Finance no later than April 1, 2017, based on the actuarially determined normal costs identified in the state valuation.
(C)This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(5)The employees in State Bargaining Unit 12 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.5 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(D)Effective July 1, 2020, an additional 1.1 percent for a total employee contribution of 4.6 percent of pensionable compensation.
(6)The employees in State Bargaining Unit 2 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 0.6 percent for a total employee contribution of 1.3 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 0.7 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(7)The employees in State Bargaining Unit 7 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 2.7 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(8)The employees in State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 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, 2018, 1.2 percent of pensionable compensation.
(B)Effective July 1, 2019, an additional 1.1 percent for a total employee contribution of 2.3 percent of pensionable compensation.
(C)Effective July 1, 2020, an additional 1.2 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(9)The employees in State Bargaining Unit 8 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.5 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.4 percent of pensionable compensation.
(10)The employees in State Bargaining Unit 13 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 3.9 percent of pensionable compensation.
(11)The employees in State Bargaining Unit 18 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(12)The employees in State Bargaining Unit 19 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, 1.0 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(c)This section only applies to employees 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 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 a bargaining unit described in subdivision (a) who is excepted from the definition of state employee in subdivision (c) of Section 3513.
SEC. 13.Section 22958.1 of the Government Code is amended 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 2, 6, 7, 8, 12, 13, 18, or 19.
(2)A state employee related to State Bargaining Unit 2, 6, 7, 8, 12, 13, 18, or 19 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:
Credited Years | Percentage of Employer |
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 prior to 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 2, 6, 7, 8, 12, 13, 18, or 19 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 2, 6, 7, 8, 12, 13, 18, or 19, who later become represented by State Bargaining Unit 2, 6, 7, 8, 12, 13, 18, or 19.
(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 agreements entered into by the state employer and State Bargaining Units 1, 3, 4, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21 pursuant to Section 3517.5 of the Government Code.
SEC. 2.The provisions of the memoranda of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 13, dated October 18, 2016, State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, dated December 3, 2016, State Bargaining Unit 18, dated December 8, 2016, State Bargaining Unit 12, dated December 13, 2016, State Bargaining Unit 19, dated December 16, 2016, and State Bargaining Unit 8, dated December 23, 2016, 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 memoranda 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 memoranda 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.Section 19829.9845 of the Government Code is amended to read:19829.9845.(a)Notwithstanding Section 13340, for the 201718 fiscal year, if the Budget Act of 2017 is not enacted by July 1, 2017, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda 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 memoranda 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 memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 terms of the State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2019, the memoranda of understanding for State Bargaining Units 2, 7, and 18 expire on July 1, 2019, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 6.Section 19829.9846 of the Government Code is amended to read:19829.9846.(a)Notwithstanding Section 13340, for the 201819 fiscal year, if the Budget Act of 2018 is not enacted by July 1, 2018, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda of understanding until the Budget Act of 2018 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2018, of the 201819 fiscal year and the enactment of the Budget Act of 2018.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 2018, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2018 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2019, the memoranda of understanding for State Bargaining Units 2, 7, and 18 expire on July 1, 2019, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 7.Section 19829.9847 is added to the Government Code, to read:19829.9847.(a)Notwithstanding Section 13340, for the 201920 fiscal year, if the Budget Act of 2019 is not enacted by July 1, 2019, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda of understanding until the Budget Act of 2019 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2019, of the 201920 fiscal year and the enactment of the Budget Act of 2019.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 2019, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2019 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 8.Section 19829.9848 is added to the Government Code, to read:19829.9848.(a)Notwithstanding Section 13340, for the 202021 fiscal year, if the Budget Act of 2020 is not enacted by July 1, 2020, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 2020 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, 2020, of the 202021 fiscal year and the enactment of the Budget Act of 2020.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 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 2020, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2020 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 8 expires on July 1, 2021.
SEC. 9.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 2, 6, 7, 8, 12, 13, 18, or 19 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 2, 6, 7, 8, 12, 13, 18, or 19 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.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(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. 10.Section 22874.3 of the Government Code is amended 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 2, 6, 7, 8, 13, 18, or 19 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:
Credited Years | Percentage of Employer |
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 2, 6, 7, 8, 13, 18, or 19 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 2, 6, 7, 8, 13, 18, or 19, who later become represented by State Bargaining Unit 2, 6, 7, 8, 13, 18, or 19.
(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. 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 2, 6, 7, 8, 12, 13, 18, or 19.
(4)A state employee related to State Bargaining Unit 2, 6, 7, 8, 12, 13, 18, or 19 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.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
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 2, 7, 8, 9, 10, 13, 18, or 19 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.
(3)The state and employees in the judicial branch 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, 2017.
(4)The state and employees in State Bargaining Unit 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21 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, 2020.
(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.
(4)The state employees in the judicial branch 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2017, up to an additional 1.5 percent for a total employee contribution of up to 3.0 percent of pensionable compensation. The additional amount shall be determined by the Director of Finance no later than April 1, 2017, based on the actuarially determined normal costs identified in the state valuation.
(C)This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(5)The employees in State Bargaining Unit 12 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.5 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(D)Effective July 1, 2020, an additional 1.1 percent for a total employee contribution of 4.6 percent of pensionable compensation.
(6)The employees in State Bargaining Unit 2 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 0.6 percent for a total employee contribution of 1.3 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 0.7 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(7)The employees in State Bargaining Unit 7 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 2.7 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(8)The employees in State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 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, 2018, 1.2 percent of pensionable compensation.
(B)Effective July 1, 2019, an additional 1.1 percent for a total employee contribution of 2.3 percent of pensionable compensation.
(C)Effective July 1, 2020, an additional 1.2 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(9)The employees in State Bargaining Unit 8 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.5 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.4 percent of pensionable compensation.
(10)The employees in State Bargaining Unit 13 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 3.9 percent of pensionable compensation.
(11)The employees in State Bargaining Unit 18 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(12)The employees in State Bargaining Unit 19 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, 1.0 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(c)This section only applies to employees 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 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 a bargaining unit described in subdivision (a) who is excepted from the definition of state employee in subdivision (c) of Section 3513.
SEC. 13.Section 22958.1 of the Government Code is amended 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 2, 6, 7, 8, 12, 13, 18, or 19.
(2)A state employee related to State Bargaining Unit 2, 6, 7, 8, 12, 13, 18, or 19 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:
Credited Years | Percentage of Employer |
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 prior to 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 2, 6, 7, 8, 12, 13, 18, or 19 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 2, 6, 7, 8, 12, 13, 18, or 19, who later become represented by State Bargaining Unit 2, 6, 7, 8, 12, 13, 18, or 19.
(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 agreements entered into by the state employer and State Bargaining Units 1, 3, 4, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21 pursuant to Section 3517.5 of the Government Code.
SEC. 2.The provisions of the memoranda of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 13, dated October 18, 2016, State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, dated December 3, 2016, State Bargaining Unit 18, dated December 8, 2016, State Bargaining Unit 12, dated December 13, 2016, State Bargaining Unit 19, dated December 16, 2016, and State Bargaining Unit 8, dated December 23, 2016, 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 memoranda 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 memoranda 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.Section 19829.9845 of the Government Code is amended to read:19829.9845.(a)Notwithstanding Section 13340, for the 201718 fiscal year, if the Budget Act of 2017 is not enacted by July 1, 2017, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda 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 memoranda 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 memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 terms of the State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2019, the memoranda of understanding for State Bargaining Units 2, 7, and 18 expire on July 1, 2019, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 6.Section 19829.9846 of the Government Code is amended to read:19829.9846.(a)Notwithstanding Section 13340, for the 201819 fiscal year, if the Budget Act of 2018 is not enacted by July 1, 2018, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda of understanding until the Budget Act of 2018 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2018, of the 201819 fiscal year and the enactment of the Budget Act of 2018.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 2018, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2018 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2019, the memoranda of understanding for State Bargaining Units 2, 7, and 18 expire on July 1, 2019, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 7.Section 19829.9847 is added to the Government Code, to read:19829.9847.(a)Notwithstanding Section 13340, for the 201920 fiscal year, if the Budget Act of 2019 is not enacted by July 1, 2019, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda of understanding until the Budget Act of 2019 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2019, of the 201920 fiscal year and the enactment of the Budget Act of 2019.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 2019, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2019 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 8.Section 19829.9848 is added to the Government Code, to read:19829.9848.(a)Notwithstanding Section 13340, for the 202021 fiscal year, if the Budget Act of 2020 is not enacted by July 1, 2020, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 2020 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, 2020, of the 202021 fiscal year and the enactment of the Budget Act of 2020.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 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 2020, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2020 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 8 expires on July 1, 2021.
SEC. 9.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 2, 6, 7, 8, 12, 13, 18, or 19 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 2, 6, 7, 8, 12, 13, 18, or 19 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.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(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. 10.Section 22874.3 of the Government Code is amended 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 2, 6, 7, 8, 13, 18, or 19 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:
Credited Years | Percentage of Employer |
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 2, 6, 7, 8, 13, 18, or 19 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 2, 6, 7, 8, 13, 18, or 19, who later become represented by State Bargaining Unit 2, 6, 7, 8, 13, 18, or 19.
(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. 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 2, 6, 7, 8, 12, 13, 18, or 19.
(4)A state employee related to State Bargaining Unit 2, 6, 7, 8, 12, 13, 18, or 19 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.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
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 2, 7, 8, 9, 10, 13, 18, or 19 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.
(3)The state and employees in the judicial branch 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, 2017.
(4)The state and employees in State Bargaining Unit 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21 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, 2020.
(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.
(4)The state employees in the judicial branch 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2017, up to an additional 1.5 percent for a total employee contribution of up to 3.0 percent of pensionable compensation. The additional amount shall be determined by the Director of Finance no later than April 1, 2017, based on the actuarially determined normal costs identified in the state valuation.
(C)This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(5)The employees in State Bargaining Unit 12 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.5 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(D)Effective July 1, 2020, an additional 1.1 percent for a total employee contribution of 4.6 percent of pensionable compensation.
(6)The employees in State Bargaining Unit 2 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 0.6 percent for a total employee contribution of 1.3 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 0.7 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(7)The employees in State Bargaining Unit 7 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 2.7 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(8)The employees in State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 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, 2018, 1.2 percent of pensionable compensation.
(B)Effective July 1, 2019, an additional 1.1 percent for a total employee contribution of 2.3 percent of pensionable compensation.
(C)Effective July 1, 2020, an additional 1.2 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(9)The employees in State Bargaining Unit 8 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.5 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.4 percent of pensionable compensation.
(10)The employees in State Bargaining Unit 13 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 3.9 percent of pensionable compensation.
(11)The employees in State Bargaining Unit 18 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(12)The employees in State Bargaining Unit 19 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, 1.0 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(c)This section only applies to employees 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 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 a bargaining unit described in subdivision (a) who is excepted from the definition of state employee in subdivision (c) of Section 3513.
SEC. 13.Section 22958.1 of the Government Code is amended 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 2, 6, 7, 8, 12, 13, 18, or 19.
(2)A state employee related to State Bargaining Unit 2, 6, 7, 8, 12, 13, 18, or 19 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:
Credited Years | Percentage of Employer |
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 prior to 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 2, 6, 7, 8, 12, 13, 18, or 19 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 2, 6, 7, 8, 12, 13, 18, or 19, who later become represented by State Bargaining Unit 2, 6, 7, 8, 12, 13, 18, or 19.
(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 an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order for the provisions of this act to be applicable as soon as possible in the 201617 fiscal year and thereby facilitate the orderly administration of state government at the earliest possible time, it is necessary for this act to take effect immediately.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 agreements entered into by the state employer and State Bargaining Units 1, 3, 4, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21 pursuant to Section 3517.5 of the Government Code.
SEC. 2.The provisions of the memoranda of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 13, dated October 18, 2016, State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, dated December 3, 2016, State Bargaining Unit 18, dated December 8, 2016, State Bargaining Unit 12, dated December 13, 2016, State Bargaining Unit 19, dated December 16, 2016, and State Bargaining Unit 8, dated December 23, 2016, 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 memoranda 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 memoranda 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.Section 19829.9845 of the Government Code is amended to read:19829.9845.(a)Notwithstanding Section 13340, for the 201718 fiscal year, if the Budget Act of 2017 is not enacted by July 1, 2017, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive) inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda 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 memoranda 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 memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 terms of the State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), or State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the terms term of the memoranda applicable memorandum of understanding have has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2019, the memoranda of understanding for State Bargaining Unit Units 2, 7, and 18 expire on July 1, 2019, the memoranda of understanding for State Bargaining Unit 7, Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Unit Units 12 and 19 expire on July 1, 2019. 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 6.Section 19829.9846 of the Government Code is amended to read:19829.9846.(a)Notwithstanding Section 13340, for the 201819 fiscal year, if the Budget Act of 2018 is not enacted by July 1, 2018, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive) inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda of understanding until the Budget Act of 2018 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2018, of the 201819 fiscal year and the enactment of the Budget Act of 2018.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 2018, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2018 for each affected department.
(d)This section shall only apply to an employee covered by the term terms of the State Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive), or State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 13 (effective July 2, 2016, to June 30, 2019, inclusive), State Bargaining Unit 18 (effective July 1, 2016, to July 1, 2019, inclusive), State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the terms term of the memoranda applicable memorandum of understanding have has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2019, the memoranda of understanding for State Bargaining Unit Units 2, 7, and 18 expire on July 1, 2019, the memoranda of understanding for State Bargaining Unit 7, Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Unit Units 12 and 19 expire on July 1, 2019. 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 7.Section 19829.9847 is added to the Government Code, to read:19829.9847.(a)Notwithstanding Section 13340, for the 201920 fiscal year, if the Budget Act of 2019 is not enacted by July 1, 2019, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 memoranda of understanding until the Budget Act of 2019 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2019, of the 201920 fiscal year and the enactment of the Budget Act of 2019.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units 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 2019, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2019 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memoranda of understanding for State Bargaining Units 12 and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
SEC. 8.Section 19829.9848 is added to the Government Code, to read:19829.9848.(a)Notwithstanding Section 13340, for the 202021 fiscal year, if the Budget Act of 2020 is not enacted by July 1, 2020, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 2020 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, 2020, of the 202021 fiscal year and the enactment of the Budget Act of 2020.
(b)If the memorandum of understanding entered into between the state employer and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 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 2020, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2020 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 8 expires on July 1, 2021.
SEC. 9.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 2, 6, 7, or 12 2, 6, 7, 8, 12, 13, 18, or 19 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 2, 6, 7, or 12 2, 6, 7, 8, 12, 13, 18, or 19 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.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(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. 10.Section 22874.3 of the Government Code is amended 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 2, 6, or 7 2, 6, 7, 8, 13, 18, or 19 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:
Credited Years | Percentage of Employer |
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 2, 6, or 7 2, 6, 7, 8, 13, 18, or 19 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 2, 6, or 7, 2, 6, 7, 8, 13, 18, or 19, who later become represented by State Bargaining Unit 2, 6, or 7. 2, 6, 7, 8, 13, 18, or 19.
(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. 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 2, 6, 7, or 12. 2, 6, 7, 8, 12, 13, 18, or 19.
(4)A state employee related to State Bargaining Unit 2, 6, 7, or 12 2, 6, 7, 8, 12, 13, 18, or 19 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.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
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 2, 7, 8, 9, 10, 13, 18, or 12 19 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.
(3)The state and employees in the judicial branch 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, 2017.
(4)The state and employees in State Bargaining Unit 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21 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, 2020.
(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.
(4)The state employees in the judicial branch 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2017, up to an additional 1.5 percent for a total employee contribution of up to 3.0 percent of pensionable compensation. The additional amount shall be determined by the Director of Finance no later than April 1, 2017, based on the actuarially determined normal costs identified in the state valuation.
(C)This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(5)The employees in State Bargaining Unit 12 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, 1.9 1.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.4 1.0 percent for a total employee contribution of 3.3 2.5 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 1.0 percent for a total employee contribution of 4.6 3.5 percent of pensionable compensation.
(D)Effective July 1, 2020, an additional 1.1 percent for a total employee contribution of 4.6 percent of pensionable compensation.
(6)The employees in State Bargaining Unit 2 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 0.6 percent for a total employee contribution of 1.3 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 0.7 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(7)The employees in State Bargaining Unit 7 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 2.7 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(8)The employees in State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 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, 2018, 1.2 percent of pensionable compensation.
(B)Effective July 1, 2019, an additional 1.1 percent for a total employee contribution of 2.3 percent of pensionable compensation.
(C)Effective July 1, 2020, an additional 1.2 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(9)The employees in State Bargaining Unit 8 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, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.5 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.4 percent of pensionable compensation.
(10)The employees in State Bargaining Unit 13 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 3.9 percent of pensionable compensation.
(11)The employees in State Bargaining Unit 18 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, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(12)The employees in State Bargaining Unit 19 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, 1.0 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(c)This section only applies to employees 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 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 a bargaining unit described in subdivision (a) who is excepted from the definition of state employee in subdivision (c) of Section 3513.
SEC. 13.Section 22958.1 of the Government Code is amended 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 2, 6, 7, or 12. 2, 6, 7, 8, 12, 13, 18, or 19.
(2)A state employee related to State Bargaining Unit 2, 6, 7, or 12 2, 6, 7, 8, 12, 13, 18, or 19 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:
Credited Years | Percentage of Employer |
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 prior to 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 2, 6, 7, or 12 2, 6, 7, 8, 12, 13, 18, or 19 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 2, 6, 7, or 12, 2, 6, 7, 8, 12, 13, 18, or 19, who later become represented by State Bargaining Unit 2, 6, 7, or 12. 2, 6, 7, 8, 12, 13, 18, or 19.
(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 an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order for the provisions of this act to be applicable as soon as possible in the 201617 fiscal year and thereby facilitate the orderly administration of state government at the earliest possible time, it is necessary for this act to take effect immediately.
SECTION 1.The Legislature finds and declares that the purpose of this act is to approve an agreement pursuant to Section 3517.5 of the Government Code entered into by the state employer and State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21.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 the Service Employees International Union (SEIU), State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, dated ____, 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 by 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, the state employer and the affected employee organization shall meet and confer to renegotiate the affected provisions.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.The Legislature finds and declares that the purpose of this act is to approve an agreement pursuant to Section 3517.5 of the Government Code entered into by the state employer and State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21.
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 the Service Employees International Union (SEIU), State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, dated ____, 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 by 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, the state employer and the affected employee organization shall meet and confer to renegotiate the affected provisions.
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.
|
Date
|
Status
|
|---|---|
| Mar 15, 2017 | Chaptered by Secretary of State. Chapter 1, Statutes of 2017. |
| Mar 15, 2017 | Approved by the Governor. |
| Mar 14, 2017 | Enrolled and presented to the Governor at 2:30 p.m. |
| Mar 9, 2017 | In Senate. Ordered to engrossing and enrolling. |
| Mar 9, 2017 | Read third time. Passed. (Ayes 61. Noes 14. Page 563.) Ordered to the Senate. |
| Mar 6, 2017 | Read second time. Ordered to third reading. |
| Mar 2, 2017 | From committee: Do pass. (Ayes 22. Noes 5.) (March 2). |
| Feb 23, 2017 | Referred to Com. on BUDGET. |
| Feb 17, 2017 | In Assembly. Read first time. Held at Desk. |
| Feb 17, 2017 | Motion by Senator Monning to lay on table amendments by Senator Stone adopted. (Ayes 25. Noes 9. Page 219.) |
| Feb 13, 2017 | Read second time. Ordered to third reading. |
| Feb 9, 2017 | From committee: Do pass. (Ayes 11. Noes 4. Page 171.) (February 9). |
| Feb 8, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.R. |
| Feb 8, 2017 | From committee: Do pass and re-refer to Com. on B. & F.R. (Ayes 3. Noes 2. Page 162.) (February 6). Re-referred to Com. on B. & F.R. |
| Feb 3, 2017 | Set for hearing February 9 in B. & F.R. pending receipt. |
| Feb 1, 2017 | Set for hearing February 6. |
| Jan 30, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E. & R. |
| Jan 26, 2017 | Re-referred to Coms. on P.E. & R. and B. & F.R. |
| Jan 23, 2017 | Withdrawn from committee. |
| Jan 12, 2017 | Referred to Com. on P.E. & R. |
| Dec 6, 2016 | From printer. May be acted upon on or after January 5. |
| Dec 5, 2016 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Mar 9, 2017 | SB 28 Pan Senate Third Reading By TING | Assembly Floor |
Passed |
|
| Mar 2, 2017 | Do pass. | Assembly Standing Committee on Budget |
Passed |
|
| Feb 17, 2017 | Senate 3rd Reading SB28 Pan | Senate Floor |
Passed |
|
| Feb 9, 2017 | Do pass | Senate Standing Committee on Budget and Fiscal Review |
Passed |
|
| Feb 6, 2017 | Do pass, but first be re-referred to the Committee on [Budget and Fiscal Review ] | Senate Standing Committee on Public Employment and Retirement |
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
|
|---|---|---|
| American Federation of State, County and Municipal Employees- | ** Support | Feb 16, 2017 |
| Cal Fire Local 2881 | ** Support | Feb 16, 2017 |
| California Association Of Psychiatric Technicians | ** Support | Feb 16, 2017 |
| California Department of Human Resources | ** Support | Feb 16, 2017 |
| California Labor Federation | ** Support | Feb 16, 2017 |
| California Professional Firefighters | ** Support | Feb 24, 2017 |
| California State Council Of Service Employees E00789 | * Support | Feb 9, 2017 |
| Cdf Firefighters | * Support | Feb 9, 2017 |
| Health and Social Service Professionals | ** Support | Feb 16, 2017 |
| International Union of Operating Engineers | ** Support | Feb 16, 2017 |
| NEW YORK STATE IRONWORKERS DISTRICT COUNCIL | * Support | Feb 9, 2017 |
| Service Employees International Union Local 1000 | ** Support | Feb 24, 2017 |
SENATE THIRD READING
STR Bill Id:SB 28
Author:(Pan)
As Amended Ver:February 8, 2017
Majority vote. Budget Bill Appropriation Takes Effect Immediately
SENATE VOTE: 26-7
Committee | Votes | Ayes | Noes |
Budget | 22-5 | Ting, Obernolte, Arambula, Bloom, Caballero, Chávez, Chiu, Cooper, Cristina Garcia, Irwin, Jones-Sawyer, Lackey, Limón, Mathis, McCarty, Medina, Mullin, O'Donnell, Rubio, Mark Stone, Weber, Wood | Choi, Fong, Harper, Melendez, Voepel |
SUMMARY: Provides legislative ratification of the six memoranda of understanding (MOUs) agreed to by the state and 14 bargaining units (BUs):
- BUs 1, 3, 4, 11, 14, 15, 17, 20 and 21, represented by the Service Employees International Union (SEIU) Local 1000 with an agreement reached on 12/13/16.
- BU 1 - Professional Administrative, Financial, and Staff Services;
- BU 3 - Professional Educators and Librarians;
- BU 4 - Office and Allied;
- BU 11 - Engineering and Scientific Technicians;
- BU 14 - Printing and Allied Trades;
- BU 15 - Allied Services;
- BU 17 - Registered Nurses;
- BU 20 - Medical and Social Services; and
- BU 21 - Educational Consultant and Library.
- BU 8, Firefighters, represented by California Department of Forestry and Fire Protection Firefighters (CALFIRE) Local 2881 with an agreement reached on 12/23/16.
- BU 12, Craft and Maintenance, represented by International Union of Operating Engineers (IUOE) with an agreement reached on 12/13/16.
- BU 13, Stationary Engineers, represented by International Union of Operating Engineers (IUOE) with an agreement reached on 10/18/16.
- BU 18, Psychiatric Technicians, represented by California Association of Psychiatric Technicians (CAPT) with an agreement reached on 12/8/16.
- BU 19, Health and Social Services/Professional, represented by American Federation of State, County, and Municipal Employees (AFSCME) with an agreement reached on 12/16/16.
EXISTING LAW:
- Establishes the Ralph C. Dills Act, which requires the state to collectively bargain with the exclusive representatives of employee groups (i.e. bargaining units) 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 bargaining units 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.
FISCAL EFFECT: The budget trailer bill includes a continuing appropriation.
COMMENTS: The following information summarizing the general provisions of the MOUs was provided by CalHR.
- Total of 125,766 Employees:
- The SEIU agreement affects approximately 96,608 full-time equivalents.
- The BU 8 agreement affects approximately 5,881 full-time equivalents.
- The BU 12 agreement affects approximately 10,778 full-time equivalents.
- The BU 13 agreement affects approximately 978 full-time equivalents.
- The BU 18 agreement affects approximately 6,283 full-time equivalents.
- The BU 19 agreement affects approximately 5,238 full-time equivalents.
HEALTH BENEFITS
- Employer Contribution for Active State Employees
- The state's monthly benefit contribution for employees in BUs 3, 12, 13, and 18 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.
- For BU 3, effective the first day of the pay period following ratification, the flat dollar amounts shall be adjusted as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, January 1, 2019, and January 1, 2020.
- For BU 12, the flat dollar amounts shall be increased as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, January 1, 2019, and January 1, 2020.
- For BU 13, the flat dollar amounts shall be adjusted as appropriate pursuant to the formulas on the first day of the pay period following ratification, January 1, 2018, and January 1, 2019.
- For BU 18, the flat dollar amounts shall be increased as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, and January 1, 2019.
- The state's monthly benefit contribution for employees in BUs 3, 12, 13, and 18 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.
- Retiree Healthcare and Dental Benefits.
- Employees in BUs 8, 13, 18 and 19 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.
- Employees in BU 8, 13, 18, and 19 first hired on or after January, 1, 2017, will be required to meet an extended vesting schedule for retiree health benefits. Affected employees will be eligible for 50% of the employer contribution toward health benefits upon completion of 15 years of state service, increasing 5% for each additional year of service, until the employee is eligible to receive 100% of the employer contribution upon completion of 25 years of state service.
- Employees in BU 8, 12, 13, 18, and 19 first hired on or after January, 1, 2017, will be required to meet an extended vesting schedule for retiree dental benefits. Affected employees will be eligible for 50% of the employer contribution toward health benefits upon completion of 15 years of state service, increasing 5% for each additional year of service, until the employee is eligible to receive 100% of the employer contribution upon completion of 25 years of state service.
- Employees in BU 8, 12, 13, 18, and 19 first hired on or after January, 1, 2017, shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Prefunding of Other Post-Employment Benefits
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: The state and SEIU members will prefund retiree healthcare with the goal of reaching 50% cost sharing of the actuarially determined total normal cost for employer and employees by July 1, 2020. The state and employees will each make the following contributions:
- Effective July 1, 2018, 1.2% of pensionable compensation.
- Effective July 1, 2019, an additional 1.1% for a total of 2.3% of pensionable compensation.
- Effective July 1, 2020, an additional 1.2% for a total of 3.5% of pensionable compensation.
- BU 8: The state and BU 8 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.5% of pensionable compensation.
- Effective July 1, 2018, an additional 1.5% for a total of 3.0% of pensionable compensation.
- Effective July 1, 2019, an additional 1.4% for a total of 4.4% of pensionable compensation.
- BU 12: Beginning on July 1, 2013, BU 12 members started the process of prefunding their retiree healthcare by contributing 0.5% of their base salary. The state and BU 12 members will now both prefund retiree healthcare with the goal of reaching 50% cost sharing of actuarially determined total normal cost for employer and employees by July 1, 2020. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.5% of pensionable compensation.
- Effective July 1, 2018, an additional 1.0% for a total of 2.5% of pensionable compensation.
- Effective July 1, 2019, an additional 1.0% for a total of 3.5% of pensionable compensation.
- Effective July 1, 2020, an additional 1.1% for a total of 4.6% of pensionable compensation.
- BU 13: The state and BU 13 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.3% of pensionable compensation.
- Effective July 1, 2018, an additional 1.3% for a total of 2.6% of pensionable compensation.
- Effective July 1, 2019, an additional 1.3% for a total of 3.9% of pensionable compensation.
- BU 18: The state and BU 18 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.3% of pensionable compensation.
- Effective July 1, 2018, an additional 1.3% for a total of 2.6% of pensionable compensation.
- Effective July 1, 2019, an additional 1.4% for a total of 4.0% of pensionable compensation.
- BU 19: Beginning July 1, 2017, the state and BU 19 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, a total of 1.0% of pensionable compensation.
- Effective July 1, 2018, an additional 1.0% for a total of 2.0% of pensionable compensation.
- Effective July 1, 2019, an additional 1.0% for a total of 3.0% of pensionable compensation.
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: The state and SEIU members will prefund retiree healthcare with the goal of reaching 50% cost sharing of the actuarially determined total normal cost for employer and employees by July 1, 2020. The state and employees will each make the following contributions:
COMPENSATION
- One-time Bonus
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: Effective upon ratification, all eligible SEIU employees shall receive a one-time bonus of $2,500.
- General Salary Increase (GSI)
- BUs 1, 3, 4, 11, 14, 15, 17, 20 and 21:
- Effective July 1, 2017, employees shall receive a 4% GSI.
- Effective July 1, 2018, employees shall receive a 4% GSI.
- Effective July 1, 2019, employees shall receive 3.5% GSI.
- BU 12
- Effective January 1, 2017, employees shall receive a 3.5% GSI.
- Effective July 1, 2017, employees shall receive a 3.5% GSI.
- Effective July 1, 2018, employees shall receive a 3.5% GSI.
- Effective July 1, 2019, employees shall receive a 3.5% GSI.
- BU 13
- Effective November 1, 2016, employees shall receive a 3% GSI.
- Effective July 1, 2017, employees shall receive a 3% GSI.
- Effective July 1, 2018, employees shall receive a 2% GSI.
- BU 18
- Effective July 1, 2016, employees shall receive a 3% GSI.
- Effective July 1, 2017, employees shall receive a 3% GSI.
- Effective July 1, 2018, employees shall receive a 3% GSI.
- BU 19
- Effective January 1 2017, all Unit 19 represented classifications shall receive a 3.5% GSI.
- Effective July 1, 2017, all Unit 19 represented classifications shall receive a 3.5% GSI.
- Effective July 1, 2018, all Unit 19 represented classifications shall receive a 2.5% GSI.
- Effective July 1, 2019, all Unit 19 represented classifications shall receive a 2% GSI.
- BUs 1, 3, 4, 11, 14, 15, 17, 20 and 21:
- Special Salary Adjustments (SSA)
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: Employees in various classifications will receive SSAs from 2% to 15% effective July 1, 2017.
- BU 8
- Effective January 1, 2017, employees in the Fire Fighter II (Paramedic) classification will receive an SSA of 5.1% and employees in the Fire Captain (Paramedic) classification will receive an SSA of 0.41%.
- Effective January 1, 2017, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II and Fire Fighter II/Paramedic (PM) 4.50%.
- Fire Apparatus Engineer and Fire Apparatus Engineer/PM 6.50%.
- Fire Captain, Fire Captain/PM, and Heavy Fire Equipment Operator 5.30%.
- Battalion Chief 4.54%.
- Forestry Fire Pilot 2.50%.
- Effective July 1, 2017, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II and Fire Fighter II/ PM 4.20%.
- Fire Apparatus Engineer and Fire Apparatus Engineer/PM 6.00%.
- Fire Captain, Fire Captain/PM, and Heavy Fire Equipment Operator 5.00%.
- Forestry Fire Pilot 2.50%.
- Effective July 1, 2018, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II and Fire Fighter II/PM 3.50%.
- Fire Apparatus Engineer and Fire Apparatus Engineer/PM 3.00%.
- Fire Captain, Fire Captain/PM, Forestry Fire Pilot, and Heavy Fire Equipment Operator 2.50%.
- Effective July 1, 2019, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II, Fire Fighter II/PM, Fire Apparatus Engineer, Fire Apparatus Engineer/PM, Fire Captain, Fire Captain/PM, Forestry Fire Pilot, and Heavy Fire Equipment Operator 2.75%.
- Battalion Chief 2.00%.
- Effective July 1, 2020, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II, Fire Fighter II/PM, Fire Apparatus Engineer, Fire Apparatus Engineer/PM, Fire Captain, Fire Captain/PM, Forestry Fire Pilot, and Heavy Fire Equipment Operator 2.50%.
- Battalion Chief 2.00%.
- Effective January 1, 2017, Employees in specialty classifications will receive an SSA of 2.0%. Additionally these employees will receive an SSA of 2.0% effective July 1, 2017, July 1, 2018, July 1, 2019, and July 1, 2020.
- BU 12: Employees in various classifications will receive SSAs from 2% to 5% effective January 1, 2017, and/or July 1, 2017, as specified.
- BU 13: Employees in various classifications will receive SSAs of 2% effective November 1, 2016, July 1, 2017, and July 1, 2018.
- BU 18: Employees in Psychiatric Technician Instructors classification will receive a SSA of 5% effective January 1, 2017, and those in the Senior Psychiatric Technician (Safety) classifications will receive SSAs of 1% effective January 1, 2017, July 1, 2017, and July 1, 2018.
- BU 19: Employees in various classifications will receive SSAs from 5% to 10% effective January 1, 2017.
MISCELLANEOUS
- Agreements: The complete tentative agreements between the state and the employees represented of the affected Bus can be viewed at: http://www.calhr.ca.gov/state-hr-professionals/Pages/bargaining-contracts.aspx
DURATION
- SEIU: July 2, 2016, through January 1, 2020;
- BU 8: January 1, 2017, through July 1, 2021;
- BU 12: July 1, 2015, through July 1, 2020;
- BU 13: July 2, 2016, through June 30, 2019;
- BU 18: July 1, 2016, through July 1, 2019; and
- BU 19: July 1, 2016, through July 1, 2020.
Analysis Prepared by: Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0000021
Date of Hearing: March 2, 2017
ASSEMBLY COMMITTEE ON BUDGET
Phil Ting, Chair
SBPCA Bill Id:SB 28
Author:(Pan) – As Amended Ver:February 8, 2017
SENATE VOTE: 26-7
SUBJECT: State public employment: memoranda of understanding: approval
SUMMARY: Provides legislative ratification of the six memoranda of understanding (MOUs) agreed to by the state and 14 bargaining units (BUs):
- BUs 1, 3, 4, 11, 14, 15, 17, 20 and 21, represented by the Service Employees International Union (SEIU) Local 1000 with an agreement reached on 12/13/16.
- BU 1 - Professional Administrative, Financial, and Staff Services;
- BU 3 - Professional Educators and Librarians;
- BU 4 - Office and Allied;
- BU 11 - Engineering and Scientific Technicians;
- BU 14 - Printing and Allied Trades;
- BU 15 - Allied Services;
- BU 17 - Registered Nurses;
- BU 20 - Medical and Social Services; and
- BU 21 - Educational Consultant and Library.
- BU 8, Firefighters, represented by California Department of Forestry and Fire Protection Firefighters (CALFIRE) Local 2881 with an agreement reached on 12/23/16.
- BU 12, Craft and Maintenance, represented by International Union of Operating Engineers (IUOE) with an agreement reached on 12/13/16.
- BU 13, Stationary Engineers, represented by International Union of Operating Engineers (IUOE) with an agreement reached on 10/18/16.
- BU 18, Psychiatric Technicians, represented by California Association of Psychiatric Technicians (CAPT) with an agreement reached on 12/8/16.
- BU 19, Health and Social Services/Professional, represented by American Federation of State, County, and Municipal Employees (AFSCME) with an agreement reached on 12/16/16.
EXISTING LAW:
- Establishes the Ralph C. Dills Act, which requires the state to collectively bargain with the exclusive representatives of employee groups (i.e. bargaining units) 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 5 year or 10 year vesting for full coverage of the 100/90 formula.
- Provides that retirees who were covered in certain bargaining units 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.
FISCAL EFFECT: The budget trailer bill includes a continuing appropriation.
COMMENTS: The following information summarizing the general provisions of the MOUs was provided by CalHR.
- Total of 125,766 Employees:
- The SEIU agreement affects approximately 96,608 full-time equivalents.
- The BU 8 agreement affects approximately 5,881 full-time equivalents.
- The BU 12 agreement affects approximately 10,778 full-time equivalents.
- The BU 13 agreement affects approximately 978 full-time equivalents.
- The BU 18 agreement affects approximately 6,283 full-time equivalents.
- The BU 19 agreement affects approximately 5,238 full-time equivalents.
HEALTH BENEFITS
- Employer Contribution for Active State Employees
- The state’s monthly benefit contribution for employees in BUs 3, 12, 13, and 18 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.
- For BU 3, effective the first day of the pay period following ratification, the flat dollar amounts shall be adjusted as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, January 1, 2019, and January 1, 2020.
- For BU 12, the flat dollar amounts shall be increased as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, January 1, 2019, and January 1, 2020.
- For BU 13, the flat dollar amounts shall be adjusted as appropriate pursuant to the formulas on the first day of the pay period following ratification, January 1, 2018, and January 1, 2019.
- For BU 18, the flat dollar amounts shall be increased as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, and January 1, 2019.
- The state’s monthly benefit contribution for employees in BUs 3, 12, 13, and 18 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.
- Retiree Healthcare and Dental Benefits.
- Employees in BUs 8, 13, 18 and 19 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.
- Employees in BU 8, 13, 18, and 19 first hired on or after January, 1, 2017, will be required to meet an extended vesting schedule for retiree health benefits. Affected employees will be eligible for 50 percent of the employer contribution toward health benefits upon completion of 15 years of state service, increasing 5 percent for each additional year of service, until the employee is eligible to receive 100 percent of the employer contribution upon completion of 25 years of state service.
- Employees in BU 8, 12, 13, 18, and 19 first hired on or after January, 1, 2017, will be required to meet an extended vesting schedule for retiree dental benefits. Affected employees will be eligible for 50 percent of the employer contribution toward health benefits upon completion of 15 years of state service, increasing five percent for each additional year of service, until the employee is eligible to receive 100 percent of the employer contribution upon completion of 25 years of state service.
- Employees in BU 8, 12, 13, 18, and 19 first hired on or after January, 1, 2017, shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Prefunding of Other Post-Employment Benefits
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: The state and SEIU members will prefund retiree healthcare with the goal of reaching 50 percent cost sharing of the actuarially determined total normal cost for employer and employees by July 1, 2020. The state and employees will each make the following contributions:
- Effective July 1, 2018, 1.2 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.1 percent for a total of 2.3 percent of pensionable compensation.
- Effective July 1, 2020, an additional 1.2 percent for a total of 3.5 percent of pensionable compensation.
- BU 8: The state and BU 8 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.5 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.5 percent for a total of 3.0 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.4 percent for a total of 4.4 percent of pensionable compensation.
- BU 12: Beginning on July 1, 2013, BU 12 members started the process of prefunding their retiree healthcare by contributing 0.5 percent of their base salary. The state and BU 12 members will now both 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, 2020. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.5 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.0 percent for a total of 2.5 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.0 percent for a total of 3.5 percent of pensionable compensation.
- Effective July 1, 2020, an additional 1.1 percent for a total of 4.6 percent of pensionable compensation.
- BU 13: The state and BU 13 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.3 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.3 percent for a total of 2.6 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.3 percent for a total of 3.9 percent of pensionable compensation.
- BU 18: The state and BU 18 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.3 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.3 percent for a total of 2.6 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.4 percent for a total of 4.0 percent of pensionable compensation.
- BU 19: Beginning July 1, 2017, the state and BU 19 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, a total of 1.0 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.0 percent for a total of 2.0 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.0 percent for a total of 3.0 percent of pensionable compensation.
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: The state and SEIU members will prefund retiree healthcare with the goal of reaching 50 percent cost sharing of the actuarially determined total normal cost for employer and employees by July 1, 2020. The state and employees will each make the following contributions:
COMPENSATION
- One-time Bonus
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: Effective upon ratification, all eligible SEIU employees shall receive a one-time bonus of $2,500.
- General Salary Increase (GSI)
- BUs 1, 3, 4, 11, 14, 15, 17, 20 and 21:
- Effective July 1, 2017, employees shall receive a 4 percent GSI.
- Effective July 1, 2018, employees shall receive a 4 percent GSI.
- Effective July 1, 2019, employees shall receive 3.5 percent GSI.
- BU 12
- Effective January 1, 2017, employees shall receive a 3.5 percent GSI.
- Effective July 1, 2017, employees shall receive a 3.5 percent GSI.
- Effective July 1, 2018, employees shall receive a 3.5 percent GSI.
- Effective July 1, 2019, employees shall receive a 3.5 percent GSI.
- BU 13
- Effective November 1, 2016, employees shall receive a 3 percent GSI.
- Effective July 1, 2017, employees shall receive a 3 percent GSI.
- Effective July 1, 2018, employees shall receive a 2 percent GSI.
- BU 18
- Effective July 1, 2016, employees shall receive a 3 percent GSI.
- Effective July 1, 2017, employees shall receive a 3 percent GSI.
- Effective July 1, 2018, employees shall receive a 3 percent GSI.
- BU 19
- Effective January 1 2017, all Unit 19 represented classifications shall receive a 3.5 percent GSI.
- Effective July 1, 2017, all Unit 19 represented classifications shall receive a 3.5 percent GSI.
- Effective July 1, 2018, all Unit 19 represented classifications shall receive a 2.5 percent GSI.
- Effective July 1, 2019, all Unit 19 represented classifications shall receive a 2 percent GSI.
- BUs 1, 3, 4, 11, 14, 15, 17, 20 and 21:
- Special Salary Adjustments (SSA)
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: Employees in various classifications will receive SSAs from 2 percent to 15 percent effective July 1, 2017.
- BU 8
- Effective January 1, 2017, employees in the Fire Fighter II (Paramedic) classification will receive an SSA of 5.1 percent and employees in the Fire Captain (Paramedic) classification will receive an SSA of 0.41 percent.
- Effective January 1, 2017, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II and Fire Fighter II/Paramedic (PM) 4.50 percent.
- Fire Apparatus Engineer and Fire Apparatus Engineer/PM 6.50 percent.
- Fire Captain, Fire Captain/PM, and Heavy Fire Equipment Operator 5.30 percent.
- Battalion Chief 4.54 percent.
- Forestry Fire Pilot 2.50 percent.
- Effective July 1, 2017, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II and Fire Fighter II/ PM 4.20 percent.
- Fire Apparatus Engineer and Fire Apparatus Engineer/PM 6.00 percent.
- Fire Captain, Fire Captain/PM, and Heavy Fire Equipment Operator 5.00 percent.
- Forestry Fire Pilot 2.50 percent.
- Effective July 1, 2018, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II and Fire Fighter II/PM 3.50 percent.
- Fire Apparatus Engineer and Fire Apparatus Engineer/PM 3.00 percent.
- Fire Captain, Fire Captain/PM, Forestry Fire Pilot, and Heavy Fire Equipment Operator 2.50 percent.
- Effective July 1, 2019, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II, Fire Fighter II/PM, Fire Apparatus Engineer, Fire Apparatus Engineer/PM, Fire Captain, Fire Captain/PM, Forestry Fire Pilot, and Heavy Fire Equipment Operator 2.75 percent.
- Battalion Chief 2.00 percent.
- Effective July 1, 2020, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II, Fire Fighter II/PM, Fire Apparatus Engineer, Fire Apparatus Engineer/PM, Fire Captain, Fire Captain/PM, Forestry Fire Pilot, and Heavy Fire Equipment Operator 2.50 percent.
- Battalion Chief 2.00 percent.
- Effective January 1, 2017, Employees in specialty classifications will receive an SSA of 2.0 percent. Additionally these employees will receive an SSA of 2.0 percent effective July 1, 2017, July 1, 2018, July 1, 2019, and July 1, 2020.
- BU 12: Employees in various classifications will receive SSAs from 2 percent to 5 percent effective January 1, 2017, and/or July 1, 2017, as specified.
- BU 13: Employees in various classifications will receive SSAs of 2 percent effective November 1, 2016, July 1, 2017, and July 1, 2018.
- BU 18: Employees in Psychiatric Technician Instructors classification will receive a SSA of 5 percent effective January 1, 2017, and those in the Senior Psychiatric Technician (Safety) classifications will receive SSAs of 1 percent effective January 1, 2017, July 1, 2017, and July 1, 2018.
- BU 19: Employees in various classifications will receive SSAs from 5 percent to 10 percent effective January 1, 2017.
MISCELLANEOUS
- Agreements: The complete tentative agreements between the state and the employees represented of the affected Bus can be viewed at: http://www.calhr.ca.gov/state-hr-professionals/Pages/bargaining-contracts.aspx
DURATION
- SEIU: July 2, 2016, through January 1, 2020;
- BU 8: January 1, 2017, through July 1, 2021;
- BU 12: July 1, 2015, through July 1, 2020;
- BU 13: July 2, 2016, through June 30, 2019;
- BU 18: July 1, 2016, through July 1, 2019; and
- BU 19: July 1, 2016, through July 1, 2020.
REGISTERED SUPPORT / OPPOSITION:
Support
Service Employees International Union (SEIU) Local 1000
California Professional Firefighters
Opposition
None on file.
Analysis Prepared by: Genevieve Morelos / BUDGET / 916-319-2099
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
THIRD READING
Bill No: SB 28
:
SENATE PUBLIC EMP. & RET. COMMITTEE: 3-2, 2/6/17
AYES: Pan, Leyva, Portantino
NOES: Morrell, Moorlach
SENATE BUDGET AND FISCAL REVIEW COMMITTEE: 11-4, 2/9/17
AYES: Mitchell, Beall, Jackson, McGuire, Mendoza, Monning, Pan, Portantino, Roth, Skinner, Wieckowski
NOES: Nielsen, Anderson, Moorlach, Wilk
NO VOTE RECORDED: Glazer, Stone
SOURCE: American Federation of State, County and Municipal Employees-
Health and Social Service Professionals
CAL FIRE Local 2881
California Association of Psychiatric Technicians
California Department of Human Resources
International Union of Operating Engineers
Service Employees International Union, Local 1000
DIGEST: This bill ratifies six memoranda of understanding (MOUs) between 14 bargaining units (BUs), respectively, and the state, represented by the California Department of Human Resources (CalHR). It also makes statutory changes necessary to implement the agreements which cover approximately 126,000 state employees. Amendments in Senate Budget and Fiscal Review Committee removed language making this bill an urgency bill and instead inserted budget bill language.
ANALYSIS:
Existing law:
- Requires, under the State Employee-Employer Relations Act (the Ralph C. Dills Act), that the state, represented by CalHR, collectively bargain with exclusive employee representatives over all aspects related to wages and working conditions, and that agreements be formalized in MOUs.
- Requires the Office of the Legislative Analyst (LAO) to analyze state MOUs and to report on its findings to the Legislature within 10 days of receiving the MOU from CalHR.
- 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.
- 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.
- Provides that retirees who were covered in certain bargaining units 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).
- Requires Medicare-eligible retirees to 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 5 year or 10 year vesting for full coverage of the 100/90 formula.
- Provides that the employer contribution for active state employee health care shall be determined through collective bargaining. In its MOU effective 2015 to 2018, BU 6 California Correctional Peace Officers Association (CCPOA) agreed to a flat dollar amount, as specified.
This bill:
- Approves the MOUs between the state and the following state bargaining units and covers the Full Time Equivalent (FTE) positions (approximately) for the term duration of the agreements as cited below:
Bargaining Unit FTE Covered Term
BU 01 (Admin., Fin., Staff Services) 51,476 3.5 years (7/2/16 - 1/1/20)
BU 03 (Prof. Ed. and Librarians) 1,670 ″
BU 04 (Office and Allied) 25,257 ″
BU 11 (Eng. and Sci. Techs.) 2,557 ″
BU 14 (Printing Trades) 414 ″
BU 15 (Allied Services) 4,589 ″
BU 17 (Registered Nurses) 5,345 ″
BU 20 (Med. and Soc. Serv.) 4,709 ″
BU 21 (Ed Conslt. and Lib) 591 ″
Total SEIU Local 1000 represented FTEs 96,608 3.5 years (7/2/16 - 1/1/20)
BU 08 (Forestry and Fire Protection) 5,881 4.5 years (1/1/17 - 7/1/21)
BU 12 (Craft and Maintenance) 10,778 5 years (7/1/15 - 7/1/20)
BU 13 (Stationary Engineers) 978 3 years (7/2/16 - 6/30/19)
BU 18 (Psych. Techs.) 6,283 3 years (7/1/16 - 7/1/19)
BU 19 (Hlth. and Soc. Serv./Profs.) 5,238 4 years (7/1/16 - 7/1/20)
Total FTEs 125,766
- Provides that expenditure of funds shall not take effect unless funds are specifically appropriated by the Legislature; authorizes the state employer or the affected employee organization to reopen negotiations on all or part of the memorandum of understanding if funds for these provisions are not specifically appropriated; and continuously appropriates funds for the 2017, 2018, 2019, and 2020 fiscal years if the respective budget acts are not enacted by July, 1, of the respective fiscal years.
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 8, 12, 13, 18, and 19 will receive an employer retiree health contribution based on the 80/80 formula.
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 8, 13, 18, and 19 shall be required to meet an extended vesting schedule for retiree health benefits. Affected employees will be eligible for 50 percent of the employer contribution toward health benefits upon completion of 15 years of state service, increasing 5 percent for each additional year of service, until the employee is eligible to receive 100 percent of the employer contribution upon completion of 25 years of state service.
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 8, 12, 13, 18, and 19 shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Provides that:
- The state and employees in State Bargaining Units 8, 13, 18, or 19 shall prefund retiree health care, with the goal of reaching a 50% cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2019.
- The state and employees in State Bargaining Units 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21 shall prefund retiree health care, with the goal of reaching a 50% cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2020.
- Sets out the timing and amount of various contribution rates, as specified (see below), by affected bargaining units toward the goal of prefunding retiree health care.
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 8, 12, 13, 18, and 19 shall be required to meet an extended vesting schedule for retiree dental benefits. Affected employees will be eligible for 50% of the employer contribution toward health benefits upon completion of 15 years of state service, increasing 5% for each additional year of service, until the employee is eligible to receive 100% of the employer contribution upon completion of 25 years of state service.
- Declares that this bill it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Background
- Expired or Expiring Contracts: The majority of state employees in bargaining units covered by this bill are currently working under MOUs that were ratified in 2013 and that expired in July 2016. Additionally, the bill covers over 10,000 employees in bargaining unit 12 whose membership did not ratify a previously negotiated agreement in 2015-16 and who have been working under the terms of an agreement that expired in 2015. The bill also covers approximately 5,881 employees who are working under a contract that expires July 2017.
- MOUs - General Description of Major Provisions: The MOUs provide for general salary increases (GSIs) ranging from 2 to 3.5% annually over the course of the contracts and generally provide a number of Special Salary Adjustments (SSAs) based on position classifications, intended to address retention and recruitment. MOUs provide contract resolution incentives (i.e., signing bonuses), as specified.
The MOUs also require state employees in the covered bargaining units to contribute to pre-funding post-retirement healthcare benefits.
Most MOUs also require new employees hired after January 1, 2017, to work longer before being eligible for post-retirement health and dental coverage; to be subject to the 80/80 formula for calculating the base post-retirement health premium benefit; and prohibit new employees from receiving in retirement a reimbursement of their Medicare Part B premiums.
- General Salary Increases (GSIs) and Employee Post-Retirement Health Contributions:
BU | General Salary Increases | Employee Post- Retirement Health Contributions | ||||||||||||
JUL ‘15 | JUL ‘16 | JUL ‘17 | JUL ‘18 | JUL ‘19 | JUL ‘20 | JUL ‘21 | JUL ‘15 | JUL ‘16 | JUL ‘17 | JUL ‘18 | JUL ‘19 | JUL ‘20 | JUL ‘21 | |
1, 3, 4, 11, 14, 15, 17, 20, 21 | 4% $2500 Bonus Upon Bill Sign | 4% | 3.5% | 1.2% | 1.1% | (1.2%) | ||||||||
08 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.5% | 1.5% | 1.4% | ||||||
12 | 3.5%* 3.5% 7.0 *Jan 1 | 3.5% | 3.5% | 1.5% | 1.0% | 1.0% | 1.1% | |||||||
13 | 3%* *Nov 1 | 3% | 2% | 1.3% | 1.3% | (1.3%) | ||||||||
18 | 3% | 3% | 3% | 1.3% | 1.3% | 1.4% | ||||||||
19 | 3.5%* 3.5% 7.0 *Jan 1 | 2.5% | 2% | 1.0% | 1.0% | 1.0% | ||||||||
* Implementation date other than July 1.
( %) Contribution rate change set for date beyond the term of the MOU.
NB: Each annual contribution rate change is added to the previous year to produce a total cumulative contribution rate.
- Detail Description of MOUs: Please see Senate P.E. &R. committee analysis and CalHR link to tentative agreements at http://www.calhr.ca.gov/state-hr-professionals/Pages/bargaining-contracts.aspx
Related/Prior Legislation
SB 47 (Senate Budget and Fiscal Review Committee, 2017) provides an additional $435.9 million ($203.9 million from the General Fund) for employee compensation costs related to memoranda of understandings for bargaining unit 1, 3, 4, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, and 21, and the related excluded employees.
SB 48 (Senate Budget and Fiscal Review Committee, 2017) makes necessary statutory changes to future retiree health and dental benefits for new employees in bargaining units 1, 3, 4, 11, 14, 15, 17, 20 and 21 to address retiree health benefit unfunded liability.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
According to CalHR fiscal costs are:
(in millions)
MOU | Fiscal Year 2016-17 Cost | Total Incremental Cost | Total Budgetary Cost | ||||||
Bargaining Unit | Total | General Fund | Other Funds | Total | General Fund | Other Funds | Total | General Fund | Other Fund |
1, 3, 4, 11, 14, 15, 17, 20, 21 | $ 261.5 | $ 112.3 | $ 149.2 | $1,518.3 | $ 658.8 | $ 859.5 | $3,955.8 | $1,737.3 | $2,218.5 |
08 | $ 17.0 | $ 11.0 | $ 6.0 | $ 146.2 | $ 94.9 | $ 51.3 | $ 475.6 | $ 308.5 | $ 167.1 |
12 | $ 18.9 | $ 6.1 | $ 12.8 | $ 179.8 | $ 57.7 | $ 122.1 | $ 580.8 | $ 186.7 | $ 394.1 |
13 | $ 3.2 | $ 2.2 | $ 1.0 | $ 17.7 | $ 12.3 | $ 5.4 | $ 48.5 | $ 33.6 | $ 14.9 |
18 | $ 16.5 | $ 15.6 | $ 0.9 | $ 73.3 | $ 69.3 | $ 4.0 | $ 196.7 | $ 185.9 | $ 10.8 |
19 | $ 12.6 | $ 10.3 | $ 2.3 | $ 92.2 | $ 75.5 | $ 16.7 | $ 231.3 | $ 189.3 | $ 42.0 |
Total | $ 329.70 | $ 157.5 | $ 172.2 | $2,027.5 | $ 968.5 | $1,059.0 | $5,488.7 | $2,641.3 | $2,847.4 |
In addition, CalHR estimates that about $139 million General Fund in 2016-17, and about $155 million General Fund in 2017-18 and thereafter, will be absorbed within departmental resources for costs associated with leave cash out.
SUPPORT: (Verified 2/14/17)
American Federation of State, County and Municipal Employees-
Health and Social Service Professionals (co-source)
CAL FIRE Local 2881 (co-source)
California Association of Psychiatric Technicians (co-source)
California Department of Human Resources (co-source)
International Union of Operating Engineers (co-source)
Service Employees International Union, Local 1000 (co-source)
American Federation of State, County and Municipal Employees, Local 2620
California Labor Federation
OPPOSITION: (Verified 2/14/17)
None received
ARGUMENTS IN SUPPORT: According to the California Department of Human Resources, SB 28 represents part of the overall agreement between the State and its represented employees regarding state employee wages and benefits and reflects the MOUs signed between the State and the respective bargaining units.
Service Employees International Union Local 1000 notes that this bill ratifies a tentative agreement that “reflects a hard-fought victory that will have a positive impact on the lives of all of our members.”
California Association of Psychiatric Technicians states that “after many months of vigorous negotiation we have reached a fair and equitable agreement with the administration. The general salary increases are in line with that of other collective bargaining units reached in 2016.”
According to the International Union of Operating Engineers representative, “Unit 12 members have worked without a contract since July 1, 2015 and Unit 13 members have worked without a contract since July 1, 2016. Although the MOUs don’t offer compensation on parity with the private sector, I am encouraged the contracts are moving forward to give our members a semblance of financial security.”
2/16/17 15:27:22
SENATE COMMITTEE ON
Senator Holly Mitchell, Chair
2017 - 2018 Regular
Bill No: Hearing Date: February 9, 2017
Author: | Pan | ||
Version: | February 8, 2017 As amended | ||
Urgency: | No | Fiscal: | |
Consultant: | |||
Subject:
Summary:
This bill makes various statutory changes necessary to implement the employee compensation-related provisions of the Budget Act of 2016. SB 28 makes necessary statutory changes to ratify and implement six memoranda of understanding (MOUs) between 14 bargaining units (BUs), respectively, and the state, represented by the California Department of Human Resources (CalHR). The MOUs cover approximately 126,000 state employees represented by five separate exclusive employee representatives, as follows:
Service Employees International Union, Local 1000 (SEIU 1000)
- BU 1 (Administrative, Financial, and Staff Services)
- BU 3 (Professional Educators and Librarians)
- BU 4 (Office and Allied)
- BU 11 (Engineering and Scientific Technicians)
- BU 14 (Printing Trades)
- BU 15 (Allied Services)
- BU 17 (Registered Nurses)
- BU 20 (Medical and Social Services)
- BU 21 (Education Consultants and Library Employees)
CAL FIRE Local 2881
- BU 8 (California Department of Forestry and Fire Protection Firefighters)
International Union of Operating Engineers (IUOE)
- BU 12 (Craft and Maintenance)
- BU 13 (Stationary Engineers)
California Association of Psychiatric Technicians (CAPT)
- BU 18 (Psychiatric Technician)
American Federation of State, County and Municipal Employees-Health and Social Service Professionals (AFSCME)
- BU 19 (Health and Social Services/Professional)
Existing Law:
- Establishes the Ralph C. Dills Act, which requires the state to collectively bargain with the exclusive representatives of employee groups (i.e. bargaining units) regarding wages and working conditions, and to define negotiated agreements in MOUs.
- Requires the Office of the Legislative Analyst (LAO) to analyze state MOUs and to report on its findings to the Legislature within 10 days of receiving the MOU from CalHR.
- 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.
- 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 percent 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 percent 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.
- Provides that retirees who were covered in certain bargaining units while actively employed will receive an employer retiree health contribution based on the 80/80 formula (i.e., 80 percent of the weighted average premium of the four health plans most highly utilized by all members).
- Requires Medicare-eligible retirees to 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 percent of the 100/90 formula, with an additional five percent per year of service until, after 20 years, they are vested to receive 100 percent 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 the employer contribution for active state employee health care shall be determined through collective bargaining. In its MOU effective 2015 to 2018, BU 6 California Correctional Peace Officers Association (CCPOA) agreed to a flat dollar amount, as specified.
Proposed Law:
- SB 28 approves the MOUs between the state and the following state bargaining units and would cover the full-time equivalent (FTE) positions for the term duration of the agreements as cited below:
Bargaining Unit | FTEs Covered | Term of Agreement |
BU 1 | 51,476 | 7/2/2016 - 1/1/2020 |
BU 3 | 1,670 | 7/2/2016 - 1/1/2020 |
BU 4 | 25,257 | 7/2/2016 - 1/1/2020 |
BU 11 | 2,557 | 7/2/2016 - 1/1/2020 |
BU 14 | 414 | 7/2/2016 - 1/1/2020 |
BU 15 | 4,589 | 7/2/2016 - 1/1/2020 |
BU 17 | 5,345 | 7/2/2016 - 1/1/2020 |
BU 20 | 4,709 | 7/2/2016 - 1/1/2020 |
BU 21 | 591 | 7/2/2016 - 1/1/2020 |
BU 8 | 5,881 | 1/1/2017 - 7/1/2021 |
BU 12 | 10,778 | 7/1/2015 - 7/1/2020 |
BU 13 | 978 | 7/2/2016 - 6/30/2019 |
BU 18 | 6,283 | 7/1/2016 - 7/1/2019 |
BU 19 | 5,238 | 7/1/2016 - 7/1/2020 |
Total FTEs | 125,766 |
- Provides that expenditure of funds shall not take effect unless funds are specifically appropriated by the Legislature; authorizes the state employer or the affected employee organization to reopen negotiations on all or part of the memorandum of understanding if funds for these provisions are not specifically appropriated; and continuously appropriates funds for the 2017, 2018, 2019, and 2020 fiscal years if the respective budget acts are not enacted by July, 1, of the respective fiscal year.
Health Benefits
- Employer Contribution for Active State Employees
- The state’s monthly benefit contributions for employees in BU 3, 12, 13, and 18 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.
- For BU 3, effective the first day of the pay period following ratification, the flat dollar amounts shall be adjusted as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, January 1, 2019, and January 1, 2020.
- For BU 12, the flat dollar amounts shall be increased as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, January 1, 2019, and January 1, 2020.
- For BU 13, the flat dollar amounts shall be adjusted as appropriate pursuant to the formulas on the first day of the pay period following ratification, January 1, 2018, and January 1, 2019.
- For BU 18, the flat dollar amounts shall be increased as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, and January 1, 2019.
- The state’s monthly benefit contributions for employees in BU 3, 12, 13, and 18 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.
- Retiree Healthcare and Dental Benefits.
- Employees in BU 8, 13, 18 and 19 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.
- Employees in BU 8, 13, 18, and 19 first hired on or after January, 1, 2017, will be required to meet an extended vesting schedule for retiree health benefits. Affected employees will be eligible for 50 percent of the employer contribution toward health benefits upon completion of 15 years of state service, increasing 5 percent for each additional year of service, until the employee is eligible to receive 100 percent of the employer contribution upon completion of 25 years of state service.
- Employees in BU 8, 12, 13, 18, and 19 first hired on or after January, 1, 2017, will be required to meet an extended vesting schedule for retiree dental benefits. Affected employees will be eligible for 50 percent of the employer contribution toward health benefits upon completion of 15 years of state service, increasing five percent for each additional year of service, until the employee is eligible to receive 100 percent of the employer contribution upon completion of 25 years of state service.
- Employees in BU 8, 12, 13, 18, and 19 first hired on or after January, 1, 2017, shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Prefunding of Other Post-Employment Benefits
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: The state and SEIU members will prefund retiree healthcare with the goal of reaching 50 percent cost sharing of the actuarially determined total normal cost for employer and employees by July 1, 2020. The state and employees will each make the following contributions:
- Effective July 1, 2018, 1.2 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.1 percent for a total of 2.3 percent of pensionable compensation.
- Effective July 1, 2020, an additional 1.2 percent for a total of 3.5 percent of pensionable compensation.
- BU 8: The state and BU 8 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.5 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.5 percent for a total of three percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.4 percent for a total of 4.4 percent of pensionable compensation.
- BU 12: Beginning on July 1, 2013, BU 12 members started the process of prefunding their retiree healthcare by contributing 0.5 percent of their base salary. The state and BU 12 members will now both 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, 2020. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.5 percent of pensionable compensation.
- Effective July 1, 2018, an additional one percent for a total of 2.5 percent of pensionable compensation.
- Effective July 1, 2019, an additional one percent for a total of 3.5 percent of pensionable compensation.
- Effective July 1, 2020, an additional 1.1 percent for a total of 4.6 percent of pensionable compensation.
- BU 13: The state and BU 13 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.3 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.3 percent for a total of 2.6 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.3 percent for a total of 3.9 percent of pensionable compensation.
- BU 18: The state and BU 18 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.3 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.3 percent for a total of 2.6 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.4 percent for a total of four percent of pensionable compensation.
- BU 19: Beginning July 1, 2017, the state and BU 19 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, a total of one percent of pensionable compensation.
- Effective July 1, 2018, an additional one percent for a total of two percent of pensionable compensation.
- Effective July 1, 2019, an additional one percent for a total of three percent of pensionable compensation.
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: The state and SEIU members will prefund retiree healthcare with the goal of reaching 50 percent cost sharing of the actuarially determined total normal cost for employer and employees by July 1, 2020. The state and employees will each make the following contributions:
Compensation
- One-time Bonus
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: Effective upon ratification, all eligible employees shall receive a one-time bonus of $2,500.
- General Salary Increase (GSI)
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21:
- Effective July 1, 2017, employees shall receive a four percent GSI,
- Effective July 1, 2018, employees shall receive a four percent GSI,
- Effective July 1, 2019, employees shall receive a three and a half percent GSI.
- BU 12:
- Effective January 1, 2017, employees shall receive a three and a half percent GSI.
- Effective July 1, 2017, employees shall receive a three and a half percent GSI.
- Effective July 1, 2018, employees shall receive a three and a half percent GSI.
- Effective July 1, 2019, employees shall receive a three and a half percent GSI.
- BU 13:
- Effective November 1, 2016, employees shall receive a three percent GSI.
- Effective July 1, 2017, employees shall receive a three percent GSI.
- Effective July 1, 2018, employees shall receive a two percent GSI.
- BU 18:
- Effective July 1, 2016, employees shall receive a three percent GSI.
- Effective July 1, 2017, employees shall receive a three percent GSI.
- Effective July 1, 2018, employees shall receive a three percent GSI.
- BU 19:
- Effective January 1 2017, employees shall receive a three and a half percent GSI.
- Effective July 1, 2017, employees shall receive a three and a half percent GSI.
- Effective July 1, 2018, employees shall receive a two and a half percent GSI.
- Effective July 1, 2019, employees shall receive a two percent GSI
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21:
- Special Salary Adjustments (SSA)
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21: Employees in various classifications will receive SSAs from two percent to 15 percent effective July 1, 2017.
- BU 8: Employees in various classifications will receive SSAs from two percent to 6.5 percent effective, January 1, 2017, July 1, 2017, July 1, 2018, July 1, 2019, and July 1, 2020, as specified.
- BU 12: Employees in various classifications will receive SSAs from one percent to five percent effective January 1, 2017 and/or July 1, 2017, as specified.
- BU 13: Employees in various classifications will receive SSAs of two percent effective November 1, 2016, July 1, 2017, and July 1, 2018.
- BU 18: Employees in the Psychiatric Technician Instructors classification will receive a SSA of five percent effective January 1, 2017, and those in the Senior Psychiatric Technicians and Senior Psychiatric Technician (Safety) classifications will receive SSAs of one percent effective January 1, 2017, July 1, 2017, and July 1, 2018.
- BU 19: Employees in various classifications will receive SSAs from five percent to 10 percent effective January 1, 2017.
Fiscal Effect:
MOU | Fiscal Year 2016-17 Cost (Dollars in millions) | Total Incremental Cost (Dollars in millions) | Total Budgetary Cost (Dollars in millions) | ||||||
Bargaining Unit | Total | General Fund | Other Funds | Total | General Fund | Other Funds | Total | General Fund | Other Fund |
1, 3, 4, 11, 14, 15, 17, 20, 21 | $261.5 | $112.3 | $149.2 | $1,518.3 | $658.8 | $859.5 | $3,955.8 | $1,737.3 | $2,218.5 |
8 | $ 17.0 | $ 11.0 | $ 6.0 | $146.2 | $ 94.9 | $ 51.3 | $ 475.6 | $ 308.5 | $ 167.1 |
12 | $ 18.9 | $ 6.1 | $ 12.8 | $179.8 | $ 57.7 | $122.1 | $580.8 | $186.7 | $394.1 |
13 | $ 3.2 | $ 2.2 | $ 1.0 | $ 17.7 | $ 12.3 | $ 5.4 | $48.5 | $33.6 | $14.9 |
18 | $ 16.5 | $ 15.6 | $ 0.9 | $ 73.3 | $ 69.3 | $ 4.0 | $196.7 | $185.9 | $ 10.8 |
19 | $ 12.6 | $ 10.3 | $ 2.3 | $ 92.2 | $ 75.5 | $ 16.7 | $231.3 | $189.3 | $ 42 |
Total | $329.70 | $157.5 | $172.2 | $2,027.5 | $968.5 | $1,059 | $5,488.7 | $2,641.3 | $2,847.4 |
In addition, CalHR estimates that about $139 million General Fund in 2016-17, and about $155 million General Fund in 2017-18 and thereafter, will be absorbed within departmental resources for costs associated with leave cash out.
Support:
American Federation of State, County and Municipal Employees
CAL FIRE Local 2881
California Labor Federation
California-Nevada Conference of Operating Engineers
Service Employees International Union, Local 1000
Opposed:
None received
-- END --
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Pan, Chair
2017 - 2018 Regular
Bill No: SB 28 Hearing Date: 2/6/17
Author: | Pan | ||
Version: | 01/30/17 As amended | ||
Urgency: | Yes | Fiscal: | Yes |
Consultant: | Glenn A. Miles | ||
Subject: State public employment: memoranda of understanding: approval.
SOURCE: American Federation of State, County and Municipal Employees-
Health and Social Service Professionals
California Association of Psychiatric Technicians
CAL FIRE Local 2881
California Department of Human Resources
International Union of Operating Engineers
Service Employees International Union, Local 1000
DIGEST: SB 28 makes necessary statutory changes to ratify and implement six memoranda of understanding (MOUs) between 14 bargaining units (BUs), respectively, and the State, represented by the California Department of Human Resources (CalHR). The MOUs cover approximately 126,000 state employees represented by five separate exclusive employee representatives, as follows:
Service Employees International Union, Local 1000 (SEIU 1000)
BU 01 (Administrative, Financial, and Staff Services)
BU 03 (Professional Educators and Librarians)
BU 04 (Office and Allied)
BU 11 (Engineering and Scientific Technicians)
BU 14 (Printing Trades)
BU 15 (Allied Services)
BU 17 (Registered Nurses)
BU 20 (Medical and Social Services)
BU 21 (Education Consultants and Library Employees)
CAL FIRE Local 2881
BU 08 (California Department of Forestry and Fire Protection Firefighters)
International Union of Operating Engineers (IUOE)
BU 12 (Craft and Maintenance)
BU 13 (Stationary Engineers)
California Association of Psychiatric Technicians (CAPT)
BU 18 (Psychiatric Technician)
American Federation of State, County and Municipal Employees-Health and Social Service Professionals (AFSCME)
BU 19 (Health and Social Services/Professional)
This is an URGENCY BILL.
ANALYSIS:
Existing law:
- Requires, under the State Employee-Employer Relations Act (the Ralph C. Dills Act), that the State, represented by CalHR, collectively bargain with exclusive employee representatives over all aspects related to wages and working conditions, and that agreements be formalized in MOUs.
- Requires the Office of the Legislative Analyst (LAO) to analyze state MOUs and to report on its findings to the Legislature within 10 days of receiving the MOU from CalHR.
- 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.
- 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.
- Provides that retirees who were covered in certain bargaining units 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).
- Requires Medicare-eligible retirees to 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 5 year or 10 year vesting for full coverage of the 100/90 formula.
- Provides that the employer contribution for active state employee health care shall be determined through collective bargaining. In its MOU effective 2015 to 2018, BU 6 California Correctional Peace Officers Association (CCPOA) agreed to a flat dollar amount, as specified.
This bill:
- Approves the MOUs between the State and the following state bargaining units and would cover the Full Time Equivalent (FTE) positions (approximately) for the term duration of the agreements as cited below:
Bargaining Unit FTE Covered Term
BU 01 (Admin., Fin., Staff Services) 51,476 3.5 years (7/2/16 - 1/1/20)
BU 03 (Prof. Ed. and Librarians) 1,670 ″
BU 04 (Office and Allied) 25,257 ″
BU 11 (Eng. and Sci. Techs.) 2,557 ″
BU 14 (Printing Trades) 414 ″
BU 15 (Allied Services) 4,589 ″
BU 17 (Registered Nurses) 5,345 ″
BU 20 (Med. and Soc. Serv.) 4,709 ″
BU 21 (Ed Conslt. and Lib) 591 ″
Total SEIU Local 1000 represented FTEs 96,608 3.5 years (7/2/16 - 1/1/20)
BU 08 (Forestry and Fire Protection) 5,881 4.5 years (1/1/17 - 7/1/21)
BU 12 (Craft and Maintenance) 10,778 5 years (7/1/15 - 7/1/20)
BU 13 (Stationary Engineers) 978 3 years (7/2/16 - 6/30/19)
BU 18 (Psych. Techs.) 6,283 3 years (7/1/16 - 7/1/19)
BU 19 (Hlth. and Soc. Serv./Profs.) 5,238 4 years (7/1/16 - 7/1/20)
Total FTEs 125,766
- Provides that expenditure of funds shall not take effect unless funds are specifically appropriated by the Legislature; authorizes the state employer or the affected employee organization to reopen negotiations on all or part of the memorandum of understanding if funds for these provisions are not specifically appropriated; and continuously appropriates funds for the 2017, 2018, 2019, and 2020 fiscal years if the respective budget acts are not enacted by July, 1, of the respective fiscal years
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 8, 12, 13, 18, and 19 will receive an employer retiree health contribution based on the 80/80 formula.
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 8, 13, 18, and 19 shall be required to meet an extended vesting schedule for retiree health benefits. Affected employees will be eligible for 50 percent of the employer contribution toward health benefits upon completion of 15 years of state service, increasing 5 percent for each additional year of service, until the employee is eligible to receive 100 percent of the employer contribution upon completion of 25 years of state service.
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 8, 12, 13, 18, and 19 shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Provides that:
- The state and employees in State Bargaining Units 8, 13, 18, or 19 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.
- The state and employees in State Bargaining Units 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21 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, 2020.
- Sets out the timing and amount of various contribution rates, as specified (see below), by affected bargaining units toward the goal of prefunding retiree health care.
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 8, 12, 13, 18, and 19 shall be required to meet an extended vesting schedule for retiree dental benefits. Affected employees will be eligible for 50 percent of the employer contribution toward health benefits upon completion of 15 years of state service, increasing 5 percent for each additional year of service, until the employee is eligible to receive 100 percent of the employer contribution upon completion of 25 years of state service.
- Contains an urgency statute and provides that the provisions of this act be applicable as soon as possible in the 2016–17 fiscal year to facilitate the orderly administration of state government.
Background
1) General comments:
The majority of state employees in bargaining units covered by this bill are currently working under MOUs that were ratified in 2013 and that expired in July 2016. Additionally, the bill covers over 10,000 employees in bargaining unit 12 whose membership did not ratify a previously negotiated agreement in 2015-16 and who have been working under the terms of an agreement that expired in 2015. The bill also covers approximately 5,881 employees who are working under a contract that expires July 2017.
The MOUs provide for general salary increases (GSIs) ranging from 2 to 3.5 percent annually over the course of the contracts and generally provide a number of Special Salary Adjustments (SSAs) based on position classifications, intended to address retention and recruitment.
The MOUs also require state employees in the covered bargaining units to contribute to pre-funding post-retirement healthcare benefits.
Most MOUs also require new employees hired after January 1, 2017, to work longer before being eligible for post-retirement health and dental coverage; to be subject to the 80/80 formula for calculating the base post-retirement health premium benefit; and prohibit new employees from receiving in retirement a reimbursement of their Medicare Part B premiums.
- General Salary Increases (GSIs) and Employee Post-Retirement Health Contributions:
BU | General Salary Increases | Employee Post- Retirement Health Contributions | ||||||||||||
JUL ‘15 | JUL ‘16 | JUL ‘17 | JUL ‘18 | JUL ‘19 | JUL ‘20 | JUL ‘21 | JUL ‘15 | JUL ‘16 | JUL ‘17 | JUL ‘18 | JUL ‘19 | JUL ‘20 | JUL ‘21 | |
1, 3, 4, 11, 14, 15, 17, 20, 21 | 4% $2500 Bonus Upon Bill Sign | 4% | 3.5% | 1.2% | 1.1% | (1.2%) | ||||||||
08 | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 1.5% | 1.5% | 1.4% | ||||||
12 | 3.5%* 3.5% 7.0 *Jan 1 | 3.5% | 3.5% | 1.5% | 1.0% | 1.0% | 1.1% | |||||||
13 | 3%* *Nov 1 | 3% | 2% | 1.3% | 1.3% | (1.3%) | ||||||||
18 | 3% | 3% | 3% | 1.3% | 1.3% | 1.4% | ||||||||
19 | 3.5%* 3.5% 7.0 *Jan 1 | 2.5% | 2% | 1.0% | 1.0% | 1.0% | ||||||||
* Implementation date other than July 1.
( %) Contribution rate change set for date beyond the term of the MOU.
NB: Each annual contribution rate change is added to the previous year to produce a total cumulative contribution rate.
- Health Benefits
- Employer Contribution for Active State Employees
- BU 3: The state’s monthly benefit contribution for Bargaining Unit (Unit) 3 employees 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. Effective the first day of the pay period following ratification, the flat dollar amounts shall be adjusted as appropriate pursuant to the formulas on January 1, 2017, January 1, 2018, January 1, 2019, and January 1, 2020.
- BU 12: 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, January 1, 2018, January 1, 2019, and January 1, 2020.
- BU 13: The state’s monthly 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 adjusted as appropriate pursuant to the formulas on the first day of the pay period following ratification, January 1, 2018, and January 1, 2019.
- BU 18: Effective upon ratification, the state’s monthly consolidated 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, January 1, 2018, and January 1, 2019.
- Employer Contribution for Future Retirees
- Employees in the affected bargaining units 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
- SEIU: The state and SEIU members will prefund retiree healthcare with the goal of reaching 50 percent cost sharing of the actuarially determined total normal cost for employer and employees by July 1, 2020. The state and employees will each make the following contributions:
- Effective July 1, 2018, 1.2 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.1 percent for a total of 2.3 percent of pensionable compensation.
- Effective July 1, 2020, an additional 1.2 percent for a total of 3.5 percent of pensionable compensation.
- BU 8: The state and BU 8 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.5 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.5 percent for a total of 3.0 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.4 percent for a total of 4.4 percent of pensionable compensation.
- BU 12: Beginning on July 1, 2013, BU 12 members started the process of prefunding their retiree healthcare by contributing 0.5 percent of their base salary. The state and BU 12 members will now both 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, 2020. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.5 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.0 percent for a total of 2.5 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.0 percent for a total of 3.5 percent of pensionable compensation.
- Effective July 1, 2020, an additional 1.1 percent for a total of 4.6 percent of pensionable compensation.
- BU 13: The state and BU 13 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.3 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.3 percent for a total of 2.6 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.3 percent for a total of 3.9 percent of pensionable compensation.
- BU 18: The state and BU 18 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, 1.3 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.3 percent for a total of 2.6 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.4 percent for a total of 4.0 percent of pensionable compensation.
- BU 19: Beginning July 1, 2017, the state and BU 19 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, 2019. The state and employees will each make the following contributions:
- Effective July 1, 2017, a total of 1.0 percent of pensionable compensation.
- Effective July 1, 2018, an additional 1.0 percent for a total of 2.0 percent of pensionable compensation.
- Effective July 1, 2019, an additional 1.0 percent for a total of 3.0 percent of pensionable compensation.
- SEIU: The state and SEIU members will prefund retiree healthcare with the goal of reaching 50 percent cost sharing of the actuarially determined total normal cost for employer and employees by July 1, 2020. The state and employees will each make the following contributions:
- Post-Employment Health and Dental Vesting Schedule
- All employees in the affected bargaining units first hired by the state 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 5 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 in the affected bargaining units first hired on or after January 1, 2017, will no longer be eligible to use the employer contribution for a retiree health benefit plan for Medicare Part B premiums.
- Compensation
- One-time Bonus
- SEIU: Effective upon ratification, all eligible SEIU employees shall receive a one-time bonus of $2,500.
- General Salary Increase (GSI)
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21 (SEIU):
- Effective July 1, 2017, SEIU employees shall receive a four percent (4%) GSI,
- Effective July 1, 2018, SEIU employees shall receive a four percent (4%) GSI,
- Effective July 1, 2019, SEIU employees shall receive a three and a half percent (3.5%) GSI.
- BU 8: No General Salary Increase.
- BU 12:
- Effective January 1, 2017, Unit 12 employees shall receive a three and a half percent (3.5%) GSI.
- Effective July 1, 2017, Unit 12 employees shall receive a three and a half percent (3.5%) GSI.
- Effective July 1, 2018, Unit 12 employees shall receive a three and a half percent (3.5%) GSI.
- Effective July 1, 2019, Unit 12 employees shall receive a three and a half percent (3.5%) GSI.
- BU 13:
- Effective November 1, 2016, Unit 13 employees shall receive a 3 percent (3%) GSI.
- Effective July 1, 2017, Unit 13 employees shall receive a 3 percent (3%) GSI.
- Effective July 1, 2018, Unit 13 employees shall receive a 2 percent (2%) GSI.
- BU 18:
- Effective July 1, 2016, Unit 18 employees shall receive a three percent (3%) GSI.
- Effective July 1, 2017, Unit 18 employees shall receive a three percent (3%) GSI.
- Effective July 1, 2018, Unit 18 employees shall receive a three percent (3%) GSI.
- BU 19:
- Effective January 1 2017, all Unit 19 represented classifications shall receive a three and a half percent (3.5%) GSI.
- Effective July 1, 2017, all Unit 19 represented classifications shall receive a three and a half percent (3.5%) GSI.
- Effective July 1, 2018, all Unit 19 represented classifications shall receive a two and a half percent (2.5%) GSI.
- Effective July 1, 2019, all Unit 19 represented classifications shall receive a two percent (2%) GSI.
- BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21 (SEIU):
- Special Salary Adjustments
- BU 8:
- Effective January 1, 2017, employees in the Fire Fighter II (Paramedic) classification will receive an SSA of 5.1% and employees in the Fire Captain (Paramedic) classification will receive an SSA of 0.41%.
- Effective January 1, 2017, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II and Fire Fighter II/Paramedic (PM) 4.50%
- Fire Apparatus Engineer and Fire Apparatus Engineer/PM 6.50%
- Fire Captain, Fire Captain/PM, and Heavy Fire Equipment Operator 5.30%
- Battalion Chief 4.54%
- Forestry Fire Pilot 2.50%
- Effective July 1, 2017, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II and Fire Fighter II/PM 4.20%
- Fire Apparatus Engineer and Fire Apparatus Engineer/PM 6.00%
- Fire Captain, Fire Captain/PM, and Heavy Fire Equipment Operator 5.00%
- Forestry Fire Pilot 2.50%
- Effective July 1, 2018, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II and Fire Fighter II/PM 3.50%
- Fire Apparatus Engineer and Fire Apparatus Engineer/PM 3.00%
- Fire Captain, Fire Captain/PM, Forestry Fire Pilot, and Heavy Fire Equipment Operator 2.50%
- Effective July 1, 2019, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II, Fire Fighter II/PM, Fire Apparatus Engineer, Fire Apparatus Engineer/PM, Fire Captain, Fire Captain/PM, Forestry Fire Pilot, and Heavy Fire Equipment Operator 2.75%
- Battalion Chief 2.00%
- Effective July 1, 2020, employees in these Unit 8 fire protection classifications will receive the following SSA:
- Fire Fighter II, Fire Fighter II/PM, Fire Apparatus Engineer, Fire Apparatus Engineer/PM, Fire Captain, Fire Captain/PM, Forestry Fire Pilot, and Heavy Fire Equipment Operator 2.50%
- Battalion Chief 2.00%
- Effective January 1, 2017, Employees in specialty classifications will receive an SSA of 2.0%. Additionally these employees will receive an SSA of 2.0% effective July 1, 2017, July 1, 2018, July 1, 2019, and July 1, 2020.
- Other bargaining units (Full details can be found at the link listed under AGREEMENTS below):
- SEIU: Employees in various classifications will receive SSAs from 2% - 15% effective July 1, 2017.
- BU 12: Employees in various classifications will receive SSAs from 1% - 5% effective January 1, 2017 and/or July 1, 2017, as specified.
- BU 13: Employees in various classifications will receive SSAs of 2% effective November 1, 2016, July 1, 2017, and July 1, 2018.
- BU 18: Employees in the Psychiatric Technician Instructors classification will receive a SSA of 5% effective January 1, 2017, and those in the Senior Psychiatric Technicians and Senior Psychiatric Technician (Safety) classifications will receive SSAs of 1% effective January 1, 2017, July 1, 2017, and July 1, 2018.
- BU 19: Employees in various classifications will receive SSAs from 5% - 10% effective January 1, 2017.
- BU 8:
Related/Prior Legislation
SB 48 (Senate Budget and Fiscal Review Committee, 2017) would make necessary statutory changes to future retiree health and dental benefits for new employees in bargaining units 1, 3, 4, 11, 14, 15, 17, 20 and 21 to address retiree health benefit unfunded liability.
AB 1627 (Assembly Budget Committee, Chapter 32, Statutes of 2016) ratified the MOU for BU 7 employees.
AB 1630 (Assembly Budget Committee, Chapter 323, Statutes of 2016) ratified the MOU for BU 2 employees.
SB 95 (Senate Budget and Fiscal Review Committee, Chapter 12, Statutes of 2016) ratified the MOU for BU 6 employees.
SB 848 (Senate Budget and Fiscal Review Committee, Chapter 35, Statutes of 2016) ratified the MOU for BU 12 employees. BU 12 members rejected the contract. The new agreement between the Administration and BU 12 is reflected in SB 28.
AB 478 (Gomez, Chapter 391, Statutes of 2013) ratified several MOUs for employees in BUs 6, 7, 9, 12, 16, 18, and 19.
AB 1337 (Assembly Public Employees, Retirement and Social Security Committee, Chapter 63, Statutes of 2013) ratified the MOU for SEIU represented employees in BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
According to CalHR fiscal costs are:
(in millions)
MOU | Fiscal Year 2016-17 Cost | Total Incremental Cost | Total Budgetary Cost | ||||||
Bargaining Unit | Total | General Fund | Other Funds | Total | General Fund | Other Funds | Total | General Fund | Other Fund |
1, 3, 4, 11, 14, 15, 17, 20, 21 | $261.5 | $112.3 | $149.2 | $1,518.3 | $658.8 | $859.5 | $3,955.8 | $1,737.3 | $2,218.5 |
08 | $ 17.0 | $ 11.0 | $ 6.0 | $146.2 | $ 94.9 | $ 51.3 | $ 475.6 | $ 308.5 | $ 167.1 |
12 | $ 18.9 | $ 6.1 | $ 12.8 | $179.8 | $ 57.7 | $122.1 | $580.8 | $186.7 | $394.1 |
13 | $ 3.2 | $ 2.2 | $ 1.0 | $ 17.7 | $ 12.3 | $ 5.4 | $48.5 | $33.6 | $14.9 |
18 | $ 16.5 | $ 15.6 | $ 0.9 | $ 73.3 | $ 69.3 | $ 4.0 | $196.7 | $185.9 | $ 10.8 |
19 | $ 12.6 | $ 10.3 | $ 2.3 | $ 92.2 | $ 75.5 | $ 16.7 | $231.3 | $189.3 | $ 42 |
Total | $329.70 | $157.5 | $172.2 | $2027.5 | $968.5 | $1,059 | $5,488.7 | $2,641.3 | $2,847.4 |
AGREEMENTS:
The complete tentative agreements between the State and the employee representatives of the affected BUs can be viewed at:
http://www.calhr.ca.gov/state-hr-professionals/Pages/bargaining-contracts.aspx
SUPPORT:
American Federation of State, County and Municipal Employees-
Health and Social Service Professionals (co-source)
California Association of Psychiatric Technicians (co-source)
CAL FIRE Local 2881 (co-source)
California Department of Human Resources (co-source)
International Union of Operating Engineers (co-source)
Service Employees International Union, Local 1000 (co-source)
American Federation of State, County and Municipal Employees, Local 2620
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to the California Department of Human Resources, SB 28 represents part of the overall agreement between the State and its represented employees regarding state employee wages and benefits and reflects the MOUs signed between the State and the respective bargaining units.
SEIU Local 1000 notes that this bill ratifies a tentative agreement that “reflects a hard-fought victory that will have a positive impact on the lives of all of our members.”
CAPT states that “after many months of vigorous negotiation we have reached a fair and equitable agreement with the administration. The general salary increases are in line with that of other collective bargaining units reached in 2016.”
According to IUOE’s representative, “Unit 12 members have worked without a contract since July 1, 2015 and Unit 13 members have worked without a contract since July 1, 2016. Although the MOUs don’t offer compensation on parity with the private sector, I am encouraged the contracts are moving forward to give our members a semblance of financial security.”
Discussed in Hearing
6MIN
Assembly Floor
1MIN
Assembly Standing Committee on Budget
15MIN
Senate Floor
8MIN
Senate Standing Committee on Budget and Fiscal Review
29MIN
Senate Standing Committee on Public Employment and Retirement
Bill Author
Bill Co-Author(s):