SB 48: State public employee benefits.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-03-15
(1)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 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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.
(2)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, the State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21.
(3)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, and are represented by, or related to, State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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.
(4)This bill would incorporate additional changes to Sections 22871.3, 22874.3, 22879, and 22958.1 of the Government Code proposed by SB 28 to be operative only if this bill and SB 28 are enacted and this bill is enacted last.
(5)This bill would appropriate $20,000 from the General Fund for expenditure in the 201617 fiscal year to the Controller for administrative costs related to these provisions.
(6)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
(1)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 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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.
(2)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, the State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21.
(3)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, and are represented by, or related to, State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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.
(4)This bill would incorporate additional changes to Sections 22871.3, 22874.3, 22879, and 22958.1 of the Government Code proposed by SB 28 to be operative only if this bill and SB 28 are enacted and this bill is enacted last.
(5)This bill would appropriate $20,000 from the General Fund for expenditure in the 201617 fiscal year to the Controller for administrative costs related to these provisions.
(6)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
(1)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 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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.
(2)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, the State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21.
(3)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, and are represented by, or related to, State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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.
(4)This bill would incorporate additional changes to Sections 22871.3, 22874.3, 22879, and 22958.1 of the Government Code proposed by SB 28 to be operative only if this bill and SB 28 are enacted and this bill is enacted last.
(5)This bill would appropriate $20,000 from the General Fund for expenditure in 201617 to the Controller for administrative costs related to these provisions.
(6)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.
(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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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. 1.5.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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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. 2.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 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 who later become represented by State Bargaining Unit 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21.
(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. 2.5.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 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21, who later become represented by State Bargaining Unit 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21.
(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. 3.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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(4)A state employee related to State Bargaining Unit 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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. 3.5.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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(4)A state employee related to State Bargaining Unit 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21. 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. 4.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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(2)A state employee related to State Bargaining Unit 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21, who later become represented by State Bargaining Unit 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(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. 4.5.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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(2)A state employee related to State Bargaining Unit 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21, who later become represented by State Bargaining Unit 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(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. 5.Section 1.5 of this bill incorporates amendments to Section 22871.3 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22871.3 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22871.3 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.
SEC. 6.Section 2.5 of this bill incorporates amendments to Section 22874.3 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22874.3 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22874.3 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 2.5 of this bill shall become operative, and Section 2 of this bill shall not become operative.
SEC. 7.Section 3.5 of this bill incorporates amendments to Section 22879 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22879 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22879 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 3.5 of this bill shall become operative, and Section 3 of this bill shall not become operative.
SEC. 8.Section 4.5 of this bill incorporates amendments to Section 22958.1 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22958.1 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22958.1 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 4.5 of this bill shall become operative, and Section 4 of this bill shall not become operative.
SEC. 9.The sum of twenty thousand ($20,000) dollars is hereby appropriated from the General Fund for expenditure in 201617 fiscal year to the Controller for administrative costs relating to this act.
SEC. 10.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.
(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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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. 1.5.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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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. 2.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 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 who later become represented by State Bargaining Unit 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21.
(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. 2.5.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 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21, who later become represented by State Bargaining Unit 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21.
(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. 3.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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(4)A state employee related to State Bargaining Unit 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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. 3.5.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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(4)A state employee related to State Bargaining Unit 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21. 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. 4.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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(2)A state employee related to State Bargaining Unit 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21, who later become represented by State Bargaining Unit 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(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. 4.5.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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(2)A state employee related to State Bargaining Unit 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21, who later become represented by State Bargaining Unit 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(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. 5.Section 1.5 of this bill incorporates amendments to Section 22871.3 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22871.3 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22871.3 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.
SEC. 6.Section 2.5 of this bill incorporates amendments to Section 22874.3 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22874.3 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22874.3 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 2.5 of this bill shall become operative, and Section 2 of this bill shall not become operative.
SEC. 7.Section 3.5 of this bill incorporates amendments to Section 22879 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22879 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22879 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 3.5 of this bill shall become operative, and Section 3 of this bill shall not become operative.
SEC. 8.Section 4.5 of this bill incorporates amendments to Section 22958.1 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22958.1 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22958.1 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 4.5 of this bill shall become operative, and Section 4 of this bill shall not become operative.
SEC. 9.The sum of twenty thousand ($20,000) dollars is hereby appropriated from the General Fund for expenditure in 201617 fiscal year to the Controller for administrative costs relating to this act.
SEC. 10.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.
(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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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. 1.5.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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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. 2.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 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 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, 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 who later become represented by State Bargaining Unit 2, 6, or 7. 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21.
(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. 2.5.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 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21 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, 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21, who later become represented by State Bargaining Unit 2, 6, or 7. 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21.
(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. 3.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. 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(4)A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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. 3.5.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. 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(4)A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21. 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. 4.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. 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(2)A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 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, 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21, who later become represented by State Bargaining Unit 2, 6, 7, or 12. 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(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. 4.5.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. 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(2)A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 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, 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21, who later become represented by State Bargaining Unit 2, 6, 7, or 12. 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(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. 5.Section 1.5 of this bill incorporates amendments to Section 22871.3 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22871.3 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22871.3 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.
SEC. 6.Section 2.5 of this bill incorporates amendments to Section 22874.3 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22874.3 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22874.3 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 2.5 of this bill shall become operative, and Section 2 of this bill shall not become operative.
SEC. 7.Section 3.5 of this bill incorporates amendments to Section 22879 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22879 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22879 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 3.5 of this bill shall become operative, and Section 3 of this bill shall not become operative.
SEC. 8.Section 4.5 of this bill incorporates amendments to Section 22958.1 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22958.1 of the Government Code, and (3) this bill is enacted after SB 28, in which case Section 22958.1 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 4.5 of this bill shall become operative, and Section 4 of this bill shall not become operative.
SEC. 9.The sum of twenty thousand ($20,000) dollars is hereby appropriated from the General Fund for expenditure in 2016-17 fiscal year to the Controller for administrative costs relating to this act.
SEC. 10.This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.
|
Date
|
Status
|
|---|---|
| Mar 15, 2017 | Chaptered by Secretary of State. Chapter 3, 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 70. Noes 4. Page 564.) Ordered to the Senate. |
| Mar 6, 2017 | Read second time. Ordered to third reading. |
| Mar 2, 2017 | From committee: Do pass. (Ayes 24. Noes 3.) (March 2). |
| Feb 23, 2017 | Referred to Com. on BUDGET. |
| Feb 17, 2017 | In Assembly. Read first time. Held at Desk. |
| Feb 17, 2017 | Read third time. Passed. (Ayes 27. Noes 7. Page 219.) Ordered to the Assembly. |
| Feb 13, 2017 | Read second time. Ordered to third reading. |
| Feb 9, 2017 | From committee: Do pass. (Ayes 12. Noes 4. Page 172.) (February 9). |
| Feb 8, 2017 | From committee: Do pass and re-refer to Com. on B. & F.R. (Ayes 4. Noes 1. 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 2, 2017 | Re-referred to Coms. on P.E. & R. and B. & F.R. |
| Feb 1, 2017 | Set for hearing February 6 in P.E. & R. pending receipt. |
| Jan 31, 2017 | Withdrawn from committee. |
| Jan 30, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.R. |
| Jan 12, 2017 | Referred to Com. on B. & F.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 48 B. & F. R. 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 SB48 Committee On B. & F.R. (Mitchell) | 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.
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Organization
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Position
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Date
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|---|---|---|
| California Department of Human Resources | ** Support | Feb 2, 2017 |
SENATE THIRD READING
STR Bill Id:SB 48
Author:(Committee on Budget and Fiscal Review)
As Amended Ver:January 30, 2017
Majority vote. Budget Bill Appropriation Takes Effect Immediately
SENATE VOTE: 27-7
Committee | Votes | Ayes | Noes |
Budget | 24-3 | Ting, Obernolte, Arambula, Bloom, Caballero, Chávez, Chiu, Choi, Cooper, Fong, Cristina Garcia, Irwin, Jones-Sawyer, Lackey, Limón, Mathis, McCarty, Medina, Mullin, O'Donnell, Rubio, Mark Stone, Weber, Wood | Harper, Melendez, Voepel |
SUMMARY: Makes statutory and technical changes to implement the Budget Act of 2016 related to future retiree health and dental benefits for new employees in Bargaining Units (BUs) 1 (administrative, financial and staff services), 3 (professional educators and librarians), 4 (office and allied), 11 (engineering and scientific technicians), 14 (printing trades), 15 (allied services), 17 (registered nurses), 20 (medical and social services), and 21 (education consultants and library employees). Specifically, this bill:
- Provides that all employees first hired by the state on or after January, 1, 2017, in BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21, shall 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.
- Provides that all employees first hired by the state on or after January, 1, 2017, in BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21, shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Provides that all employees first hired by the state on or after January, 1, 2017, in BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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.
- Contains double-jointing provisions necessary to avoid chaptering out identical statutory provisions being amended by SB 28 (Pan) of the current legislative session.
- Contains a General Fund appropriation of $20,000 to the Controller for administrative costs related to this act.
- States that the bill provides for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, and has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
EXISTING LAW:
- 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).
FISCAL EFFECT: Appropriates $20,000 to the State Controller for administrative costs related to the implementation of this bill.
COMMENTS: According to CalHR and the Department of Finance, this bill is part of the Administration's overall strategy through the collective bargaining process to address the state's $74 billion unfunded liability for retiree health care benefits and are consistent with identical changes made to other state employees' health and dental benefits.
Analysis Prepared by: Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0000023
Date of Hearing: March 2, 2017
ASSEMBLY COMMITTEE ON BUDGET
Phil Ting, Chair
SBPCA Bill Id:SB 48
Author:(Committee on Budget and Fiscal Review) – As Amended Ver:January 30, 2017
SENATE VOTE: 27-7
SUBJECT: State public employee benefits
SUMMARY: Makes statutory and technical changes to implement the Budget Act of 2016 related to future retiree health and dental benefits for new employees in Bargaining Units (BUs) 1 (administrative, financial and staff services), 3 (professional educators and librarians), 4 (office and allied), 11 (engineering and scientific technicians), 14 (printing trades), 15 (allied services), 17 (registered nurses), 20 (medical and social services), and 21 (education consultants and library employees). Specifically, this bill:
- Provides that all employees first hired by the state on or after January, 1, 2017, in BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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% 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.
- Provides that all employees first hired by the state on or after January, 1, 2017, in BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21, shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Provides that all employees first hired by the state on or after January, 1, 2017, in BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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% 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.
- Contains double-jointing provisions necessary to avoid chaptering out identical statutory provisions being amended by SB 28.
- Contains a General Fund appropriation of $20,000 to the Controller for administrative costs related to this act.
- States that the bill provides for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, and has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
EXISTING LAW:
- 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).
FISCAL EFFECT: Appropriates $20,000 to the State Controller for administrative costs related to the implementation of this bill.
COMMENTS: According to CalHR and the Department of Finance, this bill is part of the Administration's overall strategy through the collective bargaining process to address the state's $74 billion unfunded liability for retiree health care benefits and are consistent with identical changes made to other state employees' health and dental benefits.
REGISTERED SUPPORT / 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 48
:
SENATE BUDGET AND FISCAL REVIEW COMMITTEE: 12-4, 2/9/17
AYES: Mitchell, Beall, Jackson, McGuire, Mendoza, Monning, Pan, Portantino, Roth, Skinner, Wieckowski, Wilk
NOES: Nielsen, Anderson, Moorlach, Stone
NO VOTE RECORDED: Glazer
DIGEST: This bill makes statutory changes to future retiree health and dental benefits of new employees in Bargaining Units (BU) 1 (administrative, financial, and staff services), 3 (professional educators and librarians), 4 (office and allied), 11 (engineering and scientific technicians), 14 (printing trades), 15 (allied services), 17 (registered nurses), 20 (medical and social services), and 21 (education consultants and library employees), who are exclusively represented by Service Employees International Union (SEIU) Local 1000. The changes are necessary to implement the Administration’s policy of addressing the unfunded liability associated with state employee retiree health and dental benefits and are consistent with identical changes made to other state employees’ health and dental benefits.
This bill:
- Makes statutory changes that impact other post-employment benefits for employees in BU 1, 3, 4, 11, 14, 15, 17, 20, and 21 hired on or after January 1, 2017.
- Provides that all employees first hired by the state on or after January, 1, 2017, in BU 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 BU 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 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.
- Provides that all employees first hired by the state on or after January, 1, 2017, in BU 1, 3, 4, 11, 14, 15, 17, 20, and 21, shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Provides that all employees first hired by the state on or after January, 1, 2017, in BU 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 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.
- Contains double-jointing provisions necessary to avoid chaptering out identical statutory provisions being amended by SB 28 (Pan).
- States that the bill provides for appropriations related to the budget bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, and has been identified as related to the budget in the budget bill, and shall take effect immediately.
- Provides $20,000 General Fund to the State Controller for administrative costs related to this act.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
None received
OPPOSITION: (Verified 2/13/17)
None received
2/16/17 15:06:50
**** END ****
SENATE COMMITTEE ON
Senator Holly Mitchell, Chair
2017 - 2018 Regular
Bill No: Hearing Date: February 9, 2017
Author: | Committee on Budget and Fiscal Review | ||
Version: | As amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject:
Summary:
This bill makes statutory changes to future retiree health and dental benefits of new employees in Bargaining Units 1 (administrative, financial, and staff services), 3 (professional educators and librarians), 4 (office and allied), 11 (engineering and scientific technicians), 14 (printing trades), 15 (allied services), 17 (registered nurses), 20 (medical and social services), and 21 (education consultants and library employees), who are exclusively represented by Service Employees International Union (SEIU) Local 1000. The changes are necessary to implement the Administration’s policy of addressing the unfunded liability associated with state employee retiree health and dental benefits and are consistent with identical changes made to other state employees’ health and dental benefits.
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 Public Employees' Retirement System (CalPERS), which administers health and retirement benefits for state employees.
- Establishes the California Department of Human Resources (CalHR) which is tasked with representing the Administration in labor relations with state employees and is also responsible for administering the dental health benefits program.
- 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 most state employees first hired after 2000, depending on their bargaining unit, are subject to a vesting scheduled of 10 years to receive 50percent of the employer contribution for retiree dental benefits with an additional five percent per year of service until, after 20 years, they are vested to receive 100percent of the employer contribution.
- Provides that state employees first hired after January 1, 2017, depending on their bargaining unit, are subject to a vesting schedule of 15 years to receive 50percent of the employer contribution for retiree dental benefits with an additional five percent per year of service until, after 25 years, they are vested to receive 100 percent of the employer contribution.
Proposed Law: SB 48 would make statutory changes that impact other post-employment benefits for employees in Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 hired on or after January 1, 2017.
- Provides that all employees first hired by the state on or after January, 1, 2017, in BU 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 BU 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 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.
- Provides that all employees first hired by the state on or after January, 1, 2017, in BU 1, 3, 4, 11, 14, 15, 17, 20, and 21, shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 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.
- Contains double-jointing provisions necessary to avoid chaptering out identical statutory provisions being amended by Senate Bill 28 (Pan).
- States that the bill provides for appropriations related to the budget bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, and has been identified as related to the budget in the budget bill, and shall take effect immediately.
Fiscal Effect:
- This bill provides $20,000 General Fund to the State Controller for administrative costs related to this act.
Support:
None on file.
Opposed:
None on file.
Comments:
According to CalHR and the Department of Finance (DOF), this bill is part of the Administration’s overall strategy through the collective bargaining process to address the state’s $74 billion unfunded liability for retiree health benefits.
-- END --
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Richard Pan, Chair
2017 - 2018 Regular
Bill No: SB 48 Hearing Date: 2/6/17
Author: | Committee on Budget and Fiscal Review | ||
Version: | 1/30/17 As amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Glenn A. Miles | ||
Subject: State public employee benefits: Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21.
SOURCE: California Department of Human Resources
DIGEST: This bill makes statutory changes to future retiree health and dental benefits of new employees in Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21. The changes are necessary to implement the Administration’s policy of addressing the unfunded liability associated with state employee retiree health and dental benefits and are consistent with identical changes made to other state employees’ health and dental benefits.
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.
- Establishes the California Public Employees' Retirement System (CalPERS), which administers health and retirement benefits for state employees.
- Establishes the California Department of Human Resources (CalHR) which is tasked with representing the Administration in labor relations with state employees and is also responsible for administering the dental health benefits program.
- 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 most state employees first hired after 2000, depending on their bargaining unit, are subject to a vesting scheduled of 10 years to receive 50% of the employer contribution for retire dental benefits with an additional 5% per year of service until, after 20 years, they are vested to receive 100% of the employer contribution.
- Provides that state employees first hired after January 1, 2017, depending on their bargaining unit, are subject to a vesting schedule of 15 years to receive 50% of the employer contribution for retire dental benefits with an additional 5% per year of service until, after 25 years, they are vested to receive 100% of the employer contribution.
This bill:
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 1, 3, 4, 11, 14, 15, 17, 20, and 21, shall not be eligible to use the retiree health benefit employer contribution for reimbursement of Medicare Part B premiums.
- Provides that all employees first hired by the state on or after January, 1, 2017, in Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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 double-jointing provisions necessary to avoid chaptering out identical statutory provisions being amended by SB 28.
- Contains a General Fund appropriation of $20,000.00 to the Controller for administrative costs associated related to this act.
- States that the bill provides for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, and has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
Background
- Comments
According to CalHR and the Department of Finance (DOF), this bill is part of the Administration’s overall strategy through the collective bargaining process to address the state’s $74 billion unfunded liability for retiree health benefits. “The strategy for addressing the liability includes equal cost-sharing between the employee and employer to prefund retiree health benefits, and reducing the employer subsidy for retiree health benefits. Agreements reached in the past year have all included these retiree health provisions.”
The bill provides statutory changes specific to future retiree health benefits for new employees, as of January 1, 2017, in BUs 1, 3, 4, 11, 14, 15, 17, 20, and 21. Committee staff has received no opposition to including these changes in this bill. These statutory changes are consistent with proposed changes affecting other bargaining units. Identical provisions for new employees of BUs 8, 12, 13, and 18 are provided in SB 28.
Related/Prior Legislation
SB 28 (Pan, 2017) would ratify the MOUs for Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, represented by Service Employees International Union, Local 1000, as well as Bargaining Units 8, 12, 13, 18, and 19, represented respectively by CAL FIRE Local 2881, International Union of Operating Engineers, California Association of Psychiatric Technicians, and American Federation of State, County and Municipal Employees.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
SUPPORT:
California Department of Human Resources
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: According to CalHR and DOF, this bill is a necessary part of the overall agreement between the Administration and state employees to address the unfunded liability for retiree health benefits.
Discussed in Hearing
2MIN
Assembly Floor
17MIN
Assembly Standing Committee on Budget
2MIN
Senate Standing Committee on Budget and Fiscal Review
4MIN
Senate Standing Committee on Public Employment and Retirement
Bill Author
Bill Co-Author(s):