BILL ANALYSIS AB 649 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 649 (Negrete McLeod) As Amended September 14, 2001 2/3 vote ----------------------------------------------------------------- |ASSEMBLY: | |(May 17, 2001) |SENATE: |33-2 |(September 14, | | | | | | |2001) | ----------------------------------------------------------------- Original Committee Reference: P.E.,R. & S.S. SUMMARY : Ratifies the memoranda of understanding (MOU) between the state and State Bargaining Units (Units) 5 (represented exclusively by the California Association of Highway Patrolmen) and 8 (represented exclusively by the California Department of Forestry Firefighters). The Senate amendments delete the Assembly version of the bill, and instead: 1)Provides the following for Unit 5 employees: a) Effective July 1, 2003, Unit 5 members shall receive a general salary increase of forty-five percent (45%) of the agreed upon difference between the weighted average of the total compensation for the five jurisdictions referenced in Government Code Section 19827 and the weighted average for the CHP Officer. b) Effective July 1, 2004, Unit 5 members shall receive a general salary increase of sixty-five percent (65%) of the agreed upon difference between the weighted average of the total compensation for the five jurisdictions referenced in Government Code Section 19827 and the weighted average for the CHP Officer. c) Effective July 1, 2005, Unit 5 members shall receive a general salary increase of ninety-five percent (95%) of the agreed upon difference between the weighted average of the total compensation for the five jurisdictions referenced in Government Code Section 19827 and the weighted average for the CHP Officer. d) Effective July 1, 2006, Unit 5 members shall receive a AB 649 Page 2 general salary increase of one hundred percent (100%) of the agreed upon difference between the weighted average of the total compensation for the five jurisdictions referenced in Government Code Section 19827 and the weighted average for the CHP Officer. e) The State will continue to pick up 100 percent of the employee's retirement contribution. f) For a member who retires on or after July 1, 2001 and prior to July 1, 2004, the member's payrate shall include one-half of the normal contributions specified in subdivision (a) of Section 20681 for the portion of the member's final compensation period that occurs during the period July 1, 2001 through June 30, 2004. g) For a member who retires on or after July 1, 2004 and prior to July 1, 2006, the member's payrate shall include: i) The normal contributions specified in subdivision (a) of Section 20681 for the portion of the member's final compensation period that occurs during the period July 1, 2004 through June 30, 2006; and ii) One-half of the normal contributions specified in subdivision (a) of Section 20681 for the portion of the member's final compensation period that occurs during the period July 1, 2001 through June 30, 2004. iii) These items remain in effect only until July 1, 2006 and as of that date is repealed. h) Effective July 1, 2001 to December 31, 2001, for employees in Bargaining Unit 5, the State will contribute the following per month toward the costs of health benefits: 1 Party - $187; 2 Party - $371; and, 3 Party - $485. i) Effective January 1, 2002 to December 31, 2002, for employees in Bargaining Unit 5, the State will contribute the following per month toward the costs of health benefits: 1 Party - $195; 2 Party - $387; and, 3 Party - $506. j) Effective January 1, 2003, for employees in Bargaining AB 649 Page 3 Unit 5, the State will contribute the following per month toward the costs of health benefits: 1 Party - $195 plus two thirds of the January 1, 2003 CalPERS HMO increase, as specified; $387 plus two thirds of the January 1, 2003 CalPERS HMO increase, as specified; and, $506 plus two thirds of the January 1, 2003 CalPERS HMO increase, as specified. aa) Makes other changes specific to Unit 5 as specified in the MOU. bb) This agreement is effective July 1, 2001 to July 2, 2006. The Uniform Allowance, Medical Benefits, and Deferred Retirement Option Plan will be automatically reopened July 1, 2003 and each year thereafter during the term of the agreement. 2)Provides the following for Unit 8 employees: a) Effective July 1, 2003, all employees will receive a 5% salary increase. b) Effective August 31, 2001, all employees will receive a 2.5% reduction in the employee's contribution for retirement. c) Effective July 1, 2002, all employees will receive an additional 2.5% reduction in the employee's contribution for retirement. d) Effective July 1, 2003, the employees' contribution rate for retirement will be restored to levels effective on August 30, 2001. e) The parties agree that either party may declare this section of the MOU null and void if the California Public Employees' Retirement (CalPERS) Board of Administration alters the amortization schedule that accelerates the employer payment obligation. If this should occur, the employees' retirement contribution rate will be restored to levels in effect on August 30, 2001 and the parties will immediately meet and confer in good faith to discuss alternative provisions. f) Effective July 1, 2001 to December 31, 2001, the state AB 649 Page 4 contribution per month toward the costs of consolidated benefits will be: 1 Party - $222; 2 Party - $427; and, 3 Party - $563. g) Effective January 1, 2002 to December 31, 2002, the state contribution per month toward the cost of consolidated benefits will be: 1 Party - $230; 2 Party - $443; and , 3 Party - $584. h) Effective January 1, 2003, the state contribution per month toward the cost of consolidated benefits will be: 1 Party - $230 plus two thirds of the January 1 2003 CalPERS HMO premium increase, as specified; 2 Party - $443 plus two thirds of the January 1 2003 CalPERS HMO premium increase, as specified; and, 3 Party - $584 plus two thirds of the January 1 2003 CalPERS HMO premium increase, as specified. i) Makes other changes specific to Unit 8 as specified in the MOU. j) This agreement is effective July 1, 2001 to July 2, 2006. AS PASSED BY THE ASSEMBLY , the bill required all community college districts (CCDs) to offer, by July 1, 2003, the California State Teachers' Retirement System (CalSTRS) Cash Balance (CB) Benefit Program to their part-time employees and also allows those employees the right to elect coverage under the CB Benefit Program, Social Security, or an alternative retirement plan offered by the employer. FISCAL EFFECT : Funding needed to implement the provisions of the collective bargaining agreements will be carried in AB 933 (Migden). COMMENTS : Under existing law, the Ralph C. Dills Act requires the Legislature to ratify each MOU prior to implementation when the agreement contains provisions requiring the expenditure of state funds. This bill represents the negotiated agreement between the state and state bargaining units 5 and 8. Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957 AB 649 Page 5 FN: 0003710