BILL NUMBER: AB 2544	CHAPTERED  09/30/06

	CHAPTER  862
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2006
	PASSED THE ASSEMBLY  AUGUST 22, 2006
	PASSED THE SENATE  AUGUST 21, 2006
	AMENDED IN SENATE  AUGUST 15, 2006
	AMENDED IN SENATE  JUNE 13, 2006

INTRODUCED BY   Assembly Member Pavley

                        FEBRUARY 23, 2006

   An act to amend Section 22892 of the Government Code, relating to
public employee health benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2544, Pavley  Public employee health benefits: contracting
agencies: employer contributions.
   Existing law requires the Board of Administration of the Public
Employees' Retirement System to administer the Public Employees'
Medical and Hospital Care Act. Existing law permits a contracting
agency to elect to be subject to the act for its employees and
annuitants, provided that employer contributions for annuitants at
all times equal employer contributions paid for active employees.
Notwithstanding that provision, the act authorizes a contracting
agency to establish a lesser monthly employer contribution for
annuitants than for employees, provided that the monthly contribution
for annuitants is annually increased by an amount not less than 5%
of the monthly employer contribution for employees, until the time
that the employer contribution for annuitants equals the employer
contribution paid for employees.
   This bill would instead authorize the establishment of a lesser
monthly employer contribution for annuitants only if that
contribution is annually increased to equal an amount not less than
the number of years that the contracting agency has been subject to
that provision multiplied by 5% of the current monthly employer
contribution for employees, which increase shall not exceed $100
annually.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 22892 of the Government Code is amended to
read:
   22892.  (a) The employer contribution of a contracting agency
shall begin on the effective date of enrollment and shall be the
amount fixed from time to time by resolution of the governing body of
the agency. The resolution shall be filed with the board and the
contribution amount shall be effective on the first day of the second
month following the month in which the resolution is received by the
system.
   (b) (1) The employer contribution shall be an equal amount for
both employees and annuitants, but may not be less than the
following:
   (A) Prior to January 1, 2004, sixteen dollars ($16) per month.
   (B) During calendar year 2004, thirty-two dollars and twenty cents
($32.20) per month.
   (C) During calendar year 2005, forty-eight dollars and forty cents
($48.40) per month.
   (D) During calendar year 2006, sixty-four dollars and sixty cents
($64.60) per month.
   (E) During calendar year 2007, eighty dollars and eighty cents
($80.80) per month.
   (F) During calendar year 2008, ninety-seven dollars ($97) per
month.
   (2) Commencing January 1, 2009, the employer contribution shall be
adjusted annually by the board to reflect any change in the medical
care component of the Consumer Price Index and shall be rounded to
the nearest dollar.
   (c) A contracting agency may, notwithstanding the equal
contribution requirement of subdivision (b), establish a lesser
monthly employer contribution for annuitants than for employees,
provided that the monthly contribution for annuitants is annually
increased to equal an amount not less than the number of years that
the contracting agency has been subject to this subdivision
multiplied by 5 percent of the current monthly employer contribution
for employees, until the time that the employer contribution for
annuitants equals the employer contribution paid for employees. This
annual adjustment to the minimum monthly employer contribution for an
annuitant as authorized by this subdivision shall not exceed one
hundred dollars ($100). This subdivision shall only apply to agencies
that first become subject to this part on or after January 1, 1986.