BILL NUMBER: AB 468	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hayashi

                        FEBRUARY 24, 2009

   An act to add Section 22898 to the Government Code, relating to
the Public Employees' Medical and Hospital Care Act.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 468, as introduced, Hayashi. Public Employees' Medical and
Hospital Care Act: 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 the contracting agency and each employee or
annuitant contribute a portion of the cost of providing the benefit
coverage afforded under the health benefit plan approved or
maintained by the board in which the employee or annuitant may be
enrolled. Existing law specifies that the employer contribution of a
contracting agency begins on the effective date of enrollment and is
the amount fixed from time to time by resolution of the governing
body of the agency. The resolution is required to 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.
   This bill would require the employer contribution for
postretirement health benefit coverage for an annuitant of a
specified contracting agency to be based on the annuitant's completed
years of service credited with the contracting agency at retirement.
This bill would prohibit the contracting agency from paying any
employer contribution for the first 5 years of the credited service,
as defined. The bill would require the contracting agency to pay an
employer contribution of 50% after the employee had 5 years of
service with the contracting agency and that amount would be
increased by 5% per year thereafter, with 100% of the portion of the
cost being paid for by the contracting agency when the annuitant is
credited service of 15 years or more. The bill would require that the
employer contribution with respect to each annuitant be adjusted by
the employer each year, but would prohibit the contribution from
exceeding 100% of the weighted average of the health benefits plan
premiums for employees or annuitants enrolled for self alone.
   The bill would provide that those provisions would only apply to
employees of the Alameda County Transportation Improvement Authority
who are first hired on or after November 1, 2004.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 22898 is added to the Government Code, to read:

   22898.  (a) Notwithstanding any other provision of this part, the
employer contribution for postretirement health benefit coverage for
an annuitant of the contracting agency subject to this section shall
be based on the annuitant's completed years of service credited with
the contracting agency at retirement.
   (b) The contracting agency shall pay no employer contribution for
the first five years of that credited service. The contracting agency
shall pay 50 percent after five years with the contracting agency
and the amount shall be increased by 5 percent per year thereafter,
with 100 percent of the portion of the cost being paid for by the
contracting agency when the annuitant is credited service of 15 years
or more. The employer contribution with respect to each annuitant
shall be adjusted by the employer each year, but in no event shall
exceed 100 percent of the weighted average of the health benefits
plan premiums for employees or annuitants enrolled for self alone.
   (c) For purposes of this section, "credited service" means service
as defined in Section 20069, except that not less than five years of
that service shall be performed entirely with the Alameda County
Transportation Improvement Authority.
   (d) This section shall only apply to employees of the Alameda
County Transportation Improvement Authority who are first hired on or
after November 1, 2004.