BILL ANALYSIS AB 2742 Page 1 Date of Hearing: April 21, 2010 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Alberto Torrico, Chair AB 2742 (Blakeslee) - As Amended: April 13, 2010 SUBJECT : Public employment: retirement: survivors' benefits. SUMMARY : Allows state employees to donate leave credits to a leave bank of an eligible retired state employee who died from a non-work related illness or injury within 12 months of retirement. Specifically, this bill : 1)Allows a request to be made of an employer to allow state employees to donate leave credits to a leave bank (Survivor Benefit Account) established for a retired state employee who dies from a non-work related illness or injury within 12 months of retirement. 2)Specifies that the donated leave cannot exceed $50,000 and will be cashed out to the person designated to receive the deceased employee's leave balance. 3)Allows donations to be accepted for 30 days following approval of the request. 4)Applies these provisions retroactively to anyone who retired on or after December 1, 2009. Leave donations for a retired state employee who died on or before December 31, 2010, will be accepted until January 31, 2011. 5)Defines "leave" to include annual leave, vacation, holiday, personal leave, or excess leave. 6)Defines "retired state employee" as any retired state employee who at the time of retirement was a member of a collective bargaining unit that had bargained for this benefit for active employees who die from a non-work related illness or injury. FISCAL EFFECT : Unknown. COMMENTS : State Bargaining Unit 6 (Corrections) has agreed, through collective bargaining, to language allowing Survivor Benefit Accounts to be established for active employees who die AB 2742 Page 2 as a result of a non-work related illness or injury. Employees are allowed to donate annual leave, vacation, holiday, personal leave or excess time to the leave bank of the deceased employee. The donated time must be cashed out to provide direct financial assistance to the person entitled to receive the value of the deceased employee's leave balances. The maximum limit of contributions/compensation is limited to $50,000 and donations are only accepted for a period of 30 days following approval of the request. The only other state bargaining unit that has agreed to a similar contract provision is Bargaining Unit 5 (Highway Patrol). According to the author, "On January 7, 2010, CCPOA correctional officer Lt. VanHoose, died of brain cancer. He left behind his wife Stacy and a daughter. Lt. VanHoose had continued to work throughout his illness. He took an early medical retirement on December 29, 2009, only days before his death. After he passed away, many of his co-workers wanted to honor their colleague and support his family by donating their leave time to a Survivor Benefit Account. The request was denied by the California Department of Corrections and Rehabilitation's (CDCR's) Office of Labor Relations and Human Resources. "In response to the inquiries made by my Assembly office, management from both CDCR's Office of Labor Relations and Human Resources met to reevaluate the denial of the Survivor Benefit Account. They discussed the possibility of approving the request to set up an account despite the issue of the medical retirement prior to his death. Because Lt VanHoose did not possess active status as an employee of the State at the time of his death it was determined that there was no mechanism that would allow for the donation of leave credits to a Survivor Benefit Account. The Legislative Analyst for CDCR explained that survivor benefits, with respect to an excluded employee specifically provide that: 'If an excluded employee on pay status dies due to an illness or injury that was not incurred in the line of duty, a request may be made to the appointing authority to allow employees to donate (various types of leave) to a leave bank for the deceased employee'. Those parameters are not applicable as Lt. VanHoose was retired (not an employee on pay status) at the time of his death." According to supporters, "Many state employees would like the opportunity to contribute to a family of one of their fallen co-workers; however, given the current economy and the financial AB 2742 Page 3 pinch of furloughs, an employee may not be able to afford a monetary contribution. Allowing employees to donate leave credits gives state workers an option that will financially permit more generosity in these trying fiscal times." REGISTERED SUPPORT / OPPOSITION : Support California Statewide Law Enforcement Association Opposition None on file Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957