AB 1144, as introduced, Hall. Public Employees’ Medical and Hospital Care Act: City of Carson.
The Public Employees’ Medical and Hospital Care Act (PEMHCA) authorizes the Board of Administration of the Public Employees’ Retirement System to contract with carriers for health benefit plans for employees and annuitants, as defined. Existing law requires an agency contracting for coverage under PEMHCA and each employee or annuitant to contribute a portion of the cost of providing the benefit coverage afforded under the health benefit plan in which the employee or annuitant may be enrolled and prescribes various schedules for employer payments and requirements in relation to those payments.
This bill would require the employer contribution for postretirement health benefit coverage for an employee of the City of Carson to be based on percentages associated with the annuitant’s credited years of service. The bill would provide a formulation for the employer contribution that would reach 100% when the employee attains 10 years of credited service, with specified exceptions. The bill would define credited service and would require that at least 5 years of credited service to have been performed with the City of Carson. The bill would require that the employer provide any information requested by the board that the board deems necessary to implement the section. The bill would except from the formulation annuitants who have retired for disability and annuitants who have 10 or more years of service entirely with the city. The bill would require the board to establish application procedures and eligibility criteria to implement this provision.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22900.1 is added to the Government
2Code, to read:
(a) Notwithstanding any other provision of this part,
4the percentage of employer contribution payable for postretirement
5health benefits for an employee of the City of Carson, California,
6except as provided in subdivision (b), shall be based on the
7employee’s completed years of credited service, provided that the
8City of Carson shall not pay an employer contribution for the first
9five years of that credited service, and shall pay thereafter as shown
10in the following table:
|
Credited Years of Service Percentage of Employer Contribution |
|
|
5 50 |
|
|
6 60 |
|
|
7 70 |
|
|
8 80 |
|
|
9 90 |
|
|
10 100 |
20The application of this subdivision shall be subject to the
21following:
22(1) The employer contribution with respect to each annuitant
23shall be adjusted by
the employer each year by resolution of the
24City of Carson City Council, and that resolution shall be filed with
25the board annually.
26(2) The employer shall certify to the board, in the case of
27employees not represented by a bargaining unit, that there is not
28an applicable memorandum of understanding.
29(3) The credited service of an annuitant for the purpose of
30determining the percentage of employer contributions applicable
31under this section shall mean state service as defined in Section
P3 120069, except that at least five years of credited service shall have
2been performed with the City of Carson.
3(4) The employer shall provide the board any information
4requested that the board determines is necessary to implement this
5section.
6(b) Notwithstanding
subdivision (a), the contribution payable
7by the employer subject to this section shall be equal to 100 percent
8of the amount established pursuant to paragraph (1) of subdivision
9(a) on behalf of any annuitant who either:
10(1) Retired for disability.
11(2) Retired for service with 10 or more years of service credit
12entirely with that employer, regardless of the number of days after
13separation from employment. The contribution payable by the
14employer under this paragraph shall be paid only if it is greater
15than, and made in lieu of, a contribution payable to the annuitant
16by another employer under this part. The board shall establish
17application procedures and eligibility criteria to implement this
18paragraph.
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