Amended in Assembly April 29, 2013

Amended in Assembly April 15, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1144

Introduced by Assembly Member Hall

February 22, 2013

An act to add Section 22893.1 to the Government Code, relating to public employee benefits.

LEGISLATIVE COUNSEL’S DIGEST

AB 1144, as amended, Hall. Public Employees’ Medical and Hospital Care Act: begin delete contracting agencies. end delete begin insert City of Carson. end insert

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.

begin insert

This bill would require the employer contribution for postretirement health benefit coverage for an employee of the City of Carson to be based on specified percentages associated with the employee’s credited years of service, which would reach 100% when the employee attains 10 years of credited service. The bill would define credited service as service performed with the City of Carson. The bill would require that the employer contribution with respect to each employee be mutually agreed upon through collective bargaining, as specified. The bill would require that the employer provide any information requested by the board that the board deems necessary to implement the section.

end insert begin delete

This bill would authorize a contracting agency, the employees’ exclusive representative, and unrepresented employees to agree that the employer contribution for postretirement health coverage be subject to specified factors, including that the contributions be subject to a mutually agreed upon memorandum of understanding that is not subject to impasse procedures. The bill would prohibit a memorandum of understanding entered into in this context from applying to retired employees. The bill would prohibit an employer contribution for an employee with less than 5 years of credited service with the contracting agency.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 22893.1 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 22893.1. end insert   

(a) Notwithstanding any other provision of this part,
the percentage of employer contribution payable for postretirement
health benefits for an employee of the City of Carson, California,
shall be based on the employee’s completed years of credited
service, provided that the City of Carson shall not pay an employer
contribution for the first five years of that credited service, and
shall pay thereafter as shown in the following table:

 

begin insert Credited Years of Service   Percentage of Employer Contribution end insert

begin insert  5     50 end insert

begin insert  6     60 end insert

begin insert  7     70 end insert

begin insert  8     80 end insert

begin insert  9     90 end insert

begin insert  10     100 end insert

 

The application of this subdivision shall be subject to the
following:

(1) The employer contribution with respect to each annuitant
shall be mutually agreed upon through collective bargaining by
the City of Carson, the exclusive representatives of employees of
the city, and unrepresented employees of the city. The employer
may adjust the amount from time to time through a collectively
bargained memorandum of understanding. Changes to the
employer contribution shall be ratified by a resolution passed by
the city council of the City of Carson and that resolution shall be
filed with the board.

(2) The employer shall certify to the board, in the case of
employees not represented by a bargaining unit, that there is not
an applicable memorandum of understanding.

(3) The credited service of an annuitant for the purpose of
determining the percentage of employer contributions applicable
under this section shall mean credited service performed with the
City of Carson.

(4) The employer shall provide the board any information
requested that the board determines is necessary to implement this
section.

(b) This section is not applicable to any employee who retired
before the effective date of the memorandum of understanding. In
the event that the memorandum of understanding establishes a
retroactive effective date, this section applies only prospectively
and any employee who retires before the memorandum of
understanding is signed may not be affected by it.

end insert

begin delete

SECTION 1.  

Section 22893.1 is added to the Government
Code, to read:

22893.1.  

(a) Notwithstanding any other provision of this part,
the contracting agency, the exclusive representative of employees
of the agency, and unrepresented employees of the agency may
agree that the employer contribution for postretirement health
coverage shall be subject to the following:

(1) Credited years of service that the employee worked with the
contracting agency.

(2) A memorandum of understanding regarding postretirement
health coverage mutually agreed upon through collective
bargaining. This issue may not be subject to the impasse procedures
set forth in Article 9 (commencing with Section 3548) of Chapter
10.7 of Division 4 of Title 1.

(3) The employer shall certify to the board, in the case of an
employee not represented by a bargaining unit, that there is not an
applicable memorandum of understanding.

(b) A memorandum of understanding regarding employer
contributions entered into pursuant to the authorization provided
by this section shall not apply to an employee who retired before
the effective date of the memorandum of understanding and, to
the extent a memorandum of understanding purports to apply to a
employee who is retired, those provisions shall be without effect.

(c) An agreement reached pursuant to subdivision (a) shall not
be valid if it provides an employer contribution for an employee
with less than five years of credited service with the contracting
agency.

(d) The contracting agency shall provide, in the manner
prescribed by the board, a notification of the agreement established
pursuant to this section and any additional information necessary
to implement this section.

end delete