BILL NUMBER: AB 1346	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2013
	AMENDED IN ASSEMBLY  APRIL 11, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Pan

                        FEBRUARY 22, 2013

   An act to add Section 22896 to the Government Code, relating to
postemployment health benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1346, as amended, Pan. Postemployment health benefits:
Sacramento Metropolitan Fire  Department:  
District:  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, as specified. Under this formulation, the employer
contribution for the contracting agency begins at 10 years of service
and reaches 100% of a specified amount when the employee attains 20
years of credited service, with certain exceptions. Existing law
provides alternate formulations for specified contracting agencies.
   This bill would provide an additional exception by requiring the
employer contribution for postretirement health benefit coverage for
an annuitant of the Sacramento Metropolitan Fire  Department
  District  who retires on or after the effective
date of a memorandum related to employer contributions, to be based
on a revised formula in which the employer contribution begins at 5
years of service, instead of 10 and would reach 100% of a specified
amount if the annuitant attained 20 years of credited service, with
certain exceptions. The bill would require that the Sacramento
Metropolitan Fire  Department   District 
provide to the board a notification of the agreement and any
additional information requested by the board that the board deems
necessary to implement the section. The bill would except from the
formulation described annuitants who have retired for disability or
who have retired for service with 20 or more years of service with
the Sacramento Metropolitan Fire  Department  
District  , as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 22896 is added to the Government Code, to read:

   22896.  (a)  Notwithstanding Section 22893, the percentage of
employer contribution payable for postretirement health benefits for
an employee of the Sacramento Metropolitan Fire  Department
  District  subject to this section shall, except
as provided in subdivision (b), be based on the member's completed
years of credited state service at retirement as shown in the
following table:
Credited              Percentage of
Years                 Employer
of Service            Contribution
5                     25
6                     30
7                     35
8                     40
9                     45
10                    50
11                    55
12                    60
13                    65
14                    70
15                    75
16                    80
17                    85
18                    90
19                    95
20 or more             100


   The application of this subdivision shall be subject to the
following:
   (1) The employer contribution with respect to each annuitant shall
be determined pursuant to a memorandum of understanding approved
through a meet and confer process pursuant to the Meyers-Milias-Brown
Act (Chapter 10 (commencing with Section 3500) of Division 4 of
Title 1) with any recognized employee organization. The issue shall
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.
   (2) The credited service of an annuitant for the purpose of
determining the percentage of employer contributions applicable under
this section shall mean state service as defined in Section 20069,
except that at least five years of service shall have been performed
entirely with the Sacramento Metropolitan Fire  Department
  District  .
   (3) The Sacramento Metropolitan Fire  Department 
 District  shall provide, in the manner prescribed by the
board, a notification of the agreement adopted pursuant to this
section and any additional information necessary to implement this
section.
   (4) The Sacramento Metropolitan Fire  Department 
 District  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.
   (5) This section shall apply only to employees who retire for
service and whose retirement date is on or after the effective date
of the memorandum of understanding entered into as described in this
subdivision. This section is not applicable to any employee who
retired before the effective date of the memorandum of understanding.

   (b) Notwithstanding subdivision (a), the contribution payable by
the Sacramento Metropolitan Fire  Department  
District  shall be equal to 100 percent of the amount
established pursuant to paragraph (1) of subdivision (a) on behalf of
any annuitant who either:
   (1) Retired for disability.
   (2) Retired for service with 20 or more years of service credit
entirely with the Sacramento Metropolitan Fire  Department
  D   istrict  , regardless of the number
of days after separation from employment. The contribution payable by
the Sacramento Metropolitan Fire  Department 
District  under this paragraph shall be paid only if it is
greater than, and made in lieu of, a contribution payable to the
annuitant by another employer under this part. The board shall
establish application procedures and eligibility criteria to
implement this paragraph.
   (c) This section applies only to the Sacramento Metropolitan Fire
 Department   District  , or its successor.