Amended in Senate August 19, 2013

Amended in Assembly April 25, 2013

Amended in Assembly April 11, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1346

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 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 District who retires on or after the effective date of a memorandum begin insert or resolution end insert 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 District provide to the board a begin insert specified end insert notification begin delete of the agreement end delete and any additional information requested by the board that the board deems necessary to implement the section. The bill would begin delete except end delete begin insert exempt end insert 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 District, as specified. begin insert This bill would apply only to employees hired on or after December 1, 2011. end insert

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 begin delete 22893 end delete begin insert 22892 end insert , the
percentage of employer contribution payable for postretirement
health benefits for an employee of the Sacramento Metropolitan
Fire 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 Years of Service	Percentage of Employer 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)  begin delete The end delete begin insert (A) end insert begin insert   end insert begin insert In the case of the employees represented by a
bargaining unit, the end insert 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.

begin insert

(B) In the case of employees not represented by a bargaining
unit, the employer contribution with respect to each annuitant
shall be determined pursuant to a resolution adopted by a majority
of the Sacramento Metropolitan Fire District Board of Directors
and shall be in accordance with Section 7522.40.

end insert begin insert

(C) The employer contribution established by this paragraph
shall not be less than the adjusted employer contribution required
by subdivision (b) of Section 22892.

end insert

(2) The credited service of an begin delete annuitant end delete begin insert employee end insert 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 District.

(3) The Sacramento Metropolitan Fire District shall provide, in
the manner prescribed by the board, a notification of the agreement
begin insert and resolution end insert adopted pursuant to begin delete this section end delete begin insert paragraph (1) end insert and
any additional information necessary to implement this section.

(4) The Sacramento Metropolitan Fire 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.

begin delete

(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.

end delete

(b) Notwithstanding subdivision (a), the contribution payable
by the Sacramento Metropolitan Fire 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 District, regardless
of the number of days after separation from employment. The
contribution payable by the Sacramento Metropolitan Fire 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 District, or its successor. begin insert This section applies only with regard
to the employees of the district hired on or after December 1, 2011. end insert