BILL NUMBER: AB 1346 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 19, 2013
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 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 or resolution
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 specified
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
exempt 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. This bill would apply only to employees hired on
or after December 1, 2011.
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
22892 , 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 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 (A) In the
case of the employees represented by a bargaining unit, 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.
(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.
(C) The employer contribution established by this paragraph shall
not be less than the adjusted employer contribution required by
subdivision (b) of Section 22892.
(2) The credited service of an annuitant
employee 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
and resolution adopted pursuant to this section
paragraph (1) 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.
(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 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. This section applies only with
regard to the employees of the district hired on or after December 1,
2011.