BILL ANALYSIS �
AB 1377
Page 1
Date of Hearing: June 20, 2013
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Rob Bonta, Chair
AB 1377 (P.E.,R.& S.S. Com.) - As Amended: June 20, 2013
SUBJECT : State employees: memorandum of understanding.
SUMMARY : Approves the recent memoranda of understanding (MOU)
agreed to by the state and the state bargaining units (BUs)
represented exclusively by the Service Employees International
Union (SEIU), Local 1000, including BU 1 (Professional,
Administrative, Financial, and Staff Services), BU 3
(Professional Educators and Librarians), BU 4 (Office and
Allied), BU 11 (Engineering and Scientific Technicians), BU 14
(Printing and Allied Trades), BU 15 (Allied Services), BU 17
(Registered Nurses), BU 20 (Medical and Social Services), and,
BU 21 (Educational Consultant and Library).
EXISTING LAW requires, under the State Employee-Employer
Relations Act (the Dills Act), collective bargaining agreements
(MOUs) that are negotiated between the state and exclusive
representatives of each of the 21 state bargaining units.
FISCAL EFFECT : According to the California Department of Human
Resources (CalHR)
Fiscal Year 2013-2014 Cost: $1.4 million (General Fund - $0.4
million and Other Funds - $1.0 million)
Total Incremental Cost: $303.0 million (General Fund - $127.6
million and Other Funds - $175.4 million)
Total Budgetary Cost: $439.0 million (General Fund - $184.7
million and Other Funds - $254.3
million)
COMMENTS : The following information regarding the general
provisions of the MOUs was provided by CalHR:
Number of Employees
This agreement affects approximately 91,077 full-time
equivalents.
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Retirement Benefit Formula Calculation
Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, and 21, employees
who become CalPERS members on or after January 1, 2013, are
subject to the Public Employees' Pension Reform Act (PEPRA)
Retirement Formula of 2% at age 62.
Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, and 21 employees
who become CalPERS members on or after January 1, 2013, are
subject to the State Safety PEPRA Retirement Formula of 2% at
age 57.
Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, and 21, employees
who become CalPERS members on or after January 1, 2013, are
subject to the Second Tier PEPRA Retirement Formula of 1.25% at
age 67.
Employee Pension Contribution
All Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, and 21 members
in First Tier Miscellaneous Retirement shall contribute 8% of
monthly compensation over $513.
Effective July 1, 2013, all BU 1, 3, 4, 11, 14, 15, 17, and 20
members in First Tier Industrial Retirement shall have their
contribution increased from 8% to 9% of monthly compensation
over $513.
Effective July 1, 2013, all BU 1, 3, 4, 11, 14, 15, 17, and 20
members in First Tier Industrial Retirement who do not
participate in social security shall have their contribution
increased from 9% to 10% of monthly compensation over $317.
Effective July 1, 2013, all Second Tier members shall contribute
1.5% of monthly pensionable compensation and the contribution
will increase by 1.5% points annually. The final annual increase
in the contribution rate shall be adjusted as appropriate to
reach fifty percent (50%) of normal cost.
Effective July 1, 2013, all BU 1, 3, 4, 11, 14, 15, 17, 20, and
21 members in State Safety Retirement shall have their
contribution increased from 9% to 10% of monthly compensation
over $317.
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Effective July 1, 2014, all Bargaining Unit 1, 3, 4, 11, 14, 15,
17, 20, and 21 members in State Safety Retirement shall have
their contribution increased from 10% to 11% of monthly
compensation over $317.
Compensation - Cost of Living Increase
Effective July 1, 2014, contingent on the projected State
revenues of the 2014-15 Budget, all BU 1, 3, 4, 11, 14, 15, 17,
20, and 21 represented classifications (excluding Seasonal
Clerks) will receive a 2% General Salary Increase (GSI).
Effective July 1, 2015, all BU 1, 3, 4, 11, 14, 15, 17, 20, and
21 represented classifications (excluding Seasonal Clerks) will
receive a 2.5% GSI.
If the projected State revenues are not achieved, all BU 1, 3,
4, 11, 14, 15, 17, 20, and 21 represented classifications
(excluding Seasonal Clerks) will receive a 4.5% GSI effective
July 1, 2015.
Effective July 1, 2014, contingent on the projected State
revenues of the 2014-15 Budget, the Seasonal Clerk
classification shall receive a 50 cents per hour GSI.
If the projected State revenues are not achieved, effective July
1, 2015, the Seasonal Clerk classification shall have a 50 cents
per hour General Salary Increase effective July 1, 2015.
Health Benefits - Employer Contribution
The State's monthly contribution to the health insurance portion
of the BU 1, 4, 11, 14, 15, 17, 20, and 21 employee's allowance
shall be an amount equal to 80% of the weighted average of the
premiums for the four Basic health benefit plans with the
largest enrollment (the 80/80 formula).
The State's monthly contribution to the health insurance portion
of BU 3 employee allowance will be set at a dollar amount that
equals the 80/80 formula. The amounts shall be increased on
January 1, 2014, January 1, 2015, and January 1, 2016.
Health Benefits - Dependent Coverage
Thirty (30) days after ratification, employees will become
AB 1377
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eligible for the full employer contribution for dependent health
coverage after one year of State employment. The State will
contribute 75% of the normal amount for dependents during the
vesting period.
Miscellaneous
The State will not mandate a reduction in work hours
(furlough/Personal Leave Program) program for BU 1, 3, 4, 11,
14, 15, 17, 20, and 21 employees during the term of this
agreement.
The State and SEI U Local 1000 agree to present to the
Legislature, as part of the legislation implementing this MOU, a
provision to appropriate funds to cover the economic terms of
this agreement through July 1, 2016.
Business and Travel, the State increased the meal reimbursement
rates by $2.00. The State increased lodging rates as follows:
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|County |Lodging Rate |
|--------------------------------+--------------------------------|
|All counties except those |$90 |
|listed below. | |
|--------------------------------+--------------------------------|
|Los Angeles, Orange, Ventura, |$120 |
|Edwards AFB, less the city of | |
|Santa Monica | |
|--------------------------------+--------------------------------|
|Sacramento, Napa, Riverside |$95 |
|--------------------------------+--------------------------------|
|San Diego, Monterey, Alameda, |$125 |
|San Mateo, Santa Clara | |
|--------------------------------+--------------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
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State Owed Housing- rental rates will be frozen until July 1,
2015, for those employees required to live in state housing.
Organ Donation was incorporated into the MOU agreements
consistent with AB 1825 (Nakano), Chapter 869, Statutes of 2002.
AB 1377
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The State continues its commitment to work with SEIU within the
already established Contracting Out Committees in an effort to
reduce unnecessary costs in contracting out.
The State agrees to ensure that Retired Annuitants work in
accordance with PEPRA requirements and will be utilized for
mission critical work.
The State agrees to continue to provide Student Assistants the
opportunity to gain work experience consistent with their field
of study.
Duration
Three years - July 2, 2013, through July 1, 2016.
REGISTERED SUPPORT / OPPOSITION :
Support
California Department of Human Resources (Co-Sponsor)
SEIU Local 1000 (Co-Sponsor)
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN: 0000772