AB 2582, as amended, Bonta. Public Employees’ Medical and Hospital Care Act: postemployment health benefits: the San Francisco Bay Area Rapid Transit District.
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 afforded under the health benefit plan approved or maintained by the board in which the employee or annuitant may be enrolled. Existing law specifies that the employer contribution of a contracting agency begins on the effective date of enrollment and is the amount fixed from time to time by resolution of the governing body of the agency. Existing law provides an optional vesting schedule, for contracting agencies, that links the employer contribution, as specified, to percentages associated with an employee’s credited years of service. Under this formulation, the employer contribution for the contracting agency reaches 100% of a specified amount when the employee attains 20 years of credited service, with certain exceptions. Existing law requires accounts to be maintained in the Public Employees’ Contingency Reserve Fund to consist of administrative costs required to be contributed by contracting agencies and of health plan premiums paid by contracting agencies, which are continuously appropriated for specified purposes.
This bill would authorize the San Francisco Bay Area Rapid Transit District to make employer contributions for postretirement health benefit contribution for postretirement health benefit coverage for the district’sbegin delete unrepresented employees, including members of the district board of directors, and members of any unit of employees whose terms and conditions of employment are determined through collective
bargaining,end deletebegin insert employeesend insert who are first hired on or after January 1, 2014. This bill would require the employer contributions to be based on percentages associated with the annuitant’s credited years of service with the district, as provided. Under this formulation, the employer contribution would be 50% for 10 years of credited service, increasing incrementally by 10% each credited year of service, and reaching 100% if the annuitant attained 15 years of credited service, with a specified exception for those employees who retire for disability.
This bill would state that it is intended to have retroactive effect and application to January 1, 2014.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22902 is added to the Government Code,
2to read:
(a) For the purposes of this section, the term “district”
4shall mean the San Francisco Bay Area Rapid Transit District.
5(b) This section, if enacted into law after January 1, 2014, is
6intended to have retroactive effect and application to January 1,
72014.
8(c) Notwithstanding any other provision of this part, the district
9may make contributions for postretirement health benefits for its
10unrepresented employees, including members of the district board
11of directors to the extent that they are eligible for contributions
12under existing law, and members of any unit of employees whose
13terms and conditions of employment
are determined through
P3 1collective bargaining. Those contributions shall be subject to the
2following:
3(1) Credited years of service that the employee worked with the
4district.
5(2) An agreement with all represented employees regarding
6postretirement health coverage mutually agreed upon through
7collective bargaining.
8(3) Contributions for postretirement health benefits for the
9district’s unrepresented employees, including members of the
10district board of directors to the extent that they are eligible for
11contributions under existing law, may only be made in accordance
12with the eligibility criteria and schedule below.
13(d) An agreement reached pursuant to
subdivision (c) shall
14provide that employer contributions for postretirement health
15benefits for employees shall be made in the following percentages
16for the applicable credited years of service:
17
| Credited Years of Service | Percentage of Employer Contribution |
| 10 | 50 |
| 11 | 60 |
| 12 | 70 |
| 13 | 80 |
| 14 | 90 |
| 15 | 100 |
27(e) An agreement reached pursuant to subdivision (c) shall
28authorize full employer contributions for postretirement health
29benefits for those employees who retire for disability with five
30years of credited service with the district.
31(f) (1) This section shall only apply to district employeesbegin insert firstend insert
32 hired on or after January 1, 2014, and to directors who first serve
33as a director on or after January 1, 2014.
34(2) This section shall apply to employees whose terms and
35conditions of employment are determined through collective
36bargaining only if the agreement is expressly incorporated by
37reference into, or made
a part of, a memorandum of understanding.
38(g) This section is not applicable to any employee who retires
39before the effective date of the memorandum of understanding
40referenced in paragraph (2) of subdivision (f). In the event that the
P4 1memorandum of understanding establishes a retroactive effective
2date, this section shall apply only to prospective retirements.
3(h) The district shall provide, in the manner prescribed by the
4board, a notification of each agreement established pursuant to
5this section or personnel action incorporating or applying this
6section, and any additional information necessary to implement
7this section.
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