SB 1202, as introduced, Hueso. Public Employees’ Medical and Hospital Care Act: postemployment health benefits: employer contributions: City of Indio.
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.
This bill would require the employer contributions for postretirement health benefit contribution for postretirement health benefit coverage for an annuitant of the City of Indio who is first hired on or after October 1, 2013, to be based on specified percentages associated with the annuitant’s credited years of service performed with the city, provided that the city not pay an employer contribution for the first 10 years of that credited service. Under this formulation, the employer contribution would be 50% for 10 years of credited service, increasing incrementally by 5% for each additional credited year of service, and reaching 100% if the annuitant attained 20 years of credited service. The bill would require the employer contribution with respect to each annuitant to be mutually agreed upon through collective bargaining by the City of Indio and the exclusive representatives of employees of the city and would allow the employer to adjust the amount from time to time through a collectively bargained memorandum of understanding. If the employees are not represented by a recognized bargaining unit, the employer contribution would be determined by a resolution passed by the city council, 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 22893.2 is added to the Government
2Code, to read:
(a) (1) Notwithstanding any other provision of this
4part, the percentage of employer contribution payable for
5postretirement health benefits for an employee of the City of Indio
6first hired on or after October 1, 2013, shall be based on the
7employee’s completed years of credited service at retirement,
8provided that the City of Indio shall not pay an employer
9contribution for the first 10 years of that credited service, and shall
10pay thereafter as shown in the following table:
| Credited Years of Service | Percentage of Employer Contribution |
| 10 | 50 |
| 11 | 55 |
| 12 | 60 |
| 13 | 65 |
| 14 | 70 |
| 15 | 75 |
| 16 | 80 |
| 17 | 85 |
| 18 | 90 |
| 19 | 95 |
| 20 or more | 100 |
5(2) The application of this section shall be subject to the
6following provisions:
7(A) The employer contribution with respect to each annuitant
8shall be mutually agreed upon through collective bargaining by
9the City of Indio and the exclusive representatives of employees
10of the city. The employer may adjust the amount
from time to time
11through a collectively bargained memorandum of understanding.
12Changes to the employer contribution shall be ratified by a
13resolution passed by the city council of the City of Indio and that
14resolution shall be filed with the board. The employer contribution
15established by this section shall not be less than the adjusted
16employer contributions required by subdivision (b) of Section
1722892.
18(B) In the case of employees not represented by a bargaining
19unit, the employer contribution with respect to each annuitant shall
20be determined pursuant to a resolution passed by a majority of the
21city council of the City of Indio and that resolution shall be filed
22with the board.
23(3) The City of Indio shall certify to the board, in the case of
24employees not represented by a bargaining unit, that there is not
25an applicable memorandum of understanding.
26(4) The credited service of an annuitant for the purpose of
27determining the percentage of employer contributions applicable
28under this section shall mean credited service performed with the
29City of Indio.
30(5) The City of Indio shall provide the board any information
31requested that the board determines is necessary to implement this
32section.
33(b) This section applies only to the City of Indio and only with
34regard to an employee of the city who is first hired on or after
35October 1, 2013.
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