CHAPTER _______

An act to add Section 22892.1 to the Government Code, relating to public employee health benefits.

LEGISLATIVE COUNSEL’S DIGEST

AB 1031, Thurmond. Public Employees’ Medical and Hospital Care Act: contracting entities.

The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, governs the funding and provision of postemployment health care benefits for eligible retired public employees and their families. PEMHCA permits certain public entities that meet specified eligibility criteria to elect to obtain health benefit plans through PEMHCA as contracting members.

This bill would specify that a contracting agency that has elected to be subject to PEMHCA is required to fulfill its employer contribution obligations for health benefits, which may include reimbursement for Medicare Part B premiums, as specified.

The people of the State of California do enact as follows:

SECTION 1.  

Section 22892.1 is added to the Government Code, to read:

22892.1.  

A contracting agency that has elected to be subject to this part shall fulfill its obligations with respect to employer contributions for health benefits, which may include reimbursement for Medicare Part B premiums, as mutually agreed upon through collective bargaining or as required by statute, or pursuant to a vesting schedule statutorily imposed or approved in a memorandum of understanding.

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