SB 95,
as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2015. end deletebegin insertState employees: memorandum of understanding.end insert
(1) Existing law provides that a provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees that requires the expenditure of funds does not become effective unless approved by the Legislature in the annual Budget Act.
end insertbegin insertThis bill would approve provisions of a memorandum of understanding entered into between the state employer and State Bargaining Unit 6, the California Correctional Peace Officers Association, that require the expenditure of funds, and would provide that these provisions will become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.
end insertbegin insertThis bill would provide that provisions of the memorandum of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature, and would require the state employer and the affected employee organization to meet and confer to renegotiate the affected provisions if funds for those provisions are not specifically appropriated by the Legislature. The bill would appropriate $31,869,000 in augmentation of certain items of the Budget Act of 2015, according to a specified schedule, for State Bargaining Unit 6 employee compensation for expenditure in the 2015-16 fiscal year. The bill would appropriate to the Controller from the General Fund, unallocated special funds, including federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 2016-17 or 2017-18 fiscal years, as specified.
end insertbegin insert(2) The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, prescribes methods for calculating the state employer contribution for postemployment health care benefits for eligible retired public employees and their families and for the vesting of these benefits. PEMHCA requires the employer contribution for an employee or annuitant who is in employment or retired from state service to be adjusted by the Legislature in the annual Budget Act, as specified. PEMHCA prescribes different ways of calculating the employer contributions for employees and annuitants depending on date of hire, years of service, and bargaining unit.
end insertbegin insertThis bill, for state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified, would limit the employer contribution for annuitants to 80% of the weighted average of the health benefit plan premiums for an active employee enrolled for self-alone, during the benefit year to which the formula is applied, for the 4 health benefit plans with the largest state civil service enrollment, as specified. The bill would similarly limit the employer contribution for an enrolled family member of an annuitant to 80% of the weighted average of the additional premiums required for enrollment of those family members during the benefit year to which the formula is applied and would provide the same limit on employer contributions for annuitants enrolled in Medicare health benefit plans.
end insertbegin insert(3) PEMHCA requires state employees to have a specified number of years of state service, depending on hiring date and other factors, before they may receive any portion of the employer contribution payable for annuitants for postretirement health benefits and increases the percentage they may receive based upon additional years of service.
end insertbegin insertThis bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified, from receiving any portion of the employer contribution payable for annuitants unless the person is credited with at least 15 years of state service at the time of retirement. The bill would prescribe the percentage of the employer contribution payable for postretirement health benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
end insertbegin insert(4) Existing law permits the state to assume a function from a public agency and the related personnel and, in this circumstance, prohibits service being credited pursuant to specified provisions for purposes of employer contributions for postretirement health benefits, unless certain conditions are met.
end insertbegin insertThis bill would additionally apply the prohibition described above to specified formulations for the payment of employer contributions for postretirement health benefits that are related to Bargaining Units 6, 9, 10, and 12.
end insertbegin insert(5) PEMHCA generally requires that an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan be paid the amount of the Medicare Part B premiums, as specified, and prohibits this payment from exceeding the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. Existing law excepts from this requirement state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10.
end insertbegin insertThis bill would also except from the requirement described above state employees who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6, as specified.
end insertbegin insert(6) PEMHCA establishes the Public Employees’ Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. PEMHCA establishes the Annuitants’ Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding of health care coverage for annuitants, including administrative costs. PEMHCA defines “prefunding” for these purposes. Existing law requires the state and employees of State Bargaining Unit 9 or 10 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019, and prescribes schedules of contribution percentages in this regard.
end insertbegin insertThis bill would require the state and employees of State Bargaining Unit 6 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2018, and would prescribe a schedule of contribution percentages in this regard, with the contributions to be deposited in the Annuitants’ Health Care Coverage Fund. By depositing new revenue in a continuously appropriated fund, this bill would make an appropriation.
end insertbegin insert(7) Existing law, the State Employees’ Dental Care Act, authorizes the state to enter into contracts, upon negotiations with employee organizations, with carriers for dental care plans for employees, annuitants, and eligible family members. Existing law permits these plans to include premiums to be paid by employees and annuitants and also authorizes the plans to be self-funded if an employer determines it to be cost effective. Existing law prohibits specified employees from receiving an employer contribution for these benefits for annuitants unless the person is credited with 10 or more years of state service.
end insertbegin insertThis bill would prohibit state employees, as specified, who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by State Bargaining Unit 6 from receiving an employer contribution for dental benefits, as described above, for annuitants unless the person is credited with 15 or more years of state service. The bill would prescribe the percentage of the employer contribution payable for these dental benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
end insertbegin insert(8) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
end insertThis bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.
end deleteVote: majority.
Appropriation: begin deleteno end deletebegin insertyesend insert.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares that the
2purpose of this act is to approve the agreement entered into by the
3state employer and State Bargaining Unit 6 pursuant to Section
43517.5 of the Government Code.
The provisions of the memorandum of understanding
6prepared pursuant to Section 3517.5 of the Government Code and
7entered into by the state employer and State Bargaining Unit 6,
8dated March 15, 2016, and that require the expenditure of funds,
9are hereby approved for the purposes of subdivision (b) of Section
103517.6 of the Government Code.
The provisions of the memorandum of understanding
12approved in Section 2 of this act that require the expenditure of
13funds shall not take effect unless funds for these provisions are
14specifically appropriated by the Legislature. If funds for these
15provisions are not specifically appropriated by the Legislature,
16either the state employer or the affected employee organization
17may reopen negotiations on all or part of the memorandum of
18understanding.
Notwithstanding Section 3517.6 of the Government
20Code, the provisions of the memorandum of understanding included
21in Section 2 of this act that require the expenditure of funds shall
22become effective even if the provisions of the memorandum of
23understanding are approved by the Legislature in legislation other
24than the annual Budget Act.
The sum of thirty-one million eight hundred sixty-nine
26thousand dollars ($31,869,000) is hereby appropriated for State
27Bargaining Unit 6 for expenditure in the 2015-16 fiscal year in
28augmentation of, and for the purpose of, state employee
29compensation, as provided in Items 9800-001-0001,
309800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget
31Act of 2015 (Chapter 10 of the Statutes of 2015), in accordance
32with the following schedule:
33
(a) Thirty-one million six hundred eighty-seven thousand dollars
34($31,687,000) from the General Fund in
augmentation of Item
359800-001-0001.
36
(b) One hundred twenty-two thousand dollars ($122,000) from
37unallocated special funds in augmentation of Item 9800-001-0494.
P6 1
(c) Sixty thousand dollars ($60,000) from other unallocated
2nongovernmental cost funds in augmentation of Item
39800-001-0988.
begin insertSection 19829.9842 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
5to read:end insert
(a) Notwithstanding Section 13340, for the
72016-17 fiscal year, if the Budget Act of 2016 is not enacted by
8July 1, 2016, for the memorandum of understanding entered into
9between the state employer and State Bargaining Unit 6 (effective
10July 3, 2015, to July 2, 2018, inclusive) there is hereby
11continuously appropriated to the Controller from the General
12Fund, unallocated special funds, including, but not limited to,
13federal funds and unallocated nongovernmental cost funds, and
14any other fund from which state employees are compensated, the
15amount necessary for the payment of compensation and employee
16benefits to state employees covered by the above memorandum of
17understanding until the Budget Act of 2016 is enacted. The
18Controller may expend an amount no greater than necessary to
19enable the Controller
to compensate state employees covered by
20the above memorandum of understanding for work performed
21between July 1, 2016, of the 2016-17 fiscal year and the enactment
22of the Budget Act of 2016.
23
(b) If the memorandum of understanding entered into between
24the state employer and State Bargaining Unit 6 (effective July 3,
252015, to July 2, 2018, inclusive) is in effect and approved by the
26Legislature, the compensation and contribution for employee
27benefits for state employees represented by this bargaining unit
28shall be at a rate consistent with the applicable memorandum of
29understanding referenced above.
30
(c) Expenditures related to any warrant drawn pursuant to
31subdivision (a) are not augmentations to the expenditure authority
32of a department. Upon the enactment of the Budget Act of 2016,
33these expenditures shall be subsumed by the expenditure authority
34approved in the Budget Act of
2016 for each affected department.
35
(d) This section shall only apply to an employee covered by the
36term of the State Bargaining Unit 6 (effective July 3, 2015, to July
372, 2018, inclusive) memorandum of understanding.
38Notwithstanding Section 3517.8, this section shall not apply after
39the term of the memorandum of understanding has expired. For
P7 1purposes of this section, the memorandum of understanding for
2State Bargaining Unit 6 expires on July 2, 2018.
begin insertSection 19829.9843 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
4to read:end insert
(a) Notwithstanding Section 13340, for the
62017-18 fiscal year, if the Budget Act of 2017 is not enacted by
7July 1, 2017, for the memorandum of understanding entered into
8between the state employer and State Bargaining Unit 6 (effective
9July 3, 2015, to July 2, 2018, inclusive) there is hereby
10continuously appropriated to the Controller from the General
11Fund, unallocated special funds, including, but not limited to,
12federal funds and unallocated nongovernmental cost funds, and
13any other fund from which state employees are compensated, the
14amount necessary for the payment of compensation and employee
15benefits to state employees covered by the above memorandum of
16understanding until the Budget Act of 2017 is enacted. The
17Controller may expend an amount no greater than necessary to
18enable the Controller
to compensate state employees covered by
19the above memorandum of understanding for work performed
20between July 1, 2017, of the 2017-18 fiscal year and the enactment
21of the Budget Act of 2017.
22
(b) If the memorandum of understanding entered into between
23the state employer and State Bargaining Unit 6 (effective July 3,
242015, to July 2, 2018, inclusive) is in effect and approved by the
25Legislature, the compensation and contribution for employee
26benefits for state employees represented by this bargaining unit
27shall be at a rate consistent with the applicable memorandum of
28understanding referenced above.
29
(c) Expenditures related to any warrant drawn pursuant to
30subdivision (a) are not augmentations to the expenditure authority
31of a department. Upon the enactment of the Budget Act of 2017,
32these expenditures shall be subsumed by the expenditure authority
33approved in the Budget Act of
2017 for each affected department.
34
(d) This section shall only apply to an employee covered by the
35term of the State Bargaining Unit 6 (effective July 3, 2015, to July
362, 2018, inclusive) memorandum of understanding.
37Notwithstanding Section 3517.8, this section shall not apply after
38the term of the memorandum of understanding has expired. For
39purposes of this section, the memorandum of understanding for
40State Bargaining Unit 6 expires on July 2, 2018.
begin insertSection 22871.3 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert
(a) The employer contribution for each annuitant
4enrolled in a basic plan shall be an amount equal to 80 percent of
5the weighted average of the health benefit plan premiums for an
6employee or annuitant enrolled for self-alone, during the benefit
7year to which the formula is applied, for the four health benefit
8plans that had the largest active state civil service enrollment,
9excluding family members, during the previous benefit year. For
10each annuitant with enrolled family members, the employer
11contribution shall be an amount equal to 80 percent of the weighted
12average of the additional premiums required for enrollment of
13those family members, during the benefit year to which the formula
14is applied, in the four health benefit plans that had the largest active
15state civil service enrollment, excluding family members, during
16
the previous benefit year.
17(b) The employer contribution for each annuitant enrolled in a
18Medicare health benefit plan in accordance with Section 22844
19shall be an amount equal to 80 percent of the weighted average of
20the health benefit plan premiums for an annuitant enrolled in a
21Medicare health benefit plan for self-alone, during the benefit year
22to which the formula is applied, for the four Medicare health benefit
23plans that had the largest state annuitant enrollment, excluding
24family members, during the previous benefit year. For each
25annuitant with enrolled family members, the employer contribution
26shall be an amount equal to 80 percent of the weighted average of
27the additional premiums required for enrollment of those family
28members, during the benefit year to which the formula is applied,
29in the four Medicare health benefit plans that had the largest state
30annuitant enrollment, excluding family members, during the
31previous benefit year.
If the annuitant is eligible for Medicare Part
32A, with or without cost, and Medicare Part B, regardless of whether
33the annuitant is actually enrolled in Medicare Part A or Part B, the
34employer contribution shall not exceed the amount calculated
35under this subdivision.
36
(c) This section applies to:
37(c)
end delete
38begin insert(1)end insert begin delete This section applies to aend deletebegin insert Aend insert state employee who is first
39employed by the state and becomes a state member of the system
P9 1on or after January 1, 2016, and who is represented by State
2Bargaining Unit 9 or 10.
3(d)
end delete
4begin insert(2)end insert begin delete This section shall also apply to aend deletebegin insert Aend insert state employee related
5to State Bargaining Unit 9 or 10 who is excepted from the
6definition of “state employee” in subdivision (c) of Section 3513
7and first employed by the state and becomes a state member of the
8system on or after January 1, 2016.
9
(3) A state employee represented by State Bargaining Unit 6
10who is first employed by the state and becomes a state member of
11the system on or after January 1, 2017.
12
(4) A state employee related to State Bargaining Unit 6 who is
13excepted from the
definition of “state employee” in subdivision
14(c) of Section 3513 and first employed by the state and becomes
15a state member of the system on or after January 1, 2017.
16(e)
end delete
17begin insert(d)end insert If the provisions of this section are in conflict with the
18provisions of a memorandum of understanding reached pursuant
19to Section 3517.5 or Chapter 12 (commencing with Section 3560)
20of Division 4 of Title 1, the memorandum of understanding shall
21be controlling without further legislative action, except that if those
22provisions require the expenditure of funds, the provisions may
23not become effective unless approved by the Legislature.
begin insertSection 22874.3 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
25read:end insert
(a) Notwithstanding Sections 22870, 22871, 22873,
27and 22874 a state employee, defined by subdivision (c) of Section
283513, who is first employed by the state and becomes a state
29member of the system on or after January 1, 2017, and who is
30represented by State Bargaining Unit 6, shall not receive any
31portion of the employer contribution payable for annuitants unless
32the person is credited with 15 years of state service at the time of
33retirement.
34
(b) The percentage of the employer contribution payable for
35postretirement health benefits for an employee subject to this
36section shall be based on the completed years of credited state
37service at retirement as shown in the following table:
| begin insert
Years of Service Contribution end insert | begin insert
Credited Years Percentage |
| begin insert
15 end insert | begin insert
50 end insert |
| begin insert
16 end insert | begin insert
55 end insert |
| begin insert
17 end insert | begin insert
60 end insert |
| begin insert
18 end insert | begin insert
65 end insert |
| begin insert
19 end insert | begin insert
70 end insert |
| begin insert
20 end insert | begin insert
75 end insert |
| begin insert
21 end insert | begin insert
80 end insert |
| begin insert
22 end insert | begin insert
85 end insert |
| begin insert
23 end insert | begin insert
90 end insert |
| begin insert
24 end insert | begin insert
95 end insert |
| begin insert
25 or more end insert | begin insert
100 end insert |
13
(c) This section shall apply only to state employees that retire
14for service. For purposes of this section, “state service” means
15
service rendered as an employee of the state or an appointed or
16elected officer of the state for compensation.
17
(d) This section does not apply to:
18
(1) Former state employees previously employed before January
191, 2017, who return to state employment on or after January 1,
202017.
21
(2) State employees hired prior to January 1, 2017, who become
22subject to representation by State Bargaining Unit 6 on or after
23January 1, 2017.
24
(3) State employees on an approved leave of absence employed
25before January 1, 2017, who return to active employment on or
26after January 1, 2017.
27
(4) State employees hired after January 1, 2017, who are first
28represented by a State Bargaining Unit other than Bargaining
29Unit
6, who later become represented by State Bargaining Unit
306.
31
(e) Notwithstanding Section 22875, this section shall also apply
32to a related state employee who is excepted from the definition of
33“state employee” in subdivision (c) of Section 3513 and is first
34employed by the state and becomes a state member of the system
35on or after January 1, 2017.
begin insertSection 22875.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
37to read:end insert
(a) If the state has assumed from a public agency a
39function and the related personnel, service rendered by that
40personnel for compensation as employees or appointed or elective
P11 1officers of that public agency may not be credited as state service
2for the purposes of Sectionbegin delete 22874end deletebegin insert 22874, 22874.1, 22874.2,
322874.3,end insert orbegin delete 22875,end deletebegin insert 22875end insert unless both of the following apply:
4(1) The former employer has paid or agreed to pay the state the
5amount actuarially determined to equal the cost for any employee
6health benefits that were vested at the time that the function and
7the related personnel were assumed by the state.
8(2) The Department of Finance finds that the contract contains
9a benefit factor sufficient to reimburse the state for the amount
10necessary to fully compensate for the postretirement health benefit
11costs of those personnel.
12(b) For noncontracting public agencies, the state agency that
13has assumed the function shall certify the completed years of public
14agency service to
be credited to the employee as state service credit
15under Sectionbegin delete 22874end deletebegin insert 22874, 22874.1, 22874.2, 22874.3,end insert or 22875.
begin insertSection 22879 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
17to read:end insert
(a) The board shall pay monthly to an employee or
19annuitant who is enrolled in, or whose family member is enrolled
20in, a Medicare health benefit plan under this part the amount of
21the Medicare Part B premiums, exclusive of penalties, except as
22provided in Section 22831. This payment may not exceed the
23difference between the maximum employer contribution and the
24amount contributed by the employer toward the cost of premiums
25for the health benefit plan in which the employee or annuitant and
26his or her family members are enrolled. No payment may be made
27in any month if the difference is less than one dollar ($1).
28(b) This section shall be applicable only to state employees,
29annuitants who retired while state employees, and the family
30members of those persons.
31(c) With respect to an annuitant, the board shall pay to the
32annuitant the amount required by this section from the same source
33from which his or her allowance is paid. Those amounts are hereby
34appropriated monthly from the General Fund to reimburse the
35board for those payments.
36(d) There is hereby appropriated from the appropriate funds the
37amounts required by this section to be paid to active state
38employees.
39(e) This section does not apply to:
P12 1(1) A state employee who is first employed by the state and
2becomes a state member of the system on or after January 1, 2016,
3and who is represented by State Bargaining Unit 9 or 10.
4(2) A state employee related to State Bargaining Unit 9 or 10
5who
is excepted from the definition of “state employee” in
6subdivision (c) of Section 3513 and is first employed by the state
7and becomes a state member of the system on or after January 1,
82016.
9
(3) A state employee who is first employed by the state and
10becomes a state member of the system on or after January 1, 2017,
11and who is represented by State Bargaining Unit 6.
12
(4) A state employee related to State Bargaining Unit 6 who is
13excepted from the definition of “state employee” in subdivision
14(c) of Section 3513 and is first employed by the state and becomes
15a state member of the system on or after January 1, 2017.
begin insertSection 22944.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
17to read:end insert
(a) begin insert (1)end insertbegin insert end insert The state and employees in State Bargaining
19Unit 9 or 10 shall prefund retiree health care, with the goal of
20reaching a 50-percent cost sharing of actuarially determined normal
21costs for both employer and employees by July 1, 2019.
22
(2) The state and employees in State Bargaining Unit 6 shall
23prefund retiree health care, with the goal of reaching a 50-percent
24cost sharing of actuarially determined normal costs for both
25employer and
employees by July 1, 2018.
26(b) (1) The employees in State Bargaining Unit 9 shall make
27contributions to prefund retiree health care based on the following
28schedule, and the state shall make a matching contribution:
29(A) Effective July 1, 2017, 0.5 percent of pensionable
30compensation.
31(B) Effective July 1, 2018, an additional 0.5 percent for a total
32employee contribution of 1.0 percent of pensionable compensation.
33(C) Effective July 1, 2019, an additional 1.0 percent for a total
34employee contribution of 2.0 percent of pensionable compensation.
35(2) The employees in State Bargaining Unit 10 shall make
36contributions to prefund retiree health care
based on the following
37schedule, and the state shall make a matching contribution:
38(A) Effective July 1, 2017, 0.7 percent of pensionable
39compensation.
P13 1(B) Effective July 1, 2018, an additional 0.7 percent for a total
2employee contribution of 1.4 percent of pensionable compensation.
3(C) Effective July 1, 2019, an additional 1.4 percent for a total
4employee contribution of 2.8 percent of pensionable compensation.
5
(3) The employees in State Bargaining Unit 6 shall make
6contributions to prefund retiree health care based on the following
7schedule, and the state shall make a matching contribution:
8
(A) Effective July 1, 2016, 1.3 percent of pensionable
9compensation.
10
(B) Effective July 1, 2017, an additional 1.3 percent for a total
11employee contribution of 2.6 percent of pensionable compensation.
12
(C) Effective July 1, 2018, an additional 1.4 percent for a total
13employee contribution of 4.0 percent of pensionable compensation.
14(c) This section only applies to employees in State Bargaining
15Unitbegin delete 9end deletebegin insert 6, 9,end insert or 10 who are eligible for health benefits, including
16permanent intermittent employees.
17(d) Contributions paid pursuant to this section shall be deposited
18in the Annuitants’ Health Care Coverage Fund and shall not be
19refundable under any circumstances to an employee in State
20Bargaining Unitbegin delete 9end deletebegin insert 6, 9,end insert or 10 or his or her beneficiary or survivor.
21(e) If the provisions of this section are in conflict with the
22provisions of a memorandum of understanding reached pursuant
23to Section 3517.5, the memorandum of understanding shall be
24controlling without further legislative action, except that if those
25provisions of a memorandum of understanding require the
26expenditure of funds, the provisions shall not become effective
27unless approved by the Legislature in the annual Budget Act.
28(f) This section shall also apply to a state employee related to
29State Bargaining Unitbegin delete 9end deletebegin insert 6, 9,end insert or 10 who is excepted from the
30definition of “state employee” in subdivision (c) of Section 3513.
begin insertSection 22958.1 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
32to read:end insert
(a) Notwithstanding Sections 22953, 22957 and
3422958, the following employees shall not receive any portion of
35the employer contribution payable for annuitants unless the person
36is credited with 15 or more years of state service, as defined by
37this section, at the time of retirement:
38
(1) A state employee, as defined by subdivision (c) of Section
393513, who is first employed by the state and becomes a state
P14 1member of the system on or after January 1, 2017 and is
2represented by State Bargaining Unit 6.
3
(2) A state employee related to State Bargaining Unit 6 who is
4excepted from the definition of “state employee” in subdivision
5(c) of Section 3513 and is first employed by the state
and becomes
6a state member of the system on or after January 1, 2017.
7
(b) The percentage of the employer contribution payable for
8postretirement dental care benefits for an employee subject to this
9section shall be based on the funding provision of the plan and
10the completed years of credited state service at retirement as shown
11in the following table:
| begin insert
Years of Service Contribution end insert | begin insert
Credited Years Percentage |
| begin insert
15 end insert | begin insert
50 end insert |
| begin insert
16 end insert | begin insert
55 end insert |
| begin insert
17 end insert | begin insert
60 end insert |
| begin insert
18 end insert | begin insert
65 end insert |
| begin insert
19 end insert | begin insert
70 end insert |
| begin insert
20 end insert | begin insert
75 end insert |
| begin insert
21 end insert | begin insert
80 end insert |
| begin insert
22 end insert | begin insert
85 end insert |
| begin insert
23 end insert | begin insert
90 end insert |
| begin insert
24 end insert | begin insert
95 end insert |
| begin insert
25 or more end insert | begin insert
100 end insert |
27
(c) This section shall apply only to state employees that retire
28for service. For purposes of this section, “state service” means
29service rendered as an employee of the state or an appointed or
30elected officer of the state for compensation.
31
(d) This section does not apply to:
32
(1) Former state employees previously employed before January
331, 2017, who return to state employment on or after January 1,
342017.
35
(2) State employees hired prior to January 1, 2017, who become
36subject to representation by State Bargaining
Unit 6 on or after
37January 1, 2017.
38
(3) State employees on an approved leave of absence employed
39before January 1, 2017, who return to active employment on or
40after January 1, 2017.
P15 1
(4) State employees hired after January 1, 2017, who are first
2represented by a State Bargaining Unit other than Bargaining
3Unit 6, who later become represented by State Bargaining Unit
46.
5
(e) In those cases where the state has assumed from a public
6agency a function and the related personnel, service rendered by
7that personnel for compensation as employees or appointed or
8elected officers of that public agency may not be credited as state
9service for the purposes of this section unless the former employer
10has paid or agreed to pay the state the amount actuarially
11determined to equal the cost for any employee dental benefits that
12were
vested at the time that the function and the related personnel
13were assumed by the state, and the Department of Finance finds
14that the contract contains a benefit factor sufficient to reimburse
15the state for the amount necessary to fully compensate for the
16postretirement dental benefit costs of those personnel. For
17noncontracting public agencies, the state agency that has assumed
18the function shall certify the completed years of public agency
19service to be credited to the employee as state service credit under
20this section.
This act is a bill providing for appropriations related
22to the Budget Bill within the meaning of subdivision (e) of Section
2312 of Article IV of the California Constitution, has been identified
24as related to the budget in the Budget Bill, and shall take effect
25immediately.
It is the intent of the Legislature to enact statutory
27changes relating to the Budget Act of 2015.
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