BILL ANALYSIS Ó
SB 98
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(Without Reference to File)
SENATE THIRD READING
SB
98 (Committee on Budget and Fiscal Review)
As Amended June 16, 2015
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
SENATE VOTE: Vote not relevant
SUMMARY: Includes a statutory provision related to employee
compensation necessary to enact the 2015 Budget Act.
Specifically, this bill:
1)Repeals Government Code Section 12439 related to vacant
positions.
2)States that "family member" does not include a former spouse
or former domestic partner of an employee or annuitant.
3)Expands the definition of prefunding to add periodic payments
by an employee to fund or partially fund the "normal costs" of
postemployment health care benefits.
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4)Requires an employing office to maintain the verifying
documentation in the employee or annuitant's official
personnel or member file.
5)Requires the employing office of the state employee or state
annuitant to substantiate eligibility for family members as
follows:
a) At least once every three year for spouses, domestic
partners, children and stepchildren, domestic partner
children
b) At least annually for other children for whom the state
employee or state annuitant has assumed a parent-child
relationship
6)States that the employing office of a state annuitant is the
Public Employee's Retirement System (CalPERS).
7)Prohibits CalPERS from granting any further exemptions after
July 1, 2015, to the rule against enrolling employees,
annuitants, and their family members who are eligible for
Medicare in a basic health benefit plan.
8)Requires CalPERS to provide an initial estimate of proposed
changes and costs in writing to the Joint Legislative Budget
Committee, chairpersons of the Public Employees' Retirement
System's budget, the State Controller, the Trustees of the
California State University, the Department of Human
Resources, the Director of Finance, and the Legislative
analyst not later than 30 days prior to the approval.
9)Requires the CalPERS Board to report various items to the
Legislature and the Director of Finance annually regarding the
health benefits program.
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10)Prohibits the funds in the designated state subaccounts of
the fund, or a successor fund, that are derived from
investment income from being used to pay benefits for state
annuitants until the earlier of:
a) The date the funded ratio of the designated state
subaccount reaches at least 100% as determined in the
employer's postemployment benefits; or
b) July 1, 2046.
11)Defines "designed state subaccount" as a separate account
maintained within the fund to identify prefunding
contributions and assets attributable to a specified state
collective bargaining unit or other state entity.
12)Does not prohibit an alternative funding strategy agreed to
in a written memorandum of understanding.
FISCAL EFFECT: Statutory changes contained in this bill related
to state costs are consistent with the 2015-16 budget package.
COMMENTS: This trailer bill language provides the necessary
statutory references to enact the 2015-16 Budget related to
employee compensation.
Analysis Prepared by:
Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0000976
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