BILL NUMBER: SB 834 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 29, 2016
AMENDED IN ASSEMBLY AUGUST 19, 2016
AMENDED IN ASSEMBLY JUNE 12, 2016
AMENDED IN ASSEMBLY MAY 25, 2016
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 7, 2016
An act to amend Sections 19829.9845, 19829.9846, 20397,
20682, 22871.3, 22874.3, 22879, 22944.5, and 22958.1 of the
Government Code, relating to state employment, and making an
appropriation therefor, to take effect immediately, bill related to
the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 834, as amended, Committee on Budget and Fiscal Review. State
employment: memorandum of understanding: Bargaining Unit 7.
2.
(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.
This bill would approve provisions of a memorandum of
understanding entered into between the state employer and State
Bargaining Unit 7, the California Statewide Law Enforcement
Association, 2, California Attorneys, Administrative
Law Judges and Hearing Officers in State Employment, 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.
This 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 authorize 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 $38,611,000
$32,558,000 in augmentation of certain items of the Budget Act
of 2016, according to a specified schedule, for State Bargaining Unit
7 2 employee compensation for
expenditure in the 2016-17 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 memorandum of
understanding described above if the Budget Act is not enacted on or
before July 1 in the 2017-18 or 2018-19 fiscal years, as specified.
(2) Existing law, the Public Employees' Retirement Law, creates
the Public Employees' Retirement System (PERS) for the purpose of
providing pension benefits to state employees and employees of
contracting agencies and prescribes the rights and duties of members
of the system and their beneficiaries. PERS provides a defined
benefit to members of the program, based on final compensation,
credited service, and age at retirement, subject to certain
variations. Existing law prescribes the officers and employees of the
Assembly and the Senate, including a sergeant at arms for each
house. Existing law classifies the sergeants at arms of the houses as
peace officers for purposes of making arrests and enforcing the law.
Existing law creates different membership categories in PERS for the
purpose of prescribing benefits and contributions, including the
classification of state peace officer/firefighter or member. Existing
law generally includes the sergeants at arms of the Assembly and the
Senate within the state peace officer/firefighter member
classification, but excepts the chief sergeants at arms from this
classification. Existing law provides that state peace
officer/firefighter members of PERS pay greater rates of contribution
and receive better benefits than miscellaneous members of the
system. Existing law creates the Public Employees' Retirement Fund as
a trust fund to be expended only for purposes related to the system
and its administration, as specified, and provides that the fund is
continuously appropriated to these ends.
This bill would include the Chief Sergeant at Arms of the Assembly
within the state peace officer/firefighter member classification. By
increasing moneys deposited in a continuously appropriated fund,
this bill would make an appropriation.
(3) Existing law creates the state miscellaneous and the state
industrial membership categories in PERS. Existing law excepts
certain employees from the definition of state employee for the
purposes of collective bargaining regarding the terms and conditions
of employment. Existing law prescribes the pension contribution
percentages for state miscellaneous and state industrial members of
PERS who are excepted from the definition of state employee for the
purposes of collective bargaining and who are in job classifications
that are related to State Bargaining Unit 2. In this regard, existing
law prescribes a normal rate of pension contribution for these
employee of 9% of compensation in excess of a specified amount for
these employees whose service is not included in the federal social
security system and 8% of compensation in excess of a specified
amount for these employees whose service is included in the federal
social security system.
This bill would increase the pension contribution percentages for
state miscellaneous and state industrial members of PERS excepted
from the definition of state employee and related to State Bargaining
Unit 2, as described above, to 10% and 9%, as specified. By
increasing moneys deposited in a continuously appropriated fund, this
bill would make an appropriation.
(2)
(4) 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.
This 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 7, 2,
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.
(3)
(5) 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.
This 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 7,
2, 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.
(4)
(6) 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 specified
dates and are represented by specified state bargaining units.
This 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 7, 2, as
specified.
(5)
(7) 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 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, 10, or 12 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.
This bill would require the state and employees of State
Bargaining Unit 7 2 to prefund retiree
health care with the goal of reaching a 50% cost sharing of normal
costs by July 1, 2019, 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.
(6)
(8) 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 or for other specified employees unless
the person is credited with 15 or more years of state service.
This 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
7 2 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.
(9) This bill would incorporate additional changes to Sections
19829.9845, 19829.9846, 22871.3, 22874.3, 22879, 22944.5, and 22958.1
of the Government Code, proposed by AB 1627, that would become
operative only if AB 1627 and this bill are both chaptered and become
effective on or before January 1, 2017, and this bill is chaptered
last.
(7)
(10) This bill would declare that it is to take effect
immediately as a bill providing for appropriations related to the
Budget Bill.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares that a
purpose of this act is to approve the agreement entered into by the
state employer and State Bargaining Unit 2 pursuant to Section 3517.5
of the Government Code.
SEC. 2. The provisions of the memorandum of
understanding prepared pursuant to Section 3517.5 of the Government
Code and entered into by the state employer and State Bargaining Unit
2, dated August 19, 2016, and that require the expenditure of funds,
are hereby approved for the purposes of subdivision (b) of Section
3517.6 of the Government Code.
SEC. 3. The provisions of the memorandum of
understanding approved in Section 2 of this act that require the
expenditure of funds shall not take effect unless funds for these
provisions are specifically appropriated by the Legislature. If funds
for these provisions are not specifically appropriated by the
Legislature, either the state employer or the affected employee
organization may reopen negotiations on all or part of the memorandum
of understanding.
SEC. 4. Notwithstanding Section 3517.6 of the
Government Code, the provisions of the memorandum of understanding
included in Section 2 of this act that require the expenditure of
funds shall become effective even if the provisions of the memorandum
of understanding are approved by the Legislature in legislation
other than the annual Budget Act.
SEC. 5. The sum of thirty-two million five hundred
fifty-eight thousand dollars ($32,558,000) is hereby appropriated for
State Bargaining Unit 2 for expenditure in the 2016-17 fiscal year
in augmentation of, and for the purpose of, state employee
compensation, as provided in Items 9800-001-0001, 9800-001-0494, and
9800-001-0988 of Section 2.00 of the Budget Act of 2016, in
accordance with the following schedule:
(a) Nine million four hundred thirty-two thousand dollars
($9,432,000) from the General Fund in augmentation of Item
9800-001-0001.
(b) Fifteen million four hundred ninety-four thousand dollars
($15,494,000) from unallocated special funds in augmentation of Item
9800-001-0494.
(c) Seven million six hundred thirty-two thousand dollars
($7,632,000) from other unallocated nongovernmental cost funds in
augmentation of Item 9800-001-0988.
SEC. 6. Section 19829.9845 of the
Government Code is amended to read:
19829.9845. (a) Notwithstanding Section 13340, for the 2017-18
fiscal year, if the Budget Act of 2017 is not enacted by July 1,
2017, for the memorandum memoranda of
understanding entered into between the state employer and State
Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019,
inclusive) and State Bargaining Unit 12 (effective July 1,
2015, to July 1, 2019, inclusive) there is hereby continuously
appropriated to the Controller from the General Fund, unallocated
special funds, including, but not limited to, 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 above memorandum memoranda
of understanding until the Budget Act of 2017 is enacted. The
Controller may expend an amount no greater than necessary to enable
the Controller to compensate state employees covered by the above
memorandum memoranda of understanding
for work performed between July 1, 2017, of the 2017-18 fiscal year
and the enactment of the Budget Act of 2017.
(b) If the memorandum memoranda of
understanding entered into between the state employer and State
Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019,
inclusive) and State Bargaining Unit 12 (effective July 1,
2015, to July 1, 2019, inclusive) is are
in effect and approved by the Legislature, the compensation and
contribution for employee benefits for state employees represented
by this these bargaining unit
units shall be at a rate consistent with the
applicable memorandum of understanding referenced above.
(c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2017, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2017 for each affected department.
(d) This section shall only apply to an employee covered by the
term of the State Bargaining Unit 2 (effective July 1, 2016, to
July 1, 2019, inclusive) or State Bargaining Unit 12 (effective
July 1, 2015, to July 1, 2019, inclusive) memorandum of
understanding. Notwithstanding Section 3517.8, this section shall not
apply after the term terms of the
memorandum memoranda of understanding
has have expired. For purposes of this
section, the memorandum memoranda of
understanding for State Bargaining Unit 2 and State
Bargaining Unit 12 expires expire on
July 1, 2019.
SEC. 6.5. Section 19829.9845 of the
Government Code is amended to read:
19829.9845. (a) Notwithstanding Section 13340, for the 2017-18
fiscal year, if the Budget Act of 2017 is not enacted by July 1,
2017, for the memorandum memoranda of
understanding entered into between the state employer and State
Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019,
inclusive), State Bargaining Unit 7 (effective July 2,
2016, to July 1, 2019, inclusive), and State Bargaining Unit 12
(effective July 1, 2015, to July 1, 2019, inclusive) there is hereby
continuously appropriated to the Controller from the General Fund,
unallocated special funds, including, but not limited to, 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 above memorandum memoranda
of understanding until the Budget Act of 2017 is enacted. The
Controller may expend an amount no greater than necessary to enable
the Controller to compensate state employees covered by the above
memorandum memoranda of understanding
for work performed between July 1, 2017, of the 2017-18 fiscal year
and the enactment of the Budget Act of 2017.
(b) If the memorandum memoranda of
understanding entered into between the state employer and State
Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019,
inclusive), State Bargaining Unit 7 (effective July 2,
2016, to July 1, 2019, inclusive), and State Bargaining Unit 12
(effective July 1, 2015, to July 1, 2019, inclusive) is
are in effect and approved by the Legislature,
the compensation and contribution for employee benefits for state
employees represented by this these
bargaining unit units shall be at a
rate consistent with the applicable memorandum of understanding
referenced above.
(c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2017, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2017 for each affected department.
(d) This section shall only apply to an employee covered by the
term of the State Bargaining Unit 2 (effective July 1, 2016, to
July 1, 2019, inclusive), State Bargaining Unit 7 (effective July 2,
2016, to July 1, 2019, inclusive), or State Bargaining Unit 12
(effective July 1, 2015, to July 1, 2019, inclusive) memorandum of
understanding. Notwithstanding Section 3517.8, this section shall not
apply after the term terms of the
memorandum memoranda of understanding
has have expired. For purposes of this
section, the memorandum memoranda of
understanding for State Bargaining Unit 2, State Bargaining Unit
7, and State Bargaining Unit 12 expires
expire on July 1, 2019.
SEC. 7. Section 19829.9846 of the
Government Code is amended to read:
19829.9846. (a) Notwithstanding Section 13340, for the 2018-19
fiscal year, if the Budget Act of 2018 is not enacted by July 1,
2018, for the memorandum memoranda of
understanding entered into between the state employer and State
Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019,
inclusive) and State Bargaining Unit 12 (effective July 1,
2015, to July 1, 2019, inclusive) there is hereby continuously
appropriated to the Controller from the General Fund, unallocated
special funds, including, but not limited to, 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 above memorandum memoranda
of understanding until the Budget Act of 2018 is enacted. The
Controller may expend an amount no greater than necessary to enable
the Controller to compensate state employees covered by the above
memorandum memoranda of understanding
for work performed between July 1, 2018, of the 2018-19 fiscal year
and the enactment of the Budget Act of 2018.
(b) If the memorandum memoranda of
understanding entered into between the state employer and State
Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019,
inclusive) and State Bargaining Unit 12 (effective July 1,
2015, to July 1, 2019, inclusive) is are
in effect and approved by the Legislature, the compensation and
contribution for employee benefits for state employees represented
by this these bargaining unit
units shall be at a rate consistent with the
applicable memorandum of understanding referenced above.
(c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2018, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2018 for each affected department.
(d) This section shall only apply to an employee covered by the
term of the State Bargaining Unit 2 (effective July 1, 2016, to
July 1, 2019, inclusive) or State Bargaining Unit 12 (effective
July 1, 2015, to July 1, 2019, inclusive) memorandum of
understanding. Notwithstanding Section 3517.8, this section shall not
apply after the term terms of the
memorandum memoranda of understanding
has have expired. For purposes of this
section, the memorandum memoranda of
understanding for State Bargaining Unit 2 and State
Bargaining Unit 12 expires expire on
July 1, 2019.
SEC. 7.5. Section 19829.9846 of the
Government Code is amended to read:
19829.9846. (a) Notwithstanding Section 13340, for the 2018-19
fiscal year, if the Budget Act of 2018 is not enacted by July 1,
2018, for the memorandum memoranda of
understanding entered into between the state employer and State
Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019,
inclusive), State Bargaining Unit 7 (effective July 2,
2016, to July 1, 2019, inclusive), and State Bargaining Unit 12
(effective July 1, 2015, to July 1, 2019, inclusive) there is hereby
continuously appropriated to the Controller from the General Fund,
unallocated special funds, including, but not limited to, 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 above memorandum memoranda
of understanding until the Budget Act of 2018 is enacted. The
Controller may expend an amount no greater than necessary to enable
the Controller to compensate state employees covered by the above
memorandum memoranda of understanding
for work performed between July 1, 2018, of the 2018-19 fiscal year
and the enactment of the Budget Act of 2018.
(b) If the memorandum memoranda of
understanding entered into between the state employer and State
Bargaining Unit 2 (effective July 1, 2016, to July 1, 2019,
inclusive), State Bargaining Unit 7 (effective July 2,
2016, to July 1, 2019, inclusive), and State
Bargaining Unit 12 (effective July 1, 2015, to July 1, 2019,
inclusive) is are in effect and
approved by the Legislature, the compensation and contribution for
employee benefits for state employees represented by this
these bargaining unit
units shall be at a rate consistent with the applicable
memorandum of understanding referenced above.
(c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2018, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2018 for each affected department.
(d) This section shall only apply to an employee covered by the
term of the State Bargaining Unit 2 (effective July 1, 2016, to
July 1, 2019, inclusive), State Bargaining Unit 7
(effective July 2, 2016, to July 1, 2019, inclusive), or
State Bargaining Unit 12 (effective July 1, 2015, to July 1,
2019, inclusive) memorandum of understanding. Notwithstanding Section
3517.8, this section shall not apply after the term
terms of the memorandum
memoranda of understanding has have
expired. For purposes of this section, the memorandum
memoranda of understanding for State
Bargaining Unit 2, State Bargaining Unit 7, and State
Bargaining Unit 12 expires expire on
July 1, 2019.
SEC. 8. Section 20397 of the Government
Code is amended to read:
20397. "State peace officer/firefighter member" also includes:
(a) The Sergeants-at-Arms of each house of the Legislature who
have been designated as peace officers in subdivision (a) of Section
830.36 of the Penal Code, excluding the Chief
Sergeant-at-Arms. Sergeant-at-Arms of the Senate.
(b) Bailiffs and security coordinators of the judicial branch who
have been designated as peace officers in subdivision (b) of Section
830.36 of the Penal Code.
A member who is reclassified from state miscellaneous to state
peace officer/firefighter pursuant to this section may make an
irrevocable election in writing to remain subject to the
miscellaneous service retirement benefit and the normal rate of
contribution by filing a notice of the election with the board within
90 days of notification by the board. A member who so elects shall
be subject to the reduced benefit factors specified in Section 21353
or 21354.1, as applicable, only for service included in the federal
system.
SEC. 9. Section 20682 of the
Government Code is amended to read:
20682. Notwithstanding Sections 20677.4, 20677.5, 20677.6,
20677.9, 20683, 20683.1, 20686, and 20687, effective with the
beginning of the pay period following enactment of this section, the
normal rate of contribution for a state employee who is excepted from
the definition of "state employee" in subdivision (c) of Section
3513, and an officer or employee of the executive branch of state
government who is not a member of the civil service shall be the
following:
(a) For state miscellaneous or state industrial members:
(1) Nine percent of the compensation in excess of three hundred
seventeen dollars ($317) per month paid to a member whose service is
not included in the federal system.
(2) Eight percent of compensation in excess of five hundred
thirteen dollars ($513) per month paid to that member whose service
has been included in the federal system.
(b) For Effective with the beginning of
the October 2016 pay period, for state miscellaneous or state
industrial members who are excepted from the definition of "state
employee" in subdivision (c) of Section 3513 and related to State
Bargaining Unit 2:
(1) Nine Ten percent of the
compensation in excess of three hundred seventeen dollars ($317) per
month paid to a member whose service is not included in the federal
system.
(2) Eight Nine percent of
compensation in excess of five hundred thirteen dollars ($513) per
month paid to that member whose service has been included in the
federal system.
(c) State safety members shall be 9 percent of compensation in
excess of three hundred seventeen dollars ($317) per month paid to a
member whose service is not included in the federal system or in
excess of five hundred thirteen dollars ($513) for one whose service
is included in the federal system.
(d) Peace officer/firefighter members shall be 11 percent of
compensation in excess of eight hundred sixty-three dollars ($863)
for state employees who are excepted from the definition of "state
employee" in subdivision (c) of Section 3513 and related to State
Bargaining Unit 6.
(e) Peace officer/firefighter members shall be 11 percent of
compensation in excess of five hundred thirteen dollars ($513) for
state employees who are excepted from the definition of "state
employee" in subdivision (c) of Section 3513 and related to State
Bargaining Unit 7.
SEC. 10. Section 22871.3 of the
Government Code is amended to read:
22871.3. (a) The employer contribution for each annuitant
enrolled in a basic plan shall be an amount equal to 80 percent of
the weighted average of the health benefit plan premiums for an
employee or annuitant enrolled for self-alone, during the benefit
year to which the formula is applied, for the four health benefit
plans that had the largest active state civil service enrollment,
excluding family members, during the previous benefit year. For each
annuitant with enrolled family members, the employer contribution
shall be an amount equal to 80 percent 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, in the four
health benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year.
(b) The employer contribution for each annuitant enrolled in a
Medicare health benefit plan in accordance with Section 22844 shall
be an amount equal to 80 percent of the weighted average of the
health benefit plan premiums for an annuitant enrolled in a Medicare
health benefit plan for self-alone, during the benefit year to which
the formula is applied, for the four Medicare health benefit plans
that had the largest state annuitant enrollment, excluding family
members, during the previous benefit year. For each annuitant with
enrolled family members, the employer contribution shall be an amount
equal to 80 percent 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, in the four Medicare
health benefit plans that had the largest state annuitant enrollment,
excluding family members, during the previous benefit year. If the
annuitant is eligible for Medicare Part A, with or without cost, and
Medicare Part B, regardless of whether the annuitant is actually
enrolled in Medicare Part A or Part B, the employer contribution
shall not exceed the amount calculated under this subdivision.
(c) This section applies to:
(1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016, and
who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and first employed by the state and becomes a
state member of the system on or after January 1, 2016.
(3) A state employee represented by State Bargaining Unit
6 2, 6, or 12 who is first employed by the
state and becomes a state member of the system on or after January 1,
2017.
(4) A state employee related to State Bargaining Unit 6
2, 6, or 12 who is excepted from the definition
of "state employee" in subdivision (c) of Section 3513 and first
employed by the state and becomes a state member of the system on or
after January 1, 2017.
(5) A judicial branch employee who is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
This paragraph does not apply to a judge who is subject to Chapter
11 (commencing with Section 75000) or Chapter 11.5 (commencing with
Section 75500) of Title 8.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
SEC. 10.5. Section 22871.3 of the
Government Code is amended to read:
22871.3. (a) The employer contribution for each annuitant
enrolled in a basic plan shall be an amount equal to 80 percent of
the weighted average of the health benefit plan premiums for an
employee or annuitant enrolled for self-alone, during the benefit
year to which the formula is applied, for the four health benefit
plans that had the largest active state civil service enrollment,
excluding family members, during the previous benefit year. For each
annuitant with enrolled family members, the employer contribution
shall be an amount equal to 80 percent 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, in the four
health benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year.
(b) The employer contribution for each annuitant enrolled in a
Medicare health benefit plan in accordance with Section 22844 shall
be an amount equal to 80 percent of the weighted average of the
health benefit plan premiums for an annuitant enrolled in a Medicare
health benefit plan for self-alone, during the benefit year to which
the formula is applied, for the four Medicare health benefit plans
that had the largest state annuitant enrollment, excluding family
members, during the previous benefit year. For each annuitant with
enrolled family members, the employer contribution shall be an amount
equal to 80 percent 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, in the four Medicare
health benefit plans that had the largest state annuitant enrollment,
excluding family members, during the previous benefit year. If the
annuitant is eligible for Medicare Part A, with or without cost, and
Medicare Part B, regardless of whether the annuitant is actually
enrolled in Medicare Part A or Part B, the employer contribution
shall not exceed the amount calculated under this subdivision.
(c) This section applies to:
(1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016, and
who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and first employed by the state and becomes a
state member of the system on or after January 1, 2016.
(3) A state employee represented by State Bargaining Unit
6 2, 6, 7, or 12 who is first employed by the
state and becomes a state member of the system on or after January 1,
2017.
(4) A state employee related to State Bargaining Unit 6
2, 6, 7, or 12 who is excepted from the
definition of "state employee" in subdivision (c) of Section 3513 and
first employed by the state and becomes a state member of the system
on or after January 1, 2017.
(5) A judicial branch employee who is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
This paragraph does not apply to a judge who is subject to Chapter
11 (commencing with Section 75000) or Chapter 11.5 (commencing with
Section 75500) of Title 8.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
SEC. 11. Section 22874.3 of the
Government Code is amended to read:
22874.3. (a) Notwithstanding Sections 22870, 22871, 22873, and
22874 22874, a state employee, defined
by subdivision (c) of Section 3513, who is first employed by the
state and becomes a state member of the system on or after January 1,
2017, and who is represented by State Bargaining Unit 6,
2 or 6 shall not receive any portion of the
employer contribution payable for annuitants unless the person is
credited with 15 years of state service at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table:
Years of Service Credited Years
Contribution Percentage
of Employer Contribution
Credited Years Percentage of Employer
of Service Contribution
15...................... 50
16...................... 55
17...................... 60
18...................... 65
19...................... 70
20...................... 75
21...................... 80
22...................... 85
23...................... 90
24...................... 95
25 or more.............. 100
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed before January 1,
2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become
subject to representation by State Bargaining Unit 2 or 6
on or after January 1, 2017.
(3) State employees on an approved leave of absence employed
before January 1, 2017, who return to active employment on or after
January 1, 2017.
(4) State employees hired after January 1, 2017, who are first
represented by a State Bargaining Unit other than Bargaining Unit
2 or 6, who later become represented by State Bargaining
Unit 6.
(e) Notwithstanding Section 22875, this section shall also apply
to a related state employee who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513 and is first
employed by the state and becomes a state member of the system on or
after January 1, 2017.
SEC. 11.5. Section 22874.3 of the
Government Code is amended to read:
22874.3. (a) Notwithstanding Sections 22870, 22871, 22873, and
22874 22874, a state employee, defined
by subdivision (c) of Section 3513, who is first employed by the
state and becomes a state member of the system on or after January 1,
2017, and who is represented by State Bargaining Unit 6,
2, 6, or 7 shall not receive any portion of the
employer contribution payable for annuitants unless the person is
credited with 15 years of state service at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table:
Years of Service Credited Years
Contribution Percentage
of Employer Contribution
Credited Years Percentage of Employer
of Service Contribution
15...................... 50
16...................... 55
17...................... 60
18...................... 65
19...................... 70
20...................... 75
21...................... 80
22...................... 85
23...................... 90
24...................... 95
25 or more.............. 100
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed before January 1,
2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become
subject to representation by State Bargaining Unit 6
2, 6, or 7 on or after January 1, 2017.
(3) State employees on an approved leave of absence employed
before January 1, 2017, who return to active employment on or after
January 1, 2017.
(4) State employees hired after January 1, 2017, who are first
represented by a State Bargaining Unit other than Bargaining Unit
6, 2, 6, or 7, who later become
represented by State Bargaining Unit 6. 2, 6,
or 7.
(e) Notwithstanding Section 22875, this section shall also apply
to a related state employee who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513 and is first
employed by the state and becomes a state member of the system on or
after January 1, 2017.
SEC. 12. Section 22879 of the
Government Code is amended to read:
22879. (a) The board shall pay monthly to an employee or
annuitant who is enrolled in, or whose family member is enrolled in,
a Medicare health benefit plan under this part the amount of the
Medicare Part B premiums, exclusive of penalties, except as provided
in Section 22831. This payment may not exceed 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. No payment may be made in any month if the difference is
less than one dollar ($1).
(b) This section shall be applicable only to state employees,
annuitants who retired while state employees, and the family members
of those persons.
(c) With respect to an annuitant, the board shall pay to the
annuitant the amount required by this section from the same source
from which his or her allowance is paid. Those amounts are hereby
appropriated monthly from the General Fund to reimburse the board for
those payments.
(d) There is hereby appropriated from the appropriate funds the
amounts required by this section to be paid to active state
employees.
(e) This section does not apply to:
(1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016, and
who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and is first employed by the state and becomes a
state member of the system on or after January 1, 2016.
(3) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2017, and
who is represented by State Bargaining Unit 6
2, 6, or 12.
(4) A state employee related to State Bargaining Unit 6
2, 6, or 12 who is excepted from the definition
of "state employee" in subdivision (c) of Section 3513 and is first
employed by the state and becomes a state member of the system on or
after January 1, 2017.
(5) A judicial branch employee who is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
This paragraph does not apply to a judge who is subject to Chapter
11 (commencing with Section 75000) or Chapter 11.5 (commencing with
Section 75500) of Title 8.
SEC. 12.5. Section 22879 of the
Government Code is amended to read:
22879. (a) The board shall pay monthly to an employee or
annuitant who is enrolled in, or whose family member is enrolled in,
a Medicare health benefit plan under this part the amount of the
Medicare Part B premiums, exclusive of penalties, except as provided
in Section 22831. This payment may not exceed 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. No payment may be made in any month if the difference is
less than one dollar ($1).
(b) This section shall be applicable only to state employees,
annuitants who retired while state employees, and the family members
of those persons.
(c) With respect to an annuitant, the board shall pay to the
annuitant the amount required by this section from the same source
from which his or her allowance is paid. Those amounts are hereby
appropriated monthly from the General Fund to reimburse the board for
those payments.
(d) There is hereby appropriated from the appropriate funds the
amounts required by this section to be paid to active state
employees.
(e) This section does not apply to:
(1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016, and
who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and is first employed by the state and becomes a
state member of the system on or after January 1, 2016.
(3) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2017, and
who is represented by State Bargaining Unit 6
2, 6, 7, or 12.
(4) A state employee related to State Bargaining Unit 6
2, 6, 7, or 12 who is excepted from the
definition of "state employee" in subdivision (c) of Section 3513 and
is first employed by the state and becomes a state member of the
system on or after January 1, 2017.
(5) A judicial branch employee who is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
This paragraph does not apply to a judge who is subject to Chapter
11 (commencing with Section 75000) or Chapter 11.5 (commencing with
Section 75500) of Title 8.
SEC. 13. Section 22944.5 of the
Government Code is amended to read:
22944.5. (a) (1) The state and employees in State Bargaining
Unit 2, 9, 10, or 12 shall prefund retiree health care,
with the goal of reaching a 50-percent cost sharing of actuarially
determined normal costs for both employer and employees by July 1,
2019.
(2) The state and employees in State Bargaining Unit 6 shall
prefund retiree health care, with the goal of reaching a 50-percent
cost sharing of actuarially determined normal costs for both employer
and employees by July 1, 2018.
(3) The state and employees in the judicial branch shall prefund
retiree health care, with the goal of reaching a 50-percent cost
sharing of actuarially determined normal costs for both employer and
employees by July 1, 2017.
(b) (1) The employees in State Bargaining Unit 9 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.5 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 0.5 percent for a total
employee contribution of 1.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total
employee contribution of 2.0 percent of pensionable compensation.
(2) The employees in State Bargaining Unit 10 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 0.7 percent for a total
employee contribution of 1.4 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total
employee contribution of 2.8 percent of pensionable compensation.
(3) The employees in State Bargaining Unit 6 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.3 percent of pensionable
compensation.
(B) Effective July 1, 2017, an additional 1.3 percent for a total
employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 4.0 percent of pensionable compensation.
(4) The state employees in the judicial branch shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.5 percent of pensionable
compensation.
(B) Effective July 1, 2017, up to an additional 1.5 percent for a
total employee contribution of up to 3.0 percent of pensionable
compensation. The additional amount shall be determined by the
Director of Finance no later than April 1, 2017, based on the
actuarially determined normal costs identified in the state
valuation.
(C) This paragraph does not apply to a judge who is subject to
Chapter 11 (commencing with Section 75000) or Chapter 11.5
(commencing with Section 75500) of Title 8.
(5) The employees in State Bargaining Unit 12 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.9 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 3.3 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total
employee contribution of 4.6 percent of pensionable compensation.
(6) The employees in State Bargaining Unit 2 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 0.6 percent for a total
employee contribution of 1.3 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 0.7 percent for a total
employee contribution of 2.0 percent of pensionable compensation.
(c) This section only applies to employees who are eligible for
health benefits, including permanent intermittent employees.
(d) Contributions paid pursuant to this section shall be deposited
in the Annuitants' Health Care Coverage Fund and shall not be
refundable under any circumstances to an employee or his or her
beneficiary or survivor.
(e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of a memorandum of understanding require the expenditure of funds,
the provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
(f) This section shall also apply to a state employee related to a
bargaining unit described in subdivision (a) who is excepted from
the definition of "state employee" in subdivision (c) of Section
3513.
SEC. 13.5. Section 22944.5 of the
Government Code is amended to read:
22944.5. (a) (1) The state and employees in State Bargaining
Unit 2, 7, 9, 10, or 12 shall prefund retiree health care,
with the goal of reaching a 50-percent cost sharing of actuarially
determined normal costs for both employer and employees by July 1,
2019.
(2) The state and employees in State Bargaining Unit 6 shall
prefund retiree health care, with the goal of reaching a 50-percent
cost sharing of actuarially determined normal costs for both employer
and employees by July 1, 2018.
(3) The state and employees in the judicial branch shall prefund
retiree health care, with the goal of reaching a 50-percent cost
sharing of actuarially determined normal costs for both employer and
employees by July 1, 2017.
(b) (1) The employees in State Bargaining Unit 9 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.5 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 0.5 percent for a total
employee contribution of 1.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total
employee contribution of 2.0 percent of pensionable compensation.
(2) The employees in State Bargaining Unit 10 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 0.7 percent for a total
employee contribution of 1.4 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total
employee contribution of 2.8 percent of pensionable compensation.
(3) The employees in State Bargaining Unit 6 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.3 percent of pensionable
compensation.
(B) Effective July 1, 2017, an additional 1.3 percent for a total
employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 4.0 percent of pensionable compensation.
(4) The state employees in the judicial branch shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.5 percent of pensionable
compensation.
(B) Effective July 1, 2017, up to an additional 1.5 percent for a
total employee contribution of up to 3.0 percent of pensionable
compensation. The additional amount shall be determined by the
Director of Finance no later than April 1, 2017, based on the
actuarially determined normal costs identified in the state
valuation.
(C) This paragraph does not apply to a judge who is subject to
Chapter 11 (commencing with Section 75000) or Chapter 11.5
(commencing with Section 75500) of Title 8.
(5) The employees in State Bargaining Unit 12 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.9 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 3.3 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total
employee contribution of 4.6 percent of pensionable compensation.
(6) The employees in State Bargaining Unit 2 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 0.6 percent for a total
employee contribution of 1.3 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 0.7 percent for a total
employee contribution of 2.0 percent of pensionable compensation.
(7) The employees in State Bargaining Unit 7 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.3 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 2.7 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total
employee contribution of 4.0 percent of pensionable compensation.
(c) This section only applies to employees who are eligible for
health benefits, including permanent intermittent employees.
(d) Contributions paid pursuant to this section shall be deposited
in the Annuitants' Health Care Coverage Fund and shall not be
refundable under any circumstances to an employee or his or her
beneficiary or survivor.
(e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of a memorandum of understanding require the expenditure of funds,
the provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
(f) This section shall also apply to a state employee related to a
bargaining unit described in subdivision (a) who is excepted from
the definition of "state employee" in subdivision (c) of Section
3513.
SEC. 14. Section 22958.1 of the
Government Code is amended to read:
22958.1. (a) Notwithstanding Sections 22953, 22957, and 22958,
the following employees shall not receive any portion of the employer
contribution payable for annuitants unless the person is credited
with 15 or more years of state service, as defined by this section,
at the time of retirement:
(1) A state employee, as defined by subdivision (c) of Section
3513, who is first employed by the state and becomes a state member
of the system on or after January 1, 2017, and is represented by
State Bargaining Unit 6 2, 6, or 12.
(2) A state employee related to State Bargaining Unit 6
2, 6, or 12 who is excepted from the definition
of "state employee" in subdivision (c) of Section 3513 and is first
employed by the state and becomes a state member of the system on or
after January 1, 2017.
(b) The percentage of the employer contribution payable for
postretirement dental care benefits for an employee subject to this
section shall be based on the funding provision of the plan and the
completed years of credited state service at retirement as shown in
the following table:
Credited Percentage of
Years Employer
of Service Contribution
15...................... 50
16...................... 55
17...................... 60
18...................... 65
19...................... 70
20...................... 75
21...................... 80
22...................... 85
23...................... 90
24...................... 95
25 or more.............. 100
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed prior to January 1,
2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become
subject to representation by State Bargaining Unit 6
2, 6, or 12 on or after January 1, 2017.
(3) State employees on an approved leave of absence employed
before January 1, 2017, who return to active employment on or after
January 1, 2017.
(4) State employees hired after January 1, 2017, who are first
represented by a State Bargaining Unit other than Bargaining Unit
6 2, 6, or 12, who later become
represented by State Bargaining Unit 6 2, 6,
or 12.
(e) In those cases where the state has assumed from a public
agency a function and the related personnel, service rendered by that
personnel for compensation as employees or appointed or elected
officers of that public agency may not be credited as state service
for the purposes of this section unless the former employer has paid
or agreed to pay the state the amount actuarially determined to equal
the cost for any employee dental benefits that were vested at the
time that the function and the related personnel were assumed by the
state, and the Department of Finance finds that the contract contains
a benefit factor sufficient to reimburse the state for the amount
necessary to fully compensate for the postretirement dental benefit
costs of those personnel. For noncontracting public agencies, the
state agency that has assumed the function shall certify the
completed years of public agency service to be credited to the
employee as state service credit under this section.
SEC. 14.5. Section 22958.1 of the
Government Code is amended to read:
22958.1. (a) Notwithstanding Sections 22953, 22957, and 22958,
the following employees shall not receive any portion of the employer
contribution payable for annuitants unless the person is credited
with 15 or more years of state service, as defined by this section,
at the time of retirement:
(1) A state employee, as defined by subdivision (c) of Section
3513, who is first employed by the state and becomes a state member
of the system on or after January 1, 2017, and is represented by
State Bargaining Unit 6 2, 6, 7, or 12.
(2) A state employee related to State Bargaining Unit 6
2, 6, 7, or 12 who is excepted from the
definition of "state employee" in subdivision (c) of Section 3513 and
is first employed by the state and becomes a state member of the
system on or after January 1, 2017.
(b) The percentage of the employer contribution payable for
postretirement dental care benefits for an employee subject to this
section shall be based on the funding provision of the plan and the
completed years of credited state service at retirement as shown in
the following table:
Credited Percentage of
Years Employer
of Service Contribution
15...................... 50
16...................... 55
17...................... 60
18...................... 65
19...................... 70
20...................... 75
21...................... 80
22...................... 85
23...................... 90
24...................... 95
25 or more.............. 100
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed prior to January 1,
2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become
subject to representation by State Bargaining Unit 6
2, 6, 7, or 12 on or after January 1, 2017.
(3) State employees on an approved leave of absence employed
before January 1, 2017, who return to active employment on or after
January 1, 2017.
(4) State employees hired after January 1, 2017, who are first
represented by a State Bargaining Unit other than Bargaining Unit
6 2, 6, 7, or 12, who later become
represented by State Bargaining Unit 6 2, 6,
7, or 12.
(e) In those cases where the state has assumed from a public
agency a function and the related personnel, service rendered by that
personnel for compensation as employees or appointed or elected
officers of that public agency may not be credited as state service
for the purposes of this section
unless the former employer has paid or agreed to pay the state
the amount actuarially determined to equal the cost for any employee
dental benefits that were vested at the time that the function and
the related personnel were assumed by the state, and the Department
of Finance finds that the contract contains a benefit factor
sufficient to reimburse the state for the amount necessary to fully
compensate for the postretirement dental benefit costs of those
personnel. For noncontracting public agencies, the state agency that
has assumed the function shall certify the completed years of public
agency service to be credited to the employee as state service credit
under this section.
SEC. 15. Section 6.5 of this bill incorporates
amendments to Section 19829.9845 of the Government Code proposed by
this bill and Assembly Bill 1627. It shall only become operative if
(1) both bills are enacted and become effective on or before January
1, 2017, (2) each bill amends Section 19829.9845 of the Government
Code, and (3) this bill is enacted after Assembly Bill 1627, in which
case Section 19829.9845 of the Government Code, as amended by
Assembly Bill 1627, shall remain operative only until the operative
date of this bill, at which time Section 6.5 of this bill shall
become operative, and Section 6 of this bill shall not become
operative.
SEC. 16. Section 7.5 of this bill incorporates
amendments to Section 19829.9846 of the Government Code proposed by
this bill and Assembly Bill 1627. It shall only become operative if
(1) both bills are enacted and become effective on or before January
1, 2017, (2) each bill amends Section 19829.9846 of the Government
Code, and (3) this bill is enacted after Assembly Bill 1627, in which
case Section 19829.9846 of the Government Code, as amended by
Assembly Bill 1627, shall remain operative only until the operative
date of this bill, at which time Section 7.5 of this bill shall
become operative, and Section 7 of this bill shall not become
operative.
SEC. 17. Section 10.5 of this bill incorporates
amendments to Section 22871.3 of the Government Code proposed by this
bill and Assembly Bill 1627. It shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2017, (2) each bill amends Section 22871.3 of the Government Code,
and (3) this bill is enacted after Assembly Bill 1627, in which case
Section 22871.3 of the Government Code, as amended by Assembly Bill
1627, shall remain operative only until the operative date of this
bill, at which time Section 10.5 of this bill shall become operative,
and Section 10 of this bill shall not become operative.
SEC. 18. Section 11.5 of this bill incorporates
amendments to Section 22874.3 of the Government Code proposed by this
bill and Assembly Bill 1627. It shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2017, (2) each bill amends Section 22874.3 of the Government Code,
and (3) this bill is enacted after Assembly Bill 1627, in which case
Section 22874.3 of the Government Code, as amended by Assembly Bill
1627, shall remain operative only until the operative date of this
bill, at which time Section 11.5 of this bill shall become operative,
and Section 11 of this bill shall not become operative.
SEC. 19. Section 12.5 of this bill incorporates
amendments to Section 22879 of the Government Code proposed by this
bill and Assembly Bill 1627. It shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2017, (2) each bill amends Section 22879 of the Government Code, and
(3) this bill is enacted after Assembly Bill 1627, in which case
Section 22879 of the Government Code, as amended by Assembly Bill
1627, shall remain operative only until the operative date of this
bill, at which time Section 12.5 of this bill shall become operative,
and Section 12 of this bill shall not become operative.
SEC. 20. Section 13.5 of this bill incorporates
amendments to Section 22944.5 of the Government Code proposed by this
bill and Assembly Bill 1627. It shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2017, (2) each bill amends Section 22944.5 of the Government Code,
and (3) this bill is enacted after Assembly Bill 1627, in which case
Section 22944.5 of the Government Code, as amended by Assembly Bill
1627, shall remain operative only until the operative date of this
bill, at which time Section 13.5 of this bill shall become operative,
and Section 13 of this bill shall not become operative.
SEC. 21. Section 14.5 of this bill incorporates
amendments to Section 22958.1 of the Government Code proposed by this
bill and Assembly Bill 1627. It shall only become operative if (1)
both bills are enacted and become effective on or before January 1,
2017, (2) each bill amends Section 22958.1 of the Government Code,
and (3) this bill is enacted after Assembly Bill 1627, in which case
Section 22958.1 of the Government Code, as amended by Assembly Bill
1627, shall remain operative only until the operative date of this
bill, at which time Section 14.5 of this bill shall become operative,
and Section 14 of this bill shall not become operative.
SEC. 22. This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.
SECTION 1. The Legislature finds and declares
that the purposes of this act is to approve the agreement entered
into by the state employer and State Bargaining Unit 7 pursuant to
Section 3517.5 of the Government Code.
SEC. 2. The provisions of the memorandum of
understanding prepared pursuant to Section 3517.5 of the Government
Code and entered into by the state employer and State Bargaining Unit
7, dated June 9, 2016, and that require the expenditure of funds,
are hereby approved for the purposes of subdivision (b) of Section
3517.6 of the Government Code.
SEC. 3. The provisions of the memorandum of
understanding approved in Section 2 of this act that require the
expenditure of funds shall not take effect unless funds for these
provisions are specifically appropriated by the Legislature. If funds
for these provisions are not specifically appropriated by the
Legislature, either the state employer or the affected employee
organization may reopen negotiations on all or part of the memorandum
of understanding.
SEC. 4. Notwithstanding Section 3517.6 of the
Government Code, the provisions of the memorandum of understanding
included in Section 2 of this act that require the expenditure of
funds shall become effective even if the provisions of the memorandum
of understanding are approved by the Legislature in legislation
other than the annual Budget Act.
SEC. 5. The sum of thirty-eight million six
hundred eleven thousand dollars ($38,611,000) is hereby appropriated
for State Bargaining Unit 7 for expenditure in the 2016-17 fiscal
year in augmentation of, and for the purpose of, state employee
compensation, as provided in Items 9800-001-0001, 9800-001-0494, and
9800-001-0988 of Section 2.00 of the Budget Act of 2016, in
accordance with the following schedule:
(a) Nine million six hundred sixty-seven thousand dollars
($9,667,000) from the General Fund in augmentation of Item
9800-001-0001.
(b) Nineteen million three hundred ninety-two thousand dollars
($19,392,000) from unallocated special funds in augmentation of Item
9800-001-0494.
(c) Nine million five hundred fifty-two thousand dollars
($9,552,000) from other unallocated nongovernmental cost funds in
augmentation of Item 9800-001-0988.
SEC. 6. Section 19829.9845 of the Government
Code is amended to read:
19829.9845. (a) Notwithstanding Section 13340, for the 2017-18
fiscal year, if the Budget Act of 2017 is not enacted by July 1,
2017, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 7 (effective July 2, 2016,
to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective
July 1, 2015, to July 1, 2019, inclusive) there is hereby
continuously appropriated to the Controller from the General Fund,
unallocated special funds, including, but not limited to, 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 an above memorandum of understanding until the Budget Act
of 2017 is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state employees
covered by an above memorandum of understanding for work performed
between July 1, 2017, of the 2017-18 fiscal year and the enactment of
the Budget Act of 2017.
(b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 7 (effective July 2, 2016,
to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective
July 1, 2015, to July 1, 2019, inclusive) are in effect and approved
by the Legislature, the compensation and contribution for employee
benefits for state employees represented by these bargaining units
shall be at a rate consistent with the applicable memorandum of
understanding referenced above.
(c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2017, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2017 for each affected department.
(d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 7 (effective July 2, 2016, to July
1, 2019, inclusive) and State Bargaining Unit 12 (effective July 1,
2015, to July 1, 2019, inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the terms of the memoranda of understanding have expired. For
purposes of this section, the memoranda of understanding for State
Bargaining Unit 7 and State Bargaining Unit 12 expire on July 1,
2019.
SEC. 7. Section 19829.9846 of the Government
Code is amended to read:
19829.9846. (a) Notwithstanding Section 13340, for the 2018-19
fiscal year, if the Budget Act of 2018 is not enacted by July 1,
2018, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 7 (effective July 2, 2016,
to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective
July 1, 2015, to July 1, 2019, inclusive) there is hereby
continuously appropriated to the Controller from the General Fund,
unallocated special funds, including, but not limited to, 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 an above memorandum of understanding until the Budget Act
of 2018 is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state employees
covered by an above memorandum of understanding for work performed
between July 1, 2018, of the 2018-19 fiscal year and the enactment of
the Budget Act of 2018.
(b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 7 (effective July 2, 2016,
to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective
July 1, 2015, to July 1, 2019, inclusive) are in effect and approved
by the Legislature, the compensation and contribution for employee
benefits for state employees represented by these bargaining units
shall be at a rate consistent with the applicable memorandum of
understanding referenced above.
(c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2018, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2018 for each affected department.
(d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 7 (effective July 2, 2016, to July
1, 2019, inclusive) and State Bargaining Unit 12 (effective July 1,
2015, to July 1, 2019, inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the terms of the memoranda of understanding have expired. For
purposes of this section, the memoranda of understanding for State
Bargaining Unit 7 and State Bargaining Unit 12 expire on July 1,
2019.
SEC. 8. Section 22871.3 of the Government Code
is amended to read:
22871.3. (a) The employer contribution for each annuitant
enrolled in a basic plan shall be an amount equal to 80 percent of
the weighted average of the health benefit plan premiums for an
employee or annuitant enrolled for self-alone, during the benefit
year to which the formula is applied, for the four health benefit
plans that had the largest active state civil service enrollment,
excluding family members, during the previous benefit year. For each
annuitant with enrolled family members, the employer contribution
shall be an amount equal to 80 percent 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, in the four
health benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year.
(b) The employer contribution for each annuitant enrolled in a
Medicare health benefit plan in accordance with Section 22844 shall
be an amount equal to 80 percent of the weighted average of the
health benefit plan premiums for an annuitant enrolled in a Medicare
health benefit plan for self-alone, during the benefit year to which
the formula is applied, for the four Medicare health benefit plans
that had the largest state annuitant enrollment, excluding family
members, during the previous benefit year. For each annuitant with
enrolled family members, the employer contribution shall be an amount
equal to 80 percent 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, in the four Medicare
health benefit plans that had the largest state annuitant enrollment,
excluding family members, during the previous benefit year. If the
annuitant is eligible for Medicare Part A, with or without cost, and
Medicare Part B, regardless of whether the annuitant is actually
enrolled in Medicare Part A or Part B, the employer contribution
shall not exceed the amount calculated under this subdivision.
(c) This section applies to:
(1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016, and
who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and first employed by the state and becomes a
state member of the system on or after January 1, 2016.
(3) A state employee represented by State Bargaining Unit 6, 7, or
12 who is first employed by the state and becomes a state member of
the system on or after January 1, 2017.
(4) A state employee related to State Bargaining Unit 6, 7, or 12
who is excepted from the definition of "state employee" in
subdivision (c) of Section 3513 and first employed by the state and
becomes a state member of the system on or after January 1, 2017.
(5) A judicial branch employee who is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
This paragraph does not apply to a judge who is subject to Chapter
11 (commencing with Section 75000) or Chapter 11.5 (commencing with
Section 75500) of Title 8.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
SEC. 9. Section 22874.3 of the Government Code
is amended to read:
22874.3. (a) Notwithstanding Sections 22870, 22871, 22873, and
22874, a state employee, defined by subdivision (c) of Section 3513,
who is first employed by the state and becomes a state member of the
system on or after January 1, 2017, and who is represented by State
Bargaining Unit 6 or 7 shall not receive any portion of the employer
contribution payable for annuitants unless the person is credited
with 15 years of state service at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table:
Percentage
Credited
Years of
of Service Employer
Contribution
15...................... 50
16...................... 55
17...................... 60
18...................... 65
19...................... 70
20...................... 75
21...................... 80
22...................... 85
23...................... 90
24...................... 95
25 or more.............. 100
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed before January 1,
2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become
subject to representation by State Bargaining Unit 6 or 7 on or after
January 1, 2017.
(3) State employees on an approved leave of absence employed
before January 1, 2017, who return to active employment on or after
January 1, 2017.
(4) State employees hired after January 1, 2017, who are first
represented by a State Bargaining Unit other than Bargaining Unit 6
or 7, who later become represented by State Bargaining Unit 6 or 7.
(e) Notwithstanding Section 22875, this section shall also apply
to a related state employee who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513 and is first
employed by the state and becomes a state member of the system on or
after January 1, 2017.
SEC. 10. Section 22879 of the Government Code
is amended to read:
22879. (a) The board shall pay monthly to an employee or
annuitant who is enrolled in, or whose family member is enrolled in,
a Medicare health benefit plan under this part the amount of the
Medicare Part B premiums, exclusive of penalties, except as provided
in Section 22831. This payment may not exceed 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. No payment may be made in any month if the difference is
less than one dollar ($1).
(b) This section shall be applicable only to state employees,
annuitants who retired while state employees, and the family members
of those persons.
(c) With respect to an annuitant, the board shall pay to the
annuitant the amount required by this section from the same source
from which his or her allowance is paid. Those amounts are hereby
appropriated monthly from the General Fund to reimburse the board for
those payments.
(d) There is hereby appropriated from the appropriate funds the
amounts required by this section to be paid to active state
employees.
(e) This section does not apply to:
(1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016, and
who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and is first employed by the state and becomes a
state member of the system on or after January 1, 2016.
(3) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2017, and
who is represented by State Bargaining Unit 6, 7, or 12.
(4) A state employee related to State Bargaining Unit 6, 7, or 12
who is excepted from the definition of "state employee" in
subdivision (c) of Section 3513 and is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
(5) A judicial branch employee who is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
This paragraph does not apply to a judge who is subject to Chapter
11 (commencing with Section 75000) or Chapter 11.5 (commencing with
Section 75500) of Title 8.
SEC. 11. Section 22944.5 of the Government Code
is amended to read:
22944.5. (a) (1) The state and employees in State Bargaining Unit
7, 9, 10, or 12 shall prefund retiree health care, with the goal of
reaching a 50-percent cost sharing of actuarially determined normal
costs for both employer and employees by July 1, 2019.
(2) The state and employees in State Bargaining Unit 6 shall
prefund retiree health care, with the goal of reaching a 50-percent
cost sharing of actuarially determined normal costs for both employer
and employees by July 1, 2018.
(3) The state and employees in the judicial branch shall prefund
retiree health care, with the goal of reaching a 50-percent cost
sharing of actuarially determined normal costs for both employer and
employees by July 1, 2017.
(b) (1) The employees in State Bargaining Unit 9 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.5 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 0.5 percent for a total
employee contribution of 1.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total
employee contribution of 2.0 percent of pensionable compensation.
(2) The employees in State Bargaining Unit 10 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7
percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.7 percent for a total
employee contribution of 1.4 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total
employee contribution of 2.8 percent of pensionable compensation.
(3) The employees in State Bargaining Unit 6 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.3 percent of pensionable
compensation.
(B) Effective July 1, 2017, an additional 1.3 percent for a total
employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 4.0 percent of pensionable compensation.
(4) The state employees in the judicial branch shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.5 percent of pensionable
compensation.
(B) Effective July 1, 2017, up to an additional 1.5 percent for a
total employee contribution of up to 3.0 percent of pensionable
compensation. The additional amount shall be determined by the
Director of Finance no later than April 1, 2017, based on the
actuarially determined normal costs identified in the state
valuation.
(C) This paragraph does not apply to a judge who is subject to
Chapter 11 (commencing with Section 75000) or Chapter 11.5
(commencing with Section 75500) of Title 8.
(5) The employees in State Bargaining Unit 12 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.9 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 3.3 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total
employee contribution of 4.6 percent of pensionable compensation.
(6) The employees in State Bargaining Unit 7 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.3 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 2.7 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total
employee contribution of 4.0 percent of pensionable compensation.
(c) This section only applies to employees who are eligible for
health benefits, including permanent intermittent employees.
(d) Contributions paid pursuant to this section shall be deposited
in the Annuitants' Health Care Coverage Fund and shall not be
refundable under any circumstances to an employee or his or her
beneficiary or survivor.
(e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of a memorandum of understanding require the expenditure of funds,
the provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
(f) This section shall also apply to a state employee related to a
bargaining unit described in subdivision (a) who is excepted from
the definition of "state employee" in subdivision (c) of Section
3513.
SEC. 12. Section 22958.1 of the Government Code
is amended to read:
22958.1. (a) Notwithstanding Sections 22953, 22957, and 22958,
the following employees shall not receive any portion of the employer
contribution payable for annuitants unless the person is credited
with 15 or more years of state service, as defined by this section,
at the time of retirement:
(1) A state employee, as defined by subdivision (c) of Section
3513, who is first employed by the state and becomes a state member
of the system on or after January 1, 2017, and is represented by
State Bargaining Unit 6, 7, or 12.
(2) A state employee related to State Bargaining Unit 6, 7, or 12
who is excepted from the definition of "state employee" in
subdivision (c) of Section 3513 and is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
(b) The percentage of the employer contribution payable for
postretirement dental care benefits for an employee subject to this
section shall be based on the funding provision of the plan and the
completed years of credited state service at retirement as shown in
the following table:
Credited Percentage of
Years Employer
of Service Contribution
15...................... 50
16...................... 55
17...................... 60
18...................... 65
19...................... 70
20...................... 75
21...................... 80
22...................... 85
23...................... 90
24...................... 95
25 or more.............. 100
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed prior to January 1,
2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become
subject to representation by State Bargaining Unit 6, 7, or 12 on or
after January 1, 2017.
(3) State employees on an approved leave of absence employed
before January 1, 2017, who return to active employment on or after
January 1, 2017.
(4) State employees hired after January 1, 2017, who are first
represented by a State Bargaining Unit other than Bargaining Unit 6,
7, or 12, who later become represented by State Bargaining Unit 6, 7,
or 12.
(e) In those cases where the state has assumed from a public
agency a function and the related personnel, service rendered by that
personnel for compensation as employees or appointed or elected
officers of that public agency may not be credited as state service
for the purposes of this section unless the former employer has paid
or agreed to pay the state the amount actuarially determined to equal
the cost for any employee dental benefits that were vested at the
time that the function and the related personnel were assumed by the
state, and the Department of Finance finds that the contract contains
a benefit factor sufficient to reimburse the state for the amount
necessary to fully compensate for the postretirement dental benefit
costs of those personnel. For noncontracting public agencies, the
state agency that has assumed the function shall certify the
completed years of public agency service to be credited to the
employee as state service credit under this section.
SEC. 13. This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.