BILL NUMBER: SB 857 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 8, 2016
AMENDED IN ASSEMBLY MAY 25, 2016
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 7, 2016
An act relating to the Budget Act of 2016.
An act to amend Sections 19829.9845, 19829.9846, 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 857, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2016. State employment:
memorandum of understanding: Bargaining Unit 7.
(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, 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 in augmentation of certain items
of the Budget Act of 2016, according to a specified schedule, for
State Bargaining Unit 7 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) 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, 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) 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, 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) 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, as specified.
(5) 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 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 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) 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
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.
(7) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2016.
Vote: majority. Appropriation: no yes
. Fiscal committee: no 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
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 memorandum 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 the 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 the
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 memorandum 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) 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 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) memorandum memoranda
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 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 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 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 the
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 memorandum 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) 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 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) memorandum memoranda
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 7 and
State Bargaining Unit 12 expires 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 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
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 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,
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 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, 6 or 7, who later become represented
by State Bargaining Unit 6. 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
6, 7, or 12.
(4) A state employee related to State Bargaining Unit 6
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 (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 6, 7, or 12.
(2) A state employee related to State Bargaining Unit 6
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
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 6, 7, or 12, who later become
represented by State Bargaining Unit 6 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.
SECTION 1. It is the intent of the Legislature
to enact statutory changes, relating to the Budget Act of 2016.