SB 1203,
as amended, Hertzberg. begin deleteFirefighters and peace officers: health benefits. end deletebegin insertRetirement systems: joint powers authorities: benefit formulas.end insert
The California Public Employees’ Pension Reform Act of 2013 (PEPRA) requires a public retirement system, as defined, to modify its plan or plans to comply with the act and, among other provisions, establishes new retirement formulas that may not be exceeded by a public employer offering a defined benefit pension plan for employees first hired on or after January 1, 2013. Existing law, the Joint Exercise of Powers Act, generally authorizes 2 or more public agencies, by agreement, to jointly exercise any common power, which may include hiring employees and establishing retirement systems.
end insertbegin insertThis bill would require a joint powers authority to offer defined benefit plans or formulas that are not PEPRA plans or formulas provided that the plans or formulas were those the employees received prior to the creation of the authority, the employees are not new members under PEPRA, and they are employed by the authority with 180 days, as specified.
end insertUnder the Public Employees’ Medical and Hospital Care Act (PEMHCA), an uninsured surviving spouse or other eligible family member of a deceased firefighter or peace officer is eligible to enroll in a health benefit plan approved or maintained by the Board of Administration of the Public Employees’ Retirement System if the death of the firefighter or peace officer occurred as a result of injury or disease arising out of, and in the course of, the firefighter’s or peace officer’s official duties, as specified. Under PEMHCA, the employer of a deceased firefighter or peace officer is required to notify the board within 10 days of the death of the firefighter or peace officer if a spouse or a family member may be so eligible for enrollment.
end deleteThis bill would require the employer to also provide the board with updated contact information of the spouse or family member. By requiring local government employers to provide this contact information, the bill would impose a state-mandated local program.
end deleteThe California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
end deleteThis bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: yes.
State-mandated local program: begin deleteyes end deletebegin insertnoend insert.
The people of the State of California do enact as follows:
begin insertSection 7522.05 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
2to read:end insert
(a) A joint powers authority formed on or after
4January 1, 2013, and formed pursuant to the provisions of the
5Joint Exercise of Powers Act (Article 1 (commencing with Section
66500) of Chapter 5), where at least one member agency provided
7benefits on or before December 31, 2012, as described in
8subdivision (c) of Section 7522.02, shall provide employees of that
9joint powers authority the defined benefit plan or formula that
10those employees received from their respective employers prior
11to the exercise of a common power where that employee was not
12a new member with that employer and subsequently is employed
13by the joint powers authority within 180 days of the member agency
14providing for the exercise of a common power.
P3 1
(b) The formation of a
joint powers authority on or after January
21, 2013, shall not act in a manner as to exempt a new employee
3or a new member, as defined by Section 7522.04, hired by that
4joint powers authority from the requirements of the Public
5Employees’ Pension Reform Act of 2013. New members may only
6participate in a defined benefit plan or formula that conforms to
7the requirements of the Public Employees’ Pension Reform Act of
82013.
Section 22820 of the Government Code is
10amended to read:
(a) Upon the death, on or after January 1, 2002, of a
12firefighter employed by a county, city, city and county, district,
13or other political subdivision of the state, a firefighter employed
14by the Department of Forestry and Fire Protection, a firefighter
15employed by the federal government who was a resident of this
16state and whose regular duty assignment was to perform
17firefighting services within this state, or a peace officer as defined
18in Section 830.1, 830.2, 830.3, 830.31, 830.32, 830.33, 830.34,
19830.35, 830.36, 830.37, 830.38, 830.39, 830.4, 830.5, 830.55, or
20830.6 of the Penal Code, if the death occurred as a result of injury
21or disease arising out of and in the course of his or her official
22duties, the surviving spouse or other eligible family member of
23the deceased firefighter or
peace officer, if uninsured, is deemed
24to be an annuitant under Section 22760 for purposes of enrollment.
25All eligible family members of the deceased firefighter or peace
26officer who are uninsured may enroll in a health benefit plan of
27the surviving spouse’s choice. However, an unmarried child of the
28surviving spouse is not eligible to enroll in a health benefit plan
29under this section if the child was not a family member under
30Section 22775 and regulations pertinent thereto prior to the
31firefighter’s or peace officer’s date of death. The employer of the
32deceased firefighter or peace officer shall notify the board within
3310 business days of the death of the employee if a spouse or family
34member may be eligible for enrollment in a health benefit plan
35under this section, and shall provide the board with updated contact
36information of the
spouse or family member.
37(b) Upon notification, the board shall promptly determine
38eligibility and shall forward to the eligible spouse or family
39member the materials necessary for enrollment. In the event of a
40dispute regarding whether a firefighter’s or peace officer’s death
P4 1occurred as a result of injury or disease arising out of and in the
2course of his or her official duties as required under subdivision
3(a), that dispute shall be determined by the Workers’ Compensation
4Appeals Board, subject to the same procedures and standards
5applicable to hearings relating to claims for workers’ compensation
6benefits. The jurisdiction of the Workers’ Compensation Appeals
7Board under this section is limited to the sole issue of industrial
8causation and this section does not authorize the Workers’
9Compensation Appeals Board to award costs against the system.
10(c) (1) Notwithstanding any other provision of law, and except
11as otherwise provided in subdivision (d), the state shall pay the
12employer contribution required for enrollment under this part for
13the uninsured surviving spouse of a deceased firefighter or peace
14officer for life, and the other uninsured eligible family members
15of a deceased firefighter or peace officer, provided the family
16member meets the eligibility requirements of Section 22775 and
17regulations pertinent thereto.
18(2) The contribution payable by the state for each uninsured
19surviving spouse and other uninsured eligible family members
20shall be adjusted annually and be equal to the amount specified in
21Section 22871.
22(3) The state’s contribution under this section shall commence
23on the effective date of enrollment of the uninsured surviving
24spouse or other uninsured eligible family
members. The
25contribution of each surviving spouse and eligible family member
26shall be the total cost per month of the benefit coverage afforded
27him or her under the plan less the portion contributed by the state
28pursuant to this section.
29(d) The cancellation of coverage by an annuitant, as defined in
30this section, shall be final without option to reenroll, unless
31coverage is canceled because of enrollment in an insurance plan
32from another source.
33(e) For purposes of this section, “surviving spouse” means a
34spouse who was married to the deceased firefighter or peace officer
35on the deceased’s date of death and either was married for a
36continuous period of at least one year prior to the date of death or
37was married to the deceased prior to the date the deceased
38firefighter or peace officer sustained the injury or disease resulting
39in death.
P5 1(f) For purposes of this section, “uninsured” means that the
2surviving spouse is not enrolled in an employer-sponsored health
3plan under which the employer contribution covers 100 percent
4of the cost of health care premiums.
5(g) The board has no duty to identify, locate, or notify any
6surviving spouse or eligible family member who may be or may
7become eligible for benefits under this section.
If the Commission on State Mandates determines that
9this act contains costs mandated by the state, reimbursement to
10local agencies and school districts for those costs shall be made
11pursuant to Part 7 (commencing with Section 17500) of Division
124 of Title 2 of the Government Code.
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