BILL ANALYSIS
AB 820
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Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Ed Hernandez, Chair
AB 820 (Conway) - As Introduced: February 26, 2009
SUBJECT : Public employees.
SUMMARY : Makes changes to the Vision Care Program for State
Annuitants (Vision Care Program) and the Group Legal Services
Plan (Legal Plan) offered to state employees. Specifically,
this bill :
1)Allows state, legislative, and judicial branch retirees to
participate in the Legal Plan which is currently offered to
state employees, provided the annuitant pays the full costs of
the plan.
2)Authorizes the Department of Personnel Administration (DPA) to
directly bill an annuitant if there are insufficient funds in
the annuitant's benefit allowance to pay the premium for the
Vision Care Program.
3)Provides that moneys in the Vision Care Program are
continuously appropriated.
EXISTING LAW :
1)Authorizes DPA to enter into contracts to purchase various
insurance benefits for excluded and exempt employees (managers
and supervisors). The individual Memoranda of Understanding
for the 21 bargaining units authorize participation
eligibility for rank-and-file state employees.
The Legal Plan is a voluntary and fully employee-paid, designed
to meet an individual's most common personal legal needs,
providing comprehensive legal coverage for eligible employees
and their eligible dependents.
Currently, the Legal Plan is only available to active employees
and their eligible dependents via post-tax payroll deduction.
Once state employees separate or retire, they are no longer
eligible to participate in the Legal Plan.
AB 820
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2)Establishes the Vision Care Program and the Vision Care
Program for State Annuitants Fund. State retirees
participating in the Vision Care Program are required to pay
100% of the costs of the premiums and a small surcharge that
covers the costs associated with administering the Vision Care
Program.
FISCAL EFFECT : Unknown.
COMMENTS : According to the sponsor, DPA, "Current state law
does not allow state, legislative and judicial retirees to
participate in the Group Legal Services Plan administered by
DPA. Retirees have a similar, perhaps greater, need for legal
services than active employees. AB 820 allows state,
legislative, and judicial branch retirees to participate in the
Group Legal Services Plan at their own expense."
The sponsor goes on to state, "The Vision Care Program for State
Annuitants, unlike most of the state's benefit programs,
requires an annual appropriation. AB 820 would align this
funding system to a continuously appropriated fund, like other
benefit programs, thereby eliminating an unnecessary
administrative burden and ensure retirees receive services they
have paid for without disruption."
Supporters conclude, "Additionally, this bill clarifies that
these retirees may also participate in the retiree vision care
program at their own expense with after-tax dollars. There are
approximately 700 retirees who receive retirement checks that
are less than the amount of deducted expenses. Retirement
checks may not be enough to cover the cost of health care
premiums; in such cases, these retirees may pay any additional
vision care premium costs with after-tax dollars."
REGISTERED SUPPORT / OPPOSITION :
Support
Department of Personnel Administration (Sponsor)
California State Employees Association
Opposition
None on file
AB 820
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Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957