BILL ANALYSIS
AB 1625
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1625 (Perez)
As Amended October 7, 2010
2/3 vote. Urgency
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|ASSEMBLY: | |(April 22, |SENATE: |32-0 |(October 7, |
| | |2010) | | |2010) |
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(vote not relevant)
Original Committee Reference: BUDGET
SUMMARY : Approves the recent memoranda of understanding (MOU)
agreed to by the state and the state bargaining units (BUs)
represented exclusively by the Service Employees International
Union (SEIU), Local 1000, including BU 1 (Professional,
Administrative, Financial, and Staff Services), BU 3
(Professional Educators and Librarians), BU 4 (Office and
Allied), BU 11 (Engineering and Scientific Technicians), BU 14
(Printing and Allied Trades), BU 15 (Allied Services), BU 17
(Registered Nurses), BU 20 (Medical and Social Services), and,
BU 21 (Educational Consultant and Library).
The Senate amendments delete the Assembly version of the bill,
and instead provide legislative ratification for MOUs agreed to
between the State and state BUs 1, 3, 4, 11, 14, 15, 17, 20, and
21.
EXISTING LAW :
1)Requires, under the State Employee-Employer Relations Act
(Dills Act), collective bargaining agreements (MOUs) that are
negotiated between the state and exclusive representatives of
each of the 21 state BUs be ratified by the Legislature.
2)Establishes five separate retirement classes for state
employees: State Miscellaneous and Industrial (which receive
substantially the same benefits), State Safety, State Peace
Officer/Firefighter, and State Patrol.
3)Specifies that if the provisions of certain statutes are in
conflict with a MOU, the terms of the MOU are prevailing.
AS PASSED BY THE ASSEMBLY, expresses the intent of the
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Legislature to enact statutory changes relating to the Budget
Act of 2010.
FISCAL EFFECT : According to the Department of Personnel
Administration (DPA), these agreements will result in Fiscal
Year 2010-2011 savings of $382.6 million (General Fund - $164.1
million and Other Funds - $218.4 million).
The total savings over the duration of the contract of $632.3
million (General Fund - $262.0 million and Other Funds - $370.3
million).
COMMENTS : The following information regarding the MOUs was
provided by DPA:
Number of Employees
This agreement affects approximately 95,000 full-time
equivalents.
Retirement Benefit Formula Calculation
Effective the pay period following ratification by both parties,
Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, and 21
Miscellaneous and Industrial First Tier retirement members,
first employed by the state, will be subject to the "New 2010
First Tier Retirement Formula" of 2% at age 60 (from current 2%
at 55).
Effective the pay period following ratification by both parties,
BU 1, 3, 4, 11, 14, 15, 17, 20, and 21 State Safety retirement
members, first employed by the state, will be subject to the
"New 2010 First Tier Retirement Formula" of 2% at age 55 (from
current 2.5% at 55).
Employee Pension Contribution
Effective the pay period following ratification by both parties,
current BU 1, 3, 4, 11, 14, 15, 17, 20, and 21 Miscellaneous and
Industrial members in the First Tier retirement category shall
have their contribution increased from 5% to 8% of monthly
compensation over $513.
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Effective the pay period following ratification by both parties,
current BU 1, 3, 4, 11, 14, 15, 17, 20, and 21 State Safety
retirement members shall have their contribution increased from
6% to 9% of monthly compensation over $317.
Compensation -Adjusted Pay Ranges
Effective July 1, 2013 all BU 1, 3, 4, 11, 14, 15, 17, 20, and
21 represented classifications (excluding Seasonal Clerks and BU
3 classifications in CDCR who work an academic calendar) shall
be adjusted by increasing the maximum step of the pay range by
3%. This only applies to BU 1, 3, 4, 11, 14, 15, 17, 20, and 21
employees who reach the top step of the pay range.
Effective July 1, 2013 all BU 3 represented classifications in
CDCR who work an academic calendar shall receive a 3% salary
differential. This only applies to BU 3 employees in CDCR who
work an academic calendar who reach step 6 or higher of the pay
range.
Effective July 1, 2013 the Seasonal Clerk classification shall
have 50 cents added to each salary rate.
Personal Leave Program (PLP 2010)
Effective the pay period following ratification by both parties,
the Personal Leave Program (PLP 2010) will apply to BU 1, 3, 4,
11, 14, 15, 17, 20, and 21 employees. This program shall remain
in effect for twelve months.
Health Benefits - Employer Contribution
Effective the pay period following ratification by both parties,
the State's monthly contribution to the health insurance portion
of the BU 1, 4, 11, 14, 15, 17, 20, and 21 employee's allowance
shall be an amount equal to eighty percent of the weighted
average of the premiums for the four Basic health benefit plans
with the largest enrollment (the 80/80 formula).
Effective the pay period following ratification by both parties,
the State's monthly contribution to the health insurance portion
of the BU 3 employee's allowance will be set at a dollar amount
that equals the 80/80 formula. The amounts shall be increased
pursuant to the formulas above on January 1, 2011, January 1,
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2012, and January 1, 2013.
Miscellaneous
The State will not implement a new furlough program for BU 1, 3,
4, 11, 14, 15, 17, 20, and 21 employees during the twelve full
months following ratification by both parties.
The State and SEIU Local 1000 agree to present to the
Legislature, as part of the legislation implementing this
Memorandum of Understanding (MOU), a provision to appropriate
funds to cover the economic terms of this agreement through July
1, 2013.
The State and SEIU Local 1000 agreed to delete Lincoln's
Birthday and Columbus Day as recognized holidays.
Employees that work on January 1st, the last Monday in May, July
4th, the first Monday in September, Thanksgiving Day or
Christmas shall receive one and one-half times the employee's
regular rate of pay and up to eight hours of holiday credit for
all hours worked on the holiday.
Duration
Three years - July 1, 2010, through July 1, 2013.
This bill also increases the retirement contributions for state
excluded and exempt employees, as specified.
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN: 0007244