BILL ANALYSIS �
SB 1294
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Date of Hearing: August 8, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1294 (Berryhill) - As Amended: June 13, 2012
Policy Committee: PERSS Vote:5-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill allows Mariposa County to provide a higher employer
contribution for health benefits for its retirees than for its
active employees, and require it be executed through a
memorandum of understanding (MOU) or by a resolution adopted by
a majority of the County Board of Supervisors. Specifically,
this bill:
1)Requires Mariposa County to provide CalPERS with notification
of the MOU agreement or resolution and to provide any
necessary information in order to implement the requirements
of these changes.
2)Specifies that the obligations or benefits of either the
annuitants or the county that exist at the time of the bill's
enactment will not be affected.
FISCAL EFFECT
Negligible fiscal impact.
COMMENTS
1)Purpose . According to the author, the county has negotiated a
change to their benefit package, which would reduce the health
insurance benefit for some current employees. This change
also eliminates an automatic escalator in benefits which was
incorporated in some, but not all, of the County's labor
agreements. The author notes the employees' overall
compensation would not change; however, because the health
insurance benefit is being adjusted, many employees will see
an increase, but others will see a decrease. The author
SB 1294
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states that because the Public Employees' Medical and Hospital
Care Act requires the county to provide retirees exactly the
same health insurance benefit as current employees, when this
package is enacted some of the County retirees would see a
reduction in their health benefits. This bill will allow to
continue to fund existing retiree health benefits.
2)The sponsor, the County of Mariposa, report this unintended
consequence of their labor agreements has resulted in a
reduction in medical insurance benefits for some Mariposa
County retirees. Since this was not their intent, the Board
of Supervisors argues it is important to take whatever actions
are possible to allow these retirees to keep their current
level of medical insurance benefits. They are sponsoring SB
1294 to provide the legal means for the County to allow
current retirees medical insurance benefits to stay at their
present level.
3)There is no registered opposition to this bill.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081