Amended in Assembly April 21, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1681

Introduced by Assembly Member Allen

February 12, 2014

An act to add Sections 3509.7 and 3523.4 to the Government Code, relating to public employees’ benefits.

LEGISLATIVE COUNSEL’S DIGEST

AB 1681, as amended, Allen. Public employees: benefits.

Existing law permits the Board of Administration of the Public Employees’ Retirement System to authorize an employer to participate in the prefunding of health care coverage and other postemployment benefits for annuitants.

This bill would begin delete require a memorandum of understanding or on the topic of postemployment health care benefits between end delete begin insert prohibit end insert a public begin delete employer or a end delete begin insert agency, end insert state begin delete employer and end delete begin insert agency, employee organization, or public end insert employees begin delete to contain a plan to begin the permanent prefunding of end delete begin insert from entering into a memorandum of understanding that provides postemployment health care benefits without a strategy for permanently prefunding members’ end insert postemployment health care benefits. begin delete The bill would provide that the plan may authorize any amount that otherwise would be used to permanently increase employee compensation to be used to permanently prefund members’ postemployment healthcare benefits. end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 3509.7 is added to the Government Code,
to read:

3509.7.  

(a) Notwithstanding any other law, a public agency begin insert ,
employee organization, or public employee end insert shall not enter into a
memorandum of understanding begin delete or on the topic of postemployment
health care benefits with employees first hired end delete on or after January
1, 2015, begin delete unless it contains a plan to begin permanent prefunding
of end delete begin insert that provides postemployment health care benefits without a
strategy for permanently prefunding members’ end insert postemployment
health care benefits pursuant to Article 11 (commencing with
Section 22940) of Chapter 1 or Part 5 of Division 5 of Title 2. begin delete The
plan may authorize any amount that otherwise would be used to
permanently increase employee compensation to be used to
permanently prefund members’ postemployment health care
benefits. end delete

(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding, the memorandum
of understanding shall be controlling, except that upon expiration
of the memorandum of understanding or other collective bargaining
agreement, this section shall be controlling and may not be
superseded by a subsequent memorandum of understanding or
other collective bargaining agreement.

SEC. 2.  

Section 3523.4 is added to the Government Code, to
read:

3523.4.  

(a) Notwithstanding any other law, the state employer begin insert ,
employee organization, or state employee end insert shall not enter into a
memorandum of understanding begin delete on the topic of postemployment
health care benefits with employees first hired end delete on or after January
1, 2015, begin delete unless it contains a plan to begin permanent prefunding
of end delete begin insert that provides postemployment health care benefits without a
strategy for permanently prefunding members’ end insert postemployment
health care benefits pursuant to Article 11 (commencing with
Section 22940) of Chapter 1 or Part 5 of Division 5 of Title 2. begin delete The
plan may authorize any amount that otherwise would be used to
permanently increase employee compensation to be used to
permanently prefund members’ postemployment health care
benefits. end delete

(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding, the memorandum
of understanding shall be controlling, except that upon expiration
of the memorandum of understanding, this section shall be
controlling and may not be superseded by a subsequent
memorandum of understanding or other collective bargaining
agreement.