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SB-1141 Public employees: postemployment health care benefits.(2011-2012)

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CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Senate Bill
No. 1141

Introduced  by  Senator Walters

February 21, 2012

An act to amend Sections 22870 and 22890 of, and to add Section 7514.6 to, the Government Code, relating to public employee benefits.


LEGISLATIVE COUNSEL'S DIGEST


SB 1141, as introduced, Walters. Public employees: postemployment health care benefits.
The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, establishes provisions governing postemployment health care benefits for members and their families, upon meeting vesting requirements and subject to various limitations. Existing law also establishes various postemployment health care benefits under other benefit systems, including those offered by counties, districts, cities, and the University of California.
This bill would prohibit a public employer, for employees first hired on or after January 1, 2013, from entering into a memorandum of understanding or other collective bargaining agreement that provides for defined postemployment health care benefits unless each employee pays at least 50 percent of the actuarially required contributions to fund those health care benefits. The bill would also declare that ensuring the statewide integrity and security of state and local government health care plans is a matter of statewide concern and not a municipal affair, and that, therefore, all cities, including charter cities, would be subject to the provisions of the bill. The bill would also declare that these provisions apply to the University of California to ensure the financial security of the university.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 7514.6 is added to the Government Code, to read:

7514.6.
 (a) Notwithstanding any other law, for employees first hired on or after January 1, 2013, a public employer shall not enter into a memorandum of understanding or other collective bargaining agreement that provides for defined postemployment health care benefits unless each employee pays at least 50 percent of the actuarially required contributions to fund those health care benefits.
(b) If the provisions of this section are in conflict with the provisions of a memorandum of understanding or other collective bargaining agreement, the memorandum of understanding or other collective bargaining agreement shall be controlling, except 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.
(c) For purposes of this section, the following definitions apply:
(1) “Public employee” means an officer, including those elected or appointed, or an employee of a public employer.
(2)  “Public employer” means:
(A) The state and every state entity, including, but not limited to, the Legislature, the courts, the California State University, and the University of California.
(B) Any political subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, charter city and county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, district, or other entity.

SEC. 2.

 Section 22870 of the Government Code is amended to read:

22870.
 (a) The state and each employee or annuitant shall contribute a portion of the cost of providing the benefit coverage afforded under the approved health benefit plan in which the employee or annuitant is enrolled.
(b) An annuitant is entitled to only one employer contribution. If more than one annuitant is receiving an allowance as the survivor of the same employee or annuitant, there shall be only one employer contribution with respect to all of those annuitants.
(c) The contribution of each employee and annuitant shall be the total cost per month of the benefit coverage afforded him or her under the health benefit plan or plans in which he or she is enrolled less the portion thereof to be contributed by the employer. The employer contribution for each employee or annuitant shall commence on the effective date of enrollment.
(d) The formulas for contributors pursuant to this article are subject to the prefunding requirements in Section 7514.6.

SEC. 3.

 Section 22890 of the Government Code is amended to read:

22890.
 (a) The contracting agency and each employee or annuitant shall contribute a portion of the cost of providing the benefit coverage afforded under the health benefit plan approved or maintained by the board in which the employee or annuitant may be enrolled.
(b) An annuitant is entitled to only one employer contribution. If more than one annuitant is receiving an allowance as the survivor of the same employee or annuitant, there shall be only one employer contribution with respect to all such annuitants.
(c) The contribution of each employee and annuitant shall be the total cost per month of the benefit coverage afforded him or her under the health benefit plan or plans in which he or she is enrolled less the portion thereof to be contributed by the employer. The employer contribution for each employee and annuitant shall commence on the effective date of enrollment.
(d) The formulas for contributors pursuant to this article are subject to the prefunding requirements in Section 7514.6.

SEC. 4.

 The Legislature finds and declares the following:
(a) To ensure the financial security of the University of California, it is necessary for this act to apply to the University of California.
(b) The statewide integrity and security of state and local government health care plans is a matter of statewide concern and not a municipal affair, as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this act shall apply to all cities, including charter cities.