Amended
IN
Assembly
August 29, 2016 |
Amended
IN
Assembly
August 19, 2016 |
Amended
IN
Assembly
June 12, 2016 |
Amended
IN
Assembly
May 25, 2016 |
Introduced by Committee on Budget and Fiscal Review |
January 07, 2016 |
(2)
(3)
(4)
(5)
(6)
(7)
Years of Service Contribution Credited Years of Service | Credited Years Percentage Percentage of Employer Contribution |
15
........................
| 50 |
16
........................
| 55 |
17
........................
| 60 |
18
........................
| 65 |
19
........................
| 70 |
20
........................
| 75 |
21
........................
| 80 |
22
........................
| 85 |
23
........................
| 90 |
24
........................
| 95 |
25 or more
........................
| 100 |
Years of Service Contribution Credited Years of Service | Credited Years Percentage Percentage of Employer Contribution |
15
........................
| 50 |
16
........................
| 55 |
17
........................
| 60 |
18
........................
| 65 |
19
........................
| 70 |
20
........................
| 75 |
21
........................
| 80 |
22
........................
| 85 |
23
........................
| 90 |
24
........................
| 95 |
25 or more
........................
| 100 |
Credited Years of Service | Percentage of Employer Contribution |
15
........................
| 50 |
16
........................
| 55 |
17
........................
| 60 |
18
........................
| 65 |
19
........................
| 70 |
20
........................
| 75 |
21
........................
| 80 |
22
........................
| 85 |
23
........................
| 90 |
24
........................
| 95 |
25 or more
........................
| 100 |
Credited Years of Service | Percentage of Employer Contribution |
15
........................
| 50 |
16
........................
| 55 |
17
........................
| 60 |
18
........................
| 65 |
19
........................
| 70 |
20
........................
| 75 |
21
........................
| 80 |
22
........................
| 85 |
23
........................
| 90 |
24
........................
| 95 |
25 or more
........................
| 100 |
The Legislature finds and declares that the purposes of this act is to approve the agreement entered into by the state employer and State Bargaining Unit 7 pursuant to Section 3517.5 of the Government Code.
The provisions of the memorandum of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 7, dated June 9, 2016, and that require the expenditure of funds, are hereby approved for the purposes of subdivision (b) of Section 3517.6 of the Government Code.
The provisions of the memorandum of understanding approved in Section 2 of this act that require the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature. If funds for these provisions are not specifically appropriated by the Legislature, either the state employer or the affected employee organization may reopen negotiations on all or part of the memorandum of understanding.
Notwithstanding Section 3517.6 of the Government Code, the provisions of the memorandum of understanding included in Section 2 of this act that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.
The sum of thirty-eight million six hundred eleven thousand dollars ($38,611,000) is hereby appropriated for State Bargaining Unit 7 for expenditure in the 2016–17 fiscal year in augmentation of, and for the purpose of, state employee compensation, as provided in Items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget Act of 2016, in accordance with the following schedule:
(a)Nine million six hundred sixty-seven thousand dollars ($9,667,000) from the General Fund in augmentation of Item 9800-001-0001.
(b)Nineteen million three hundred ninety-two thousand dollars ($19,392,000) from unallocated special funds in augmentation of Item 9800-001-0494.
(c)Nine million five hundred fifty-two thousand dollars ($9,552,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988.
(a)Notwithstanding Section 13340, for the 2017–18 fiscal year, if the Budget Act of 2017 is not enacted by July 1, 2017, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2019, inclusive) there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by an above memorandum of understanding until the Budget Act of 2017 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by an above memorandum of understanding for work performed between July 1, 2017, of the 2017–18 fiscal year and the enactment of the Budget Act of 2017.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2019, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units shall be at a rate consistent with the applicable memorandum of understanding referenced above.
(c)Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2017, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2017 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2019, inclusive) memoranda of understanding. Notwithstanding Section 3517.8, this section shall not apply after the terms of the memoranda of understanding have expired. For purposes of this section, the memoranda of understanding for State Bargaining Unit 7 and State Bargaining Unit 12 expire on July 1, 2019.
(a)Notwithstanding Section 13340, for the 2018–19 fiscal year, if the Budget Act of 2018 is not enacted by July 1, 2018, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2019, inclusive) there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by an above memorandum of understanding until the Budget Act of 2018 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by an above memorandum of understanding for work performed between July 1, 2018, of the 2018–19 fiscal year and the enactment of the Budget Act of 2018.
(b)If the memoranda of understanding entered into between the state employer and State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2019, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units shall be at a rate consistent with the applicable memorandum of understanding referenced above.
(c)Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2018, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2018 for each affected department.
(d)This section shall only apply to an employee covered by the terms of the State Bargaining Unit 7 (effective July 2, 2016, to July 1, 2019, inclusive) and State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2019, inclusive) memoranda of understanding. Notwithstanding Section 3517.8, this section shall not apply after the terms of the memoranda of understanding have expired. For purposes of this section, the memoranda of understanding for State Bargaining Unit 7 and State Bargaining Unit 12 expire on July 1, 2019.
(a)The employer contribution for each annuitant enrolled in a basic plan shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an employee or annuitant enrolled for self-alone, during the benefit year to which the formula is applied, for the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during
the previous benefit year.
(b)The employer contribution for each annuitant enrolled in a Medicare health benefit plan in accordance with Section 22844 shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an annuitant enrolled in a Medicare health benefit plan for self-alone, during the benefit year to which the formula is applied, for the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year.
If the annuitant is eligible for Medicare Part A, with or without cost, and Medicare Part B, regardless of whether the annuitant is actually enrolled in Medicare Part A or Part B, the employer contribution shall not exceed the amount calculated under this subdivision.
(c)This section applies to:
(1)A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2)A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3)A state employee
represented by State Bargaining Unit 6, 7, or 12 who is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(4)A state employee related to State Bargaining Unit 6, 7, or 12 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2017.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(d)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5 or Chapter 12 (commencing with Section 3560) of Division 4 of Title 1, the
memorandum of understanding shall be controlling without further legislative action, except that if those provisions require the expenditure of funds, the provisions may not become effective unless approved by the Legislature.
(a)Notwithstanding Sections 22870, 22871, 22873, and 22874, a state employee, defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 6 or 7 shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 years of state service at the time of retirement.
(b)The percentage of the employer contribution payable for postretirement health benefits for an employee subject to this section shall be based on the completed years of credited state service at retirement as shown in the following table:
Credited Years | Percentage |
15 | 50 |
16 | 55 |
17 | 60 |
18 | 65 |
19 | 70 |
20 | 75 |
21 | 80 |
22 | 85 |
23 | 90 |
24 | 95 |
25 or more | 100 |
(c)This section shall apply only to state employees that retire for service. For purposes of this section, “state service” means service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
(d)This section does not apply to:
(1)Former state employees previously employed before January 1, 2017, who return to state employment on or after January 1, 2017.
(2)State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 6 or 7 on or after January 1, 2017.
(3)State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4)State employees hired after January 1, 2017, who are first represented by a
State Bargaining Unit other than Bargaining Unit 6 or 7, who later become represented by State Bargaining Unit 6 or 7.
(e)Notwithstanding Section 22875, this section shall also apply to a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(a)The board shall pay monthly to an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan under this part the amount of the Medicare Part B premiums, exclusive of penalties, except as provided in Section 22831. This payment may not exceed the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. No payment may be made in any month if the difference is less than one dollar ($1).
(b)This section shall be applicable only to state employees, annuitants who retired while state employees, and the family members of those persons.
(c)With respect to an annuitant, the board shall pay to the annuitant the amount required by this section from the same source from which his or her allowance is paid. Those amounts are hereby appropriated monthly from the General Fund to reimburse the board for those payments.
(d)There is hereby appropriated from the appropriate funds the amounts required by this section to be paid to active state employees.
(e)This section does not apply to:
(1)A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2)A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3)A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 6, 7, or 12.
(4)A state employee related to State Bargaining Unit 6, 7, or 12 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(5)A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(a)(1)The state and employees in State Bargaining Unit 7, 9, 10, or 12 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2019.
(2)The state and employees in State Bargaining Unit 6 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2018.
(3)The state and employees in the judicial branch shall prefund retiree health care, with the
goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2017.
(b)(1)The employees in State Bargaining Unit 9 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 0.5 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 0.5 percent for a total employee contribution of 1.0 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(2)The employees in
State Bargaining Unit 10 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 0.7 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 0.7 percent for a total employee contribution of 1.4 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 2.8 percent of pensionable compensation.
(3)The employees in State Bargaining Unit 6 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective
July 1, 2016, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2017, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C)Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(4)The state employees in the judicial branch shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2016, 1.5 percent of pensionable compensation.
(B)Effective July 1, 2017, up to an additional 1.5 percent for a total employee contribution of up to 3.0 percent of
pensionable compensation. The additional amount shall be determined by the Director of Finance no later than April 1, 2017, based on the actuarially determined normal costs identified in the state valuation.
(C)This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(5)The employees in State Bargaining Unit 12 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 1.9 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 3.3 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 4.6 percent of pensionable compensation.
(6)The employees in State Bargaining Unit 7 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A)Effective July 1, 2017, 1.3 percent of pensionable compensation.
(B)Effective July 1, 2018, an additional 1.4 percent for a total employee
contribution of 2.7 percent of pensionable compensation.
(C)Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(c)This section only applies to employees who are eligible for health benefits, including permanent intermittent employees.
(d)Contributions paid pursuant to this section shall be deposited in the Annuitants’ Health Care Coverage Fund and shall not be refundable under any circumstances to an employee or his or her beneficiary or survivor.
(e)If the provisions of this section are in conflict with the provisions of a memorandum of
understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(f)This section shall also apply to a state employee related to a bargaining unit described in subdivision (a) who is excepted from the definition of “state employee” in subdivision (c) of Section 3513.
(a)Notwithstanding Sections 22953, 22957, and 22958, the following employees shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 or more years of state service, as defined by this section, at the time of retirement:
(1)A state employee, as defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and is represented by State Bargaining Unit 6, 7, or 12.
(2)A state employee related to State Bargaining Unit 6, 7, or 12 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(b)The percentage of the employer contribution payable for postretirement dental care benefits for an employee subject to this section shall be based on the funding provision of the plan and the completed years of credited state service at retirement as shown in the following table:
Credited Years | Percentage of Employer |
15 | 50 |
16 | 55 |
17 | 60 |
18 | 65 |
19 | 70 |
20 | 75 |
21 | 80 |
22 | 85 |
23 | 90 |
24 | 95 |
25 or more | 100 |
(c)This section shall apply only to state employees that retire for service. For purposes of this section, “state service” means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d)This section does not apply to:
(1)Former state employees
previously employed prior to January 1, 2017, who return to state employment on or after January 1, 2017.
(2)State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 6, 7, or 12 on or after January 1, 2017.
(3)State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4)State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 6, 7, or 12, who later become represented by State Bargaining Unit 6, 7, or 12.
(e)In those cases where the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elected officers of that public agency may not be credited as state service for the purposes of this section unless the former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee dental benefits that were vested at the time that the function and the related personnel were assumed by the state, and the Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement dental benefit costs of those personnel. For
noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under this section.
This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.