Existing law requires the Board of Administration of the Public Employees’ Retirement System to administer the Public Employees’ Medical and Hospital Care Act. Existing law permits a contracting agency to elect to be subject to the act for its employees and annuitants, provided that the contracting agency and each employee or annuitant 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. Existing law specifies that the employer contribution of a contracting agency begins on the effective date of enrollment and is the amount fixed from time to time by resolution of the governing body of the agency.

This bill would declare the intent of the Legislature to enact legislation that would enable Placer County and a collective bargaining unit, by agreement in a memorandum of understanding, to permit the county, a contracting agency under the Public Employees’ Medical and Hospital Care Act, to make an employer contribution for employees first hired on or after the effective date of the memorandum of understanding at a rate that may differ from the employer contribution rate for current employees and annuitants.