22944.5.
(a) (1) The state and employees in State Bargaining Unit 2, 7, 8, 9, 10, 13, 18, or 19 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 Units 6 and 16 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.
(4) The state and employees in State Bargaining Unit 1, 3, 4, 5, 11, 12, 14, 15, 17, 20, or 21 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, 2020.
(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.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning with the July 2020 pay period and ending on June 30, 2022. The employer’s monthly contribution for prefunding other post employment benefits will continue in the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C).
(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.
(D) Effective July 1, 2020, the employer and employee contribution percentages will be increased or decreased to maintain a 50-percent cost sharing of the actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined total normal costs increase or decrease by more than one-half of 1 percent from the total normal cost contribution percentages in effect on July 1, 2019. The increase or
decrease to the employer or employee contribution shall not exceed 0.5 percent per year.
(E) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraph (D), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2022. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 and 2021–22 fiscal years, as described in subparagraph (D).
(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.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning on July 1, 2020, and ending on June 30, 2022. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C).
(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, 1.5 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.5 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(D) Effective July 1, 2020, an additional 1.1 percent for a total employee contribution of 4.6 percent of pensionable compensation.
(E) The employees’ monthly contribution for prefunding other postemployment benefits for the
2020–21 fiscal year, as described in subparagraph (D), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (D).
(6) The employees in State Bargaining Unit 2 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 0.6 percent for a total employee contribution of 1.3 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 0.7 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2022. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C).
(7) 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.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2022. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 and 2021–22 fiscal years, as described in
subparagraph (C).
(8) The employees in State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 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, 2018, 1.2 percent of pensionable compensation.
(B) Effective July 1, 2019, an additional 1.1 percent for a total employee contribution of 2.3 percent of pensionable compensation.
(C) Effective July 1, 2020, an additional 1.2 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as
described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning on July 1, 2020, and ending on June 30, 2022. The employer’s monthly contribution for prefunding other post employment benefits will continue in the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C).
(9) The employees in State Bargaining Unit 8 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, 1.5 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.5 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent
for a total employee contribution of 4.4 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (C).
(10) The employees in State Bargaining Unit 13 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 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 3.9 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning with the August 2020 pay period and ending on June 30, 2022. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 and 2021–22 fiscal years as described in subparagraph (C).
(11) The employees in State
Bargaining Unit 18 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 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(D) After July 1, 2019, the employer and employee contribution percentages will be adjusted based on actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined total normal
costs increase by more than 0.5 percent from the total normal cost contribution percentages in effect at the time. Commencing no sooner than July 1, 2021, and on July 1 of each fiscal year thereafter, if it is determined that an adjustment to the contribution rate is necessary, the employer and employee contribution percentages will be increased to maintain a 50-percent cost sharing of actuarially determined total normal costs. The increase to the employer or employee contribution in any given fiscal year shall not exceed 0.5 percent per year.
(E) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraphs (C) and (D), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2022. The employer’s monthly contribution for prefunding other postemployment
benefits will continue in the 2020–21 and 2021–22 fiscal years, as described in subparagraphs (C) and (D).
(12) The employees in State Bargaining Unit 19 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, 1.0 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other
postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning with the July 2020 pay period and ending on June 30, 2022. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 and 2021–22 fiscal years, as described in subparagraph (C).
(13) The employees in State Bargaining Unit 16 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 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.4 percent for a total employee contribution of 1.4 percent of pensionable compensation.
(C) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraph (B), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2022. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 and 2021–22 fiscal years, as described in subparagraph (B).
(14) Notwithstanding Section 22944.3 of the Government Code, the state and employees in State Bargaining Unit 5 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined total normal costs for both employer and employees by July 1, 2020.
(A) The employees in State Bargaining Unit 5
shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(B) Effective July 1, 2020, 0.0 percent of pensionable compensation for employees and 3.4 percent of pensionable statutory salary increases redirected to prefund OPEB paid for by the employer.
(C) After July 1, 2020, the employer and employee contribution percentages will be adjusted based on actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined total normal costs increase or decrease by more than 0.5 percent from the total normal cost contribution percentages in effect at the time. Commencing no sooner than July 1, 2021, and on July 1 of each fiscal year thereafter, if it is determined that an adjustment to the contribution rate is necessary,
the employer and employee contribution percentages will be increased or decreased to maintain a 50-percent cost sharing of actuarially determined total normal costs. The increase or decrease to the employer or employee contribution in any given fiscal year shall not exceed 0.5 percent per year.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years, as described in subparagraphs (B) and (C), is suspended and shall not be withheld from employees’ salaries beginning with the July 2020 pay period and ending on June 30, 2022. The employer’s monthly contribution for prefunding other postemployment benefits will also be suspended during the 2020–21 and 2021–22 fiscal years, as described in subparagraphs (B) and (C), beginning with the July 2020 pay period and ending on June 30, 2022.
(E) Effective July 1, 2020, the
statutory increase redirected as a result of subdivision (a) of Section 19827 shall count towards the employee contribution percentage when determining the 50-percent cost sharing of actuarially determined total normal costs.
(F) Effective July 1, 2022, if the Director of Finance does not restore the state and employee share of other postemployment benefits, the employer and employee contributions shall be restored and the parties shall incorporate the 3.4 percent employee share of pensionable compensation into the salary survey conducted pursuant to Section 19827 of Government Code. If projected state revenues continue to be insufficient to fully fund existing statutory and constitutional obligations, existing fiscal policy, and the aforementioned other postemployment benefits contributions, the employee and employer other postemployment benefits contributions and inclusion of the 3.4 percent employee share for other postemployment benefits
into the salary survey shall become effective on July 1, 2023. Determination of funding availability relative to this section shall be at the sole discretion of the Director of Finance.
(G) Upon the other postemployment benefits contributions being restored pursuant to subparagraph (F), the employees in State Bargaining Unit 5 and the state shall make contributions to prefund retiree health care based on the following schedule:
(i) Effective July 1, 2022, or July 1, 2023, employees shall contribute 1.1 percent of pensionable compensation and the employer shall contribute 5.7 percent of pensionable compensation, for a total of 6.8 percent pensionable compensation.
(ii) Effective July 1, 2023, or July 1, 2024, employees shall contribute 2.3 percent of pensionable compensation and the employer shall contribute 4.5
percent of pensionable compensation, for a total of 6.8 percent pensionable compensation.
(iii) Effective July 1, 2024, or July 1, 2025, employees shall contribute 3.4 percent of pensionable compensation and the employer shall contribute 3.4 percent of pensionable compensation, for a total of 6.8 percent 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 the employee’s beneficiary or survivor.
(e) If the provisions of this section are in conflict with the provisions of a
memorandum of understanding or addenda, or both, reached pursuant to Section 3517.5, that memorandum of understanding or addenda, or both, shall be controlling without further legislative action, except that if those provisions of the memorandum of understanding or addenda 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.
(g) (1) With the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2020, the Director of the Department of Human Resources may establish the total employee contribution to prefund
retiree health care as a percentage of pensionable compensation for the following:
(A) A state employee who is not related to a bargaining unit described in subdivision (a) and who is excepted from the definition of “state employee” in subdivision (c) of Section 3513.
(B) An officer or employee of the executive branch of state government who is not a member of the civil service.
(2) An employee or officer to whom this subdivision applies shall make contributions to prefund retiree health care based on the percentages established in paragraph (1), and the state shall match the contributions.