Bill Text: CA AB1144 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Public Employees' Medical and Hospital Care Act: City of

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-09-06 - Chaptered by Secretary of State - Chapter 244, Statutes of 2013. [AB1144 Detail]

Download: California-2013-AB1144-Amended.html

---

BILL NUMBER: AB 1144	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 15, 2013

INTRODUCED BY   Assembly Member Hall

                        FEBRUARY 22, 2013

   An act to add Section  22900.1   22893.1
 to the Government Code, relating to public employee benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1144, as amended, Hall. Public Employees' Medical and Hospital
Care Act:  City of Carson.   contracting
agencies. 
   The Public Employees' Medical and Hospital Care Act (PEMHCA)
authorizes the Board of Administration of the Public Employees'
Retirement System to contract with carriers for health benefit plans
for employees and annuitants, as defined. Existing law requires an
agency contracting for coverage under PEMHCA and each employee or
annuitant to contribute a portion of the cost of providing the
benefit coverage afforded under the health benefit plan in which the
employee or annuitant may be enrolled and prescribes various
schedules for employer payments and requirements in relation to those
payments. 
   This bill would authorize a contracting agency, the employees'
exclusive representative, and unrepresented employees to agree that
the employer contribution for postretirement health coverage be
subject to specified factors, including that the contributions be
subject to a mutually agreed upon memorandum of understanding that is
not subject to impasse procedures. The bill would prohibit a
memorandum of understanding entered into in this context from
applying to retired employees. The bill would prohibit an employer
contribution for an employee with less than 5 years of credited
service with the contracting agency.  
   This bill would require the employer contribution for
postretirement health benefit coverage for an employee of the City of
Carson to be based on percentages associated with the annuitant's
credited years of service. The bill would provide a formulation for
the employer contribution that would reach 100% when the employee
attains 10 years of credited service, with specified exceptions. The
bill would define credited service and would require that at least 5
years of credited service to have been performed with the City of
Carson. The bill would require that the employer provide any
information requested by the board that the board deems necessary to
implement the section. The bill would except from the formulation
annuitants who have retired for disability and annuitants who have 10
or more years of service entirely with the city. The bill would
require the board to establish application procedures and eligibility
criteria to implement this provision. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 22893.1 is added to the 
 Government Code  , to read:  
   22893.1.  (a) Notwithstanding any other provision of this part,
the contracting agency, the exclusive representative of employees of
the agency, and unrepresented employees of the agency may agree that
the employer contribution for postretirement health coverage shall be
subject to the following:
   (1) Credited years of service that the employee worked with the
contracting agency.
   (2) A memorandum of understanding regarding postretirement health
coverage mutually agreed upon through collective bargaining. This
issue may not be subject to the impasse procedures set forth in
Article 9 (commencing with Section 3548) of Chapter 10.7 of Division
4 of Title 1.
   (3) The employer shall certify to the board, in the case of an
employee not represented by a bargaining unit, that there is not an
applicable memorandum of understanding.
   (b) A memorandum of understanding regarding employer contributions
entered into pursuant to the authorization provided by this section
shall not apply to an employee who retired before the effective date
of the memorandum of understanding and, to the extent a memorandum of
understanding purports to apply to a employee who is retired, those
provisions shall be without effect.
   (c) An agreement reached pursuant to subdivision (a) shall not be
valid if it provides an employer contribution for an employee with
less than five years of credited service with the contracting agency.

   (d) The contracting agency shall provide, in the manner prescribed
by the board, a notification of the agreement established pursuant
to this section and any additional information necessary to implement
this section.  
  SECTION 1.    Section 22900.1 is added to the
Government Code, to read:
   22900.1.  (a) Notwithstanding any other provision of this part,
the percentage of employer contribution payable for postretirement
health benefits for an employee of the City of Carson, California,
except as provided in subdivision (b), shall be based on the employee'
s completed years of credited service, provided that the City of
Carson shall not pay an employer contribution for the first five
years of that credited service, and shall pay thereafter as shown in
the following table:
Credited Years of Service           Percentage of
Employer Contribution
  5 ........................................... 50
  6 ........................................... 60
  7 ........................................... 70
  8 ........................................... 80
  9 ........................................... 90
  10 ......................................... 100


   The application of this subdivision shall be subject to the
following:
   (1) The employer contribution with respect to each annuitant shall
be adjusted by the employer each year by resolution of the City of
Carson City Council, and that resolution shall be filed with the
board annually.
   (2) The employer shall certify to the board, in the case of
employees not represented by a bargaining unit, that there is not an
applicable memorandum of understanding.
   (3) The credited service of an annuitant for the purpose of
determining the percentage of employer contributions applicable under
this section shall mean state service as defined in Section 20069,
except that at least five years of credited service shall have been
performed with the City of Carson.
   (4) The employer shall provide the board any information requested
that the board determines is necessary to implement this section.
   (b) Notwithstanding subdivision (a), the contribution payable by
the employer subject to this section shall be equal to 100 percent of
the amount established pursuant to paragraph (1) of subdivision (a)
on behalf of any annuitant who either:
   (1) Retired for disability.
   (2) Retired for service with 10 or more years of service credit
entirely with that employer, regardless of the number of days after
separation from employment. The contribution payable by the employer
under this paragraph shall be paid only if it is greater than, and
made in lieu of, a contribution payable to the annuitant by another
employer under this part. The board shall establish application
procedures and eligibility criteria to implement this paragraph.