BILL NUMBER: AB 1144 CHAPTERED BILL TEXT CHAPTER 244 FILED WITH SECRETARY OF STATE SEPTEMBER 6, 2013 APPROVED BY GOVERNOR SEPTEMBER 6, 2013 PASSED THE SENATE AUGUST 19, 2013 PASSED THE ASSEMBLY AUGUST 22, 2013 AMENDED IN SENATE JUNE 19, 2013 AMENDED IN ASSEMBLY APRIL 29, 2013 AMENDED IN ASSEMBLY APRIL 15, 2013 INTRODUCED BY Assembly Member Hall FEBRUARY 22, 2013 An act to add Section 22893.1 to the Government Code, relating to public employee benefits. LEGISLATIVE COUNSEL'S DIGEST AB 1144, Hall. Public Employees' Medical and Hospital Care Act: City of Carson. 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, for an employee hired on or after January 1, 2014, would require the employer contribution for postretirement health benefit coverage for an employee of the City of Carson to be based on specified percentages associated with the employee's credited years of service, which would reach 100% when the employee attains 10 years of credited service. The bill would define credited service as service performed with the City of Carson. The bill would require that the employer contribution with respect to each employee be mutually agreed upon through collective bargaining, as specified, except for an unrepresented employee, for whom the employer contribution would be established by a city council resolution. The bill would require that the employer provide any information requested by the board that the board deems necessary to implement the section. 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 percentage of employer contribution payable for postretirement health benefits for an employee of the City of Carson, California, 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) (A) The employer contribution with respect to each annuitant shall be mutually agreed upon through collective bargaining by the City of Carson and the exclusive representatives of employees of the city. The employer may adjust the amount from time to time through a collectively bargained memorandum of understanding. Changes to the employer contribution shall be ratified by a resolution passed by the city council of the City of Carson and that resolution shall be filed with the board. The employer contribution established by this paragraph shall not be less than the adjusted employer contribution required by subdivision (b) of Section 22892. (B) In the case of employees not represented by a bargaining unit, the employer contribution with respect to each annuitant shall be determined pursuant to a resolution passed by a majority of the city council of the City of Carson and that resolution shall be filed with the board. (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 credited service 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) This section applies only to the City of Carson and only with regard to an employee of the city who is first hired on or after January 1, 2014. ____ CORRECTIONS Date--Page 1. ____