Bill Text: CA SB1202 | 2013-2014 | Regular Session | Introduced

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Bill Title: Public Employees' Medical and Hospital Care Act: postemployment health benefits: employer contributions:

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-03-06 - Referred to Com. on P.E. & R. [SB1202 Detail]

Download: California-2013-SB1202-Introduced.html

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BILL NUMBER: SB 1202	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hueso

                        FEBRUARY 20, 2014

   An act to add Section 22893.2 to the Government Code, relating to
postemployment health benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1202, as introduced, Hueso. Public Employees' Medical and
Hospital Care Act: postemployment health benefits: employer
contributions: City of Indio.
   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. Existing law provides an optional vesting
schedule, for contracting agencies, that links the employer
contribution, as specified, to percentages associated with an
employee's credited years of service. Under this formulation, the
employer contribution for the contracting agency reaches 100% of a
specified amount when the employee attains 20 years of credited
service, with certain exceptions.
   This bill would require the employer contributions for
postretirement health benefit contribution for postretirement health
benefit coverage for an annuitant of the City of Indio who is first
hired on or after October 1, 2013, to be based on specified
percentages associated with the annuitant's credited years of service
performed with the city, provided that the city not pay an employer
contribution for the first 10 years of that credited service. Under
this formulation, the employer contribution would be 50% for 10 years
of credited service, increasing incrementally by 5% for each
additional credited year of service, and reaching 100% if the
annuitant attained 20 years of credited service. The bill would
require the employer contribution with respect to each annuitant to
be mutually agreed upon through collective bargaining by the City of
Indio and the exclusive representatives of employees of the city and
would allow the employer to adjust the amount from time to time
through a collectively bargained memorandum of understanding. If the
employees are not represented by a recognized bargaining unit, the
employer contribution would be determined by a resolution passed by
the city council, as specified.
   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 22893.2 is added to the Government Code, to
read:
   22893.2.  (a) (1) Notwithstanding any other provision of this
part, the percentage of employer contribution payable for
postretirement health benefits for an employee of the City of Indio
first hired on or after October 1, 2013, shall be based on the
employee's completed years of credited service at retirement,
provided that the City of Indio shall not pay an employer
contribution for the first 10 years of that credited service, and
shall pay thereafter as shown in the following table:
Credited Years of        Percentage of Employer
Service                  Contribution
10                       50
11                       55
12                       60
13                       65
14                       70
15                       75
16                       80
17                       85
18                       90
19                       95
20 or more               100


   (2) The application of this section shall be subject to the
following provisions:
   (A) The employer contribution with respect to each annuitant shall
be mutually agreed upon through collective bargaining by the City of
Indio 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 Indio and that resolution shall be filed
with the board. The employer contribution established by this
section shall not be less than the adjusted employer contributions
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 Indio and that resolution shall be filed with
the board.
   (3) The City of Indio 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.
   (4) 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
Indio.
   (5) The City of Indio 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 Indio and only with
regard to an employee of the city who is first hired on or after
October 1, 2013.