BILL NUMBER: AB 2582 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 21, 2014
INTRODUCED BY Assembly Member Bonta
( Coauthor: Assembly Member
Skinner )
FEBRUARY 21, 2014
An act to add Section 22902 to the Government Code, relating to
postemployment health benefits.
LEGISLATIVE COUNSEL'S DIGEST
AB 2582, as amended, Bonta. Public Employees' Medical and Hospital
Care Act: postemployment health benefits: the San Francisco Bay Area
Rapid Transit District.
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. Existing law requires accounts to
be maintained in the Public Employees' Contingency Reserve Fund to
consist of administrative costs required to be contributed by
contracting agencies and of health plan premiums paid by contracting
agencies, which are continuously appropriated for specified purposes.
This bill would authorize the San Francisco Bay Area Rapid Transit
District to make employer contributions for postretirement health
benefit contribution for postretirement health benefit coverage for
the district's unrepresented employees, including members of
the district board of directors, and members of any unit of
employees whose terms and conditions of employment are determined
through collective bargaining, employees who are
first hired on or after January 1, 2014. This bill would require the
employer contributions to be based on percentages associated with
the annuitant's credited years of service with the district, as
provided. Under this formulation, the employer contribution would be
50% for 10 years of credited service, increasing incrementally by 10%
each credited year of service, and reaching 100% if the annuitant
attained 15 years of credited service, with a specified exception for
those employees who retire for disability.
This bill would state that it is intended to have retroactive
effect and application to January 1, 2014.
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 22902 is added to the Government Code, to read:
22902. (a) For the purposes of this section, the term "district"
shall mean the San Francisco Bay Area Rapid Transit District.
(b) This section, if enacted into law after January 1, 2014, is
intended to have retroactive effect and application to January 1,
2014.
(c) Notwithstanding any other provision of this part, the district
may make contributions for postretirement health benefits for its
unrepresented employees, including members of the district board of
directors to the extent that they are eligible for contributions
under existing law, and members of any unit of employees whose terms
and conditions of employment are determined through collective
bargaining. Those contributions shall be subject to the following:
(1) Credited years of service that the employee worked with the
district.
(2) An agreement with all represented employees regarding
postretirement health coverage mutually agreed upon through
collective bargaining.
(3) Contributions for postretirement health benefits for the
district's unrepresented employees, including members of the district
board of directors to the extent that they are eligible for
contributions under existing law, may only be made in accordance with
the eligibility criteria and schedule below.
(d) An agreement reached pursuant to subdivision (c) shall provide
that employer contributions for postretirement health benefits for
employees shall be made in the following percentages for the
applicable credited years of service:
Credited Years of Percentage of Employer
Service Contribution
10 50
11 60
12 70
13 80
14 90
15 100
(e) An agreement reached pursuant to subdivision (c) shall
authorize full employer contributions for postretirement health
benefits for those employees who retire for disability with five
years of credited service with the district.
(f) (1) This section shall only apply to district employees
first hired on or after January 1, 2014, and to directors who
first serve as a director on or after January 1, 2014.
(2) This section shall apply to employees whose terms and
conditions of employment are determined through collective bargaining
only if the agreement is expressly incorporated by reference into,
or made a part of, a memorandum of understanding.
(g) This section is not applicable to any employee who retires
before the effective date of the memorandum of understanding
referenced in paragraph (2) of subdivision (f). In the event that the
memorandum of understanding establishes a retroactive effective
date, this section shall apply only to prospective retirements.
(h) The district shall provide, in the manner prescribed by the
board, a notification of each agreement established pursuant to this
section or personnel action incorporating or applying this section,
and any additional information necessary to implement this section.