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 benefitbegin delete contribution for postretirement health benefitend delete coverage for the district’s 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.
end deleteVote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 22902 is added to the Government Code,
2to read:
(a) For the purposes of this section, the term “district”
4shall mean the San Francisco Bay Area Rapid Transit District.
5(b) This section, if enacted into law after January 1, 2014, is
6intended to have retroactive effect and application to January 1,
72014.
8 8(c)
end delete
9begin insert(b)end insert Notwithstanding any other provision of this part, the district
10may make contributions for postretirement health benefits for its
11unrepresented employees, including members of the district board
12of directors to the extent that they are eligible for contributions
13under existing law, and members of any unit of employees whose
14terms and conditions of employment are determined through
P3 1collective bargaining. Those contributions shall be subject to the
2following:
3(1) Credited years of service that the employee worked with the
4district.
5(2) An agreement with all represented employees regarding
6postretirement health coverage mutually agreed upon through
7collective bargaining.
8(3) Contributions for
postretirement health benefits for the
9district’s unrepresented employees, including members of the
10district board of directors to the extent that they are eligible for
11contributions under existing law, may only be made in accordance
12with the eligibility criteria and schedule below.
13 13(d)
end delete
14begin insert(c)end insert An agreement reached pursuant to subdivisionbegin delete (c)end deletebegin insert (b)end insert shall
15provide that employer contributions for postretirement health
16benefits for
employees shall be made in the following percentages
17for the applicable credited years of service:
18
| Credited Years of Service | Percentage of Employer Contribution |
| 10 | 50 |
| 11 | 60 |
| 12 | 70 |
| 13 | 80 |
| 14 | 90 |
| 15 | 100 |
begin insert
| begin insert
Credited Years of Service end insert | begin insert
Percentage of Employer Contribution end insert |
| begin insert
10 end insert | begin insert
50 end insert |
| begin insert
11 end insert | begin insert
60 end insert |
| begin insert
12 end insert | begin insert
70 end insert |
| begin insert
13 end insert | begin insert
80 end insert |
| begin insert
14 end insert | begin insert
90 end insert |
| begin insert
15 end insert | begin insert
100 end insert |
| begin insert end insert | begin insert end insert |
27 37(e)
end delete
38begin insert(d)end insert An agreement reached pursuant to subdivisionbegin delete (c)end deletebegin insert (b)end insert shall
39authorize full employer contributions for postretirement health
P4 1benefits for those employees who retire for disability with five
2years of credited service with the district.
31 3(f)
end delete
4begin insert(e)end insert (1) This section shall only apply to district employees first
5hired on or after January 1, 2014, and to directors who first serve
6as a director on or after January 1, 2014.
7(2) This section shall apply to employees whose terms and
8conditions of employment are determined through collective
9bargaining only if the agreement is expressly incorporated by
10reference into, or made a part of, a memorandum of understanding.
38 11(g)
end delete
12begin insert(f)end insert This section is not applicable to any employee who retires
13before the effective date of the memorandum of understanding
14referenced in paragraph (2) of subdivisionbegin delete (f).end deletebegin insert (e).end insert In the event that
15the memorandum of understanding establishes a retroactive
16effective date, this section shall apply only to prospective
17retirements.
3 18(h)
end delete
19begin insert(g)end insert The district shall provide, in the manner prescribed by the
20board, a notification of
each agreement established pursuant to
21this section or personnel action incorporating or applying this
22section, and any additional information necessary to implement
23this section.
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