BILL NUMBER: AB 2582 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 2, 2014
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 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)
(b) 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)
(c) An agreement reached pursuant to subdivision
(c) (b) 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
Credited Years of Percentage of Employer
Service Contribution
10 50
11 60
12 70
13 80
14 90
15 100
(e)
(d) An agreement reached pursuant to subdivision
(c) (b) 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)
(e) (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)
(f) 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).
(e). In the event that the memorandum of understanding
establishes a retroactive effective date, this section shall apply
only to prospective retirements.
(h)
(g) 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.