Article 8. Contracting Agency Contributions of California Government Code >> Division 5. >> Title 2. >> Part 5. >> Chapter 1. >> Article 8.
(a) The contracting agency and each employee or annuitant
shall 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.
(b) An annuitant is entitled to only one employer contribution. If
more than one annuitant is receiving an allowance as the survivor of
the same employee or annuitant, there shall be only one employer
contribution with respect to all such annuitants.
(c) The contribution of each employee and annuitant shall be the
total cost per month of the benefit coverage afforded him or her
under the health benefit plan or plans in which he or she is enrolled
less the portion thereof to be contributed by the employer. The
employer contribution for each employee and annuitant shall commence
on the effective date of enrollment.
(a) The employer contribution of a contracting agency shall
begin on the effective date of enrollment and shall be the amount
fixed from time to time by resolution of the governing body of the
agency. The resolution shall be filed with the board and the
contribution amount shall be effective on the first day of the second
month following the month in which the resolution is received by the
system.
(b) (1) The employer contribution shall be an equal amount for
both employees and annuitants, but may not be less than the
following:
(A) Prior to January 1, 2004, sixteen dollars ($16) per month.
(B) During calendar year 2004, thirty-two dollars and twenty cents
($32.20) per month.
(C) During calendar year 2005, forty-eight dollars and forty cents
($48.40) per month.
(D) During calendar year 2006, sixty-four dollars and sixty cents
($64.60) per month.
(E) During calendar year 2007, eighty dollars and eighty cents
($80.80) per month.
(F) During calendar year 2008, ninety-seven dollars ($97) per
month.
(2) Commencing January 1, 2009, the employer contribution shall be
adjusted annually by the board to reflect any change in the medical
care component of the Consumer Price Index and shall be rounded to
the nearest dollar.
(c) A contracting agency may, notwithstanding the equal
contribution requirement of subdivision (b), establish a lesser
monthly employer contribution for annuitants than for employees,
provided that the monthly contribution for annuitants is annually
increased to equal an amount not less than the number of years that
the contracting agency has been subject to this subdivision
multiplied by 5 percent of the current monthly employer contribution
for employees, until the time that the employer contribution for
annuitants equals the employer contribution paid for employees. This
annual adjustment to the minimum monthly employer contribution for an
annuitant as authorized by this subdivision shall not exceed one
hundred dollars ($100). This subdivision shall only apply to agencies
that first become subject to this part on or after January 1, 1986.
(a) Notwithstanding Section 22892, the percentage of
employer contribution payable for postretirement health benefits for
an employee of a contracting agency subject to this section shall,
except as provided in subdivision (b), be based on the member's
completed years of credited state service at retirement as shown in
the following table:
Credited Percentage of
Years Employer
of 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
This subdivision shall apply only to employees who retire for
service and are first employed after this section becomes applicable
to their employer, except as otherwise provided in paragraph (6). The
application of this subdivision shall be subject to the following
provisions:
(1) The employer contribution with respect to each annuitant shall
be adjusted by the employer each year. Those adjustments shall be
based upon the principle that the employer contribution for each
annuitant may not be less than the amount equal to 100 percent of the
weighted average of the health benefit plan premiums for an employee
or annuitant enrolled for self-alone, during the benefit year to
which the formula is applied, for the four health benefit plans that
had the largest state enrollment, excluding family members, during
the previous benefit year. For each annuitant with enrolled family
members, the employer shall contribute an additional 90 percent of
the weighted average of the additional premiums required for
enrollment of those family members, during the benefit year to which
the formula is applied, in the four health benefit plans that had the
largest state enrollment, excluding family members, during the
previous benefit year. Only the enrollment of, and premiums paid by,
state employees and annuitants enrolled in basic health benefit plans
shall be counted for purposes of calculating the employer
contribution under this section.
(2) The employer shall have, in the case of employees represented
by a bargaining unit, reached an agreement with that bargaining unit
to be subject to this section.
(3) 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.
(4) The credited service of an employee for the purpose of
determining the percentage of employer contributions applicable under
this section shall mean state service as defined in Section 20069,
except that at least five years of service shall have been performed
entirely with that employer.
(5) The employer shall provide the board any information requested
that the board determines is necessary to implement this section.
(6) The employer may, once each year without discrimination, allow
all employees who were first employed before this section became
applicable to the employer to individually elect to be subject to the
provisions of this section, and the employer shall notify the board
which employees have made that election.
(b) Notwithstanding subdivision (a), the contribution payable by
an employer subject to this section shall be equal to 100 percent of
the amount established pursuant to paragraph (1) of subdivision (a)
on behalf of any annuitant who either:
(1) Retired for disability.
(2) Retired for service with 20 or more years of service credit
entirely with that employer, regardless of the number of days after
separation from employment. The contribution payable by an employer
under this paragraph shall be paid only if it is greater than, and
made in lieu of, a contribution payable to the annuitant by another
employer under this part. The board shall establish application
procedures and eligibility criteria to implement this paragraph.
(c) This section does not apply to any contracting agency, its
employees, or annuitants unless and until the agency files with the
board a resolution of its governing body electing to be so subject.
The resolution shall be adopted by a majority vote of the governing
body and shall be effective at the time provided in board
regulations.
(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.
(a) Notwithstanding any other provision of this part, the
City of San Diego, the employees' exclusive representative, and
unrepresented employees may agree that the employer contribution for
postretirement health coverage shall be subject to the following:
(1) Credited years of service that the employee worked with the
City of San Diego.
(2) A memorandum of understanding regarding postretirement health
coverage mutually agreed upon through collective bargaining. This
issue may not be subject to the impasse procedures set forth in
Article 9 (commencing with Section 3548) of Chapter 10.7 of Division
4 of Title 1.
(b) This section is not applicable to any employee who retired
before the effective date of the memorandum of understanding. In the
event that the memorandum of understanding establishes a retroactive
effective date, this section applies only prospectively and any
employee who retires before the memorandum of understanding is signed
may not be affected by it.
(c) No agreement reached pursuant to subdivision (a) shall be
valid if it provides an employer contribution for employees with less
than 10 years of credited service with the City of San Diego.
(d) The City of San Diego shall provide, in the manner prescribed
by the board, a notification of the agreement established pursuant to
this section and any additional information necessary to implement
this section.
(e) This section shall only apply to employees who are either of
the following:
(1) Members of the San Diego Police Officers Association.
(2) Unclassified or unrepresented employees of the City of San
Diego.
(a) Notwithstanding any other provision of this part, a
school employer, the employees' exclusive representative, and
unrepresented employees may agree that the employer contribution for
postretirement health coverage shall be subject to the following:
(1) Credited years of service that the employee worked with the
contracting agency.
(2) A memorandum of understanding regarding postretirement health
coverage mutually agreed upon through collective bargaining. This
issue may not be subject to the impasse procedures set forth in
Article 9 (commencing with Section 3548) of Chapter 10.7 of Division
4 of Title 1.
(b) No agreement reached pursuant to subdivision (a) shall be
valid if it imposes separate postretirement health coverage vesting
requirements on employees in the same category and doing similar job
duties.
(c) This section is not applicable to any employee who retired
before the effective date of the memorandum of understanding. In the
event that the memorandum of understanding establishes a retroactive
effective date, this section applies only prospectively and any
employee who retires before the memorandum of understanding is signed
may not be affected by it.
(d) No agreement reached pursuant to subdivision (a) shall be
valid if it provides an employer contribution for employees with less
than five years of credited service with the school employer.
(e) The contracting agency shall provide, in the manner prescribed
by the board, a notification of the agreement established pursuant
to this section and any additional information necessary to implement
this section.
(a) Notwithstanding Section 22892, the percentage of
employer contribution payable for postretirement health benefits for
an employee of the Sacramento Metropolitan Fire District subject to
this section shall, except as provided in subdivision (b), be based
on the member's completed years of credited state service at
retirement as shown in the following table:
Credited Percentage of
Years Employer
of Service Contribution
5 25
6 30
7 35
8 40
9 45
10 50
11 55
12 60
13 65
14 70
15 75
16 80
17 85
18 90
19 95
20 or more 100
The application of this subdivision shall be subject to the
following:
(1) (A) In the case of the employees represented by a bargaining
unit, the employer contribution with respect to each annuitant shall
be determined pursuant to a memorandum of understanding approved
through a meet and confer process pursuant to the Meyers-Milias-Brown
Act (Chapter 10 (commencing with Section 3500) of Division 4 of
Title 1) with any recognized employee organization. The issue shall
not be subject to the impasse procedures set forth in Article 9
(commencing with Section 3548) of Chapter 10.7 of Division 4 of Title
1.
(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 adopted by a majority of the
Sacramento Metropolitan Fire District Board of Directors and shall be
in accordance with Section 7522.40.
(C) The employer contribution established by this paragraph shall
not be less than the adjusted employer contribution required by
subdivision (b) of Section 22892.
(2) The credited service of an employee for the purpose of
determining the percentage of employer contributions applicable under
this section shall mean state service as defined in Section 20069,
except that at least five years of service shall have been performed
entirely with the Sacramento Metropolitan Fire District.
(3) The Sacramento Metropolitan Fire District shall provide, in
the manner prescribed by the board, a notification of the agreement
and resolution adopted pursuant to paragraph (1) and any additional
information necessary to implement this section.
(4) The Sacramento Metropolitan Fire District 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.
(b) Notwithstanding subdivision (a), the contribution payable by
the Sacramento Metropolitan Fire District shall be equal to 100
percent of the amount established pursuant to paragraph (1) of
subdivision (a) on behalf of any annuitant who either:
(1) Retired for disability.
(2) Retired for service with 20 or more years of service credit
entirely with the Sacramento Metropolitan Fire District, regardless
of the number of days after separation from employment. The
contribution payable by the Sacramento Metropolitan Fire District
under this paragraph shall be paid only if it is greater than, and
made in lieu of, a contribution payable to the annuitant by another
employer under this part. The board shall establish application
procedures and eligibility criteria to implement this paragraph.
(c) This section applies only to the Sacramento Metropolitan Fire
District, or its successor. This section applies only with regard to
the employees of the district hired on or after December 1, 2011.
(a) Notwithstanding any other provision of this part, a
contracting agency and the employees' exclusive representative may
agree that the employer contribution for postretirement health
benefit coverage for an employee subject to this section shall be
based on the employee's completed years of service credited with the
contracting agency at retirement, with the contracting agency paying
no employer contribution for the first 15 years of that credited
service and paying 100 percent of the employer contribution for
employees with credited service of 15 years or more.
This section applies only to the North Orange County Community
College District and the Riverside County Superintendent of Schools,
only with regard to the employees of those agencies who are first
hired on or after July 1, 1993.
(b) An agreement entered into pursuant to subdivision (a) shall
provide that the employer contribution for a part-time employee, with
20 years or more of credited service with the contracting agency,
shall be 100 percent of the employer contribution.
(a) Notwithstanding any other provision of this part, the
percentage of employer contribution payable for postretirement health
benefits for an employee of the Alameda County Transportation
Improvement Authority shall, except as provided in subdivision (b),
be based on the employee's completed years of credited service,
provided that the Alameda County Transportation Improvement Authority
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 .................... 55
7 .................... 60
8 .................... 65
9 .................... 70
10 ................... 75
11 ................... 80
12 ................... 85
13 ................... 90
14 ................... 95
15 .................. 100
The application of this subdivision shall be subject to the
following:
(1) The employer contribution with respect to each annuitant shall
be adjusted by the employer each year. Those adjustments shall be
based upon the principle that the employer contribution for each
annuitant may not be less than the amount equal to 100 percent of the
weighted average of the health benefits plan premiums for an
employee or annuitant enrolled for self-alone, during the benefit
year to which the formula is applied, for the four health benefit
plans that had the largest agency enrollment, excluding family
members, during the previous benefit year. For each annuitant with
enrolled family members, the employer shall not pay an additional
contribution.
(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 state service as defined in Section 20069,
except that at least five years of credited service shall have been
performed with the Alameda County Transportation Improvement
Authority.
(4) The employer shall provide the board any information requested
that the board determines is necessary to implement this section.
(b) Notwithstanding subdivision (a), the contribution payable by
the employer subject to this section shall be equal to 100 percent of
the amount established pursuant to paragraph (1) of subdivision (a)
on behalf of any annuitant who either:
(1) Retired for disability.
(2) Retired for service with 15 or more years of service credit
entirely with that employer, regardless of the number of days after
separation from employment. The contribution payable by the employer
under this paragraph shall be paid only if it is greater than, and
made in lieu of, a contribution payable to the annuitant by another
employer under this part. The board shall establish application
procedures and eligibility criteria to implement this paragraph.
(c) This section applies only to the Alameda County Transportation
Improvement Authority, or its successor, and only with regard to the
employees of the agency who are first hired on or after October 1,
2004.
(a) The contributions required of a contracting agency,
along with contributions withheld from salaries of its employees,
shall be forwarded monthly, no later than the 10th day of the month
for which the contribution is due. The contributions shall be
credited to the Public Employees' Contingency Reserve Fund as
specified by Section 22910.
(1) Deferrals or contributions paid by a contracting agency shall
be paid through an electronic funds transfer method prescribed by the
board. This payment requirement is effective upon declaration by the
board.
(2) A contracting agency that is unable, for good cause, to comply
with paragraph (1), may apply to the board for a waiver that allows
the agency to pay in an alternate manner as prescribed by the board,
but not by credit card payment.
(3) For the purpose of this subdivision, "electronic funds
transfer" has the same meaning as that set forth in Section 20027.5.
(b) A county superintendent of schools shall draw requisitions
against the county school service fund and the funds of the
respective school districts for the amount equal to the total of the
employer contributions and the employee contributions deducted from
compensation paid from those funds. The amounts shall be deposited in
the county treasury to the credit of the contract retirement fund
established pursuant to Section 20617. The county superintendent
thereafter shall draw his or her requisitions against the fund in
favor of the board which, when allowed by the county auditor, shall
constitute warrants against the fund and shall forward the warrants
to the board in accordance with this section.
(c) If a contracting agency fails to remit the contributions when
due, the agency may be assessed interest at an annual rate of 10
percent and the costs of collection, including reasonable legal fees,
when necessary to collect the amounts due. In the case of repeated
delinquencies, the contracting agency may be assessed a penalty of 10
percent of the delinquent amount. That penalty may be assessed once
during each 30-day period that the amount remains unpaid.
Additionally, the contracting agency may be required to deposit
one-month's premium as a condition of continued participation in the
program.
(a) Notwithstanding any other provision of this part, the
County of Mariposa and the employees' exclusive representative may
agree that the employer contribution for health coverage shall be
subject to the following:
(1) In the case of employees represented by a bargaining unit, a
memorandum of understanding regarding health coverage, mutually
agreed upon through collective bargaining, or, in the case of
employees not represented by a bargaining unit, a resolution adopted
by a majority of the county board of supervisors, providing as
follows:
(A) Establishing the amount of its employer contribution for its
annuitants or employees at any amount equal to or above that of the
adjusted employer contribution required by subdivision (b) of Section
22892.
(B) Providing an employer contribution amount for annuitants that
is higher than the employer contribution provided for employees,
except that any employer contribution may not be less than the
adjusted employer contribution required by subdivision (b) of Section
22892. This subparagraph shall only apply to an employee who retired
before the effective date of the memorandum of understanding or
resolution adopted pursuant to subdivision (a). If the memorandum of
understanding or resolution establishes a retroactive effective date,
this subparagraph shall apply only prospectively, and any employee
who retires before the memorandum of understanding is signed or the
resolution is adopted shall be subject to this subparagraph.
(2) This subdivision shall not affect the obligations or benefits
of either the annuitants or the county that exist at the time of the
enactment of this section.
(b) The County of Mariposa shall provide, in the manner prescribed
by the board, a notification of the agreement established pursuant
to this section and any additional information necessary to implement
this section.
Each contracting agency shall contribute to the Public
Employees' Contingency Reserve Fund, an amount sufficient to bear all
of the administrative costs incurred by the board in providing to
the employees and annuitants of that agency the health benefits
provided by this part. The amount of the contributions required by
this section shall be determined by the board and may include an
appropriate share of overhead costs of the program. A contracting
agency shall, in addition, contribute to the fund for each of its
employees and annuitants the same amount as is required of the state
under paragraph (2) of subdivision (b) of Section 22885.
(a) For the purposes of this section, the term "district"
shall mean the San Francisco Bay Area Rapid Transit District.
(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.
(c) An agreement reached pursuant to subdivision (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
(d) An agreement reached pursuant to subdivision (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.
(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.
(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 (e). In the event that the
memorandum of understanding establishes a retroactive effective
date, this section shall apply only to retirements occurring on or
after the effective date of this section.
(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.
Any person or entity subject to the requirements of this
chapter shall comply with the standards set forth in Chapter 7
(commencing with Section 3750) of Part 1 of Division 9 of the Family
Code and Section 14124.94 of the Welfare and Institutions Code.