Bill Text: CA AB410 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public employee health benefits: enrollment.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-10-04 - Chaptered by Secretary of State - Chapter 525, Statutes of 2013. [AB410 Detail]

Download: California-2013-AB410-Amended.html

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BILL NUMBER: AB 410	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 4, 2013

INTRODUCED BY   Assembly Member Jones-Sawyer

                        FEBRUARY 15, 2013

   An act to  amend Section 22760 of, and to  add Section
22838 to  ,  the Government Code, relating to public
employee benefits.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 410, as amended, Jones-Sawyer. Public employee health benefits:
enrollment.
   Existing law requires the Board of Administration of the Public
Employees' Retirement System (PERS) to administer the Public
Employees' Medical and Hospital Care Act (PEMHCA). PEMHCA further
grants the board the power to approve health benefit plans and
contract with carriers offering health benefit plans. Under PEMHCA,
an employee or annuitant may enroll in a health benefit plan approved
or maintained by the board either as an individual or for self and
family.  Existing law defines annuitant for purposes of receiving
postretirement health benefits pursuant to PEMHCA and generally
requires that a person retire within 120 days of separation from
public employment, with specified exceptions.  
   Existing law provides that an employee who does not retire within
120 days of his or her separation from public employment, loses his
or her eligibility for postemployment health care benefits under
PEMHCA. 
   This bill would permit an annuitant who reinstates from retirement
under PERS for employment by the state or a contracting agency and
who subsequently retires again on or after January 1, 2014, to enroll
in a health benefit plan under PEMHCA  for which he or she is
eligible, as specified,  as an annuitant of the employer from
which he or she first retired, upon meeting  specified
conditions, including   certain conditions. In this
regard, the bill would require  that the person's subsequent
retirement  occurs   occur  within 120 days
after separation of employment  or the person is subject to
disability retirement, as specified, the person had at least 5 years
of credited service for the employer from which he or she first
retired or qualifies for a contribution payable by an employer under
disability retirement,   , as specified,  and that
the person is  not  be  eligible for a
postretirement health benefit contribution from the employer from
which he or she subsequently retires  or that the postretirement
health benefit contribution payable by that employer be less than the
contribution payable by that employer during his or her prior
retirement  .
   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 22760 of the  
Government Code   is amended to read: 
   22760.  "Annuitant" means:
   (a) A person, other than a National Guard member defined in
Section 20380.5, who has retired within 120 days of separation from
employment and who receives a retirement allowance under any state or
University of California retirement system to which the state was a
contributing party.
   (b) A surviving family member receiving an allowance in place of
an annuitant who has retired as provided in subdivision (a), or as
the survivor of a deceased employee under Section 21541, 21546,
21547, or 21547.7, or similar provisions of any other state
retirement system.
   (c) A person who has retired within 120 days of separation from
employment with a contracting agency as defined in Section 22768 
or, if applicable, consistent with the provisions of subdivision (b)
of Section 22893,  and who receives a retirement allowance from
the retirement system provided by  the   that
 employer, or a surviving family member who receives the
retirement allowance in place of the deceased.
   (d) A judge who receives the benefits provided by subdivision (e)
of Section 75522.
   (e) A person who was a state member for 30 years or more and who,
at the time of retirement, was a local member employed by a
contracting agency.
   (f) A Member of the Legislature or an elective officer of the
state whose office is provided by the California Constitution, who
has at least eight years of credited service, and who meets the
following conditions:
   (1) Permanently separates from state service on or after January
1, 1988, and not more than 10 years before or 10 years after his or
her minimum age for service retirement, or is an inactive member of
the Legislators' Retirement System pursuant to Section 9355.2.
   (2) Receives a retirement allowance under a state retirement
system supported in whole or in part by state funds other than the
University of California Retirement System.
   (g) An exempt employee who meets all of the following conditions:
   (1) Has at least 10 years of credited state service that includes
at least two years of credited service while an exempt employee.
   (2) Permanently separates from state service on or after January
1, 1988, and not more than 10 years before or 10 years after his or
her minimum age for service retirement.
   (3) Receives a retirement allowance under a state retirement
system supported in whole or in part by state funds other than the
University of California Retirement System.
   (h) A person receiving a survivor allowance pursuant to Article 3
(commencing with Section 21570) of Chapter 14 of Part 3 provided that
he or she was eligible to enroll in a health benefit plan on the
date of the member's death, on whose account the survivor allowance
is payable.
   (i) (1) A family member of a deceased retired member of the State
Teachers' Retirement Plan, if the deceased member meets the following
conditions:
   (A) Retired within 120 days of separation from employment.
   (B) Retired before the member's school employer elected to
contract for health benefit coverage under this part.
   (C) Prior to his or her death, received a retirement allowance
that did not provide for a survivor allowance to family members.
   (2) The family member shall elect coverage as an annuitant within
one calendar year from the date that the deceased member's school
employer elected to contract for health benefit coverage under this
part.
   SECTION 1.   SEC. 2.   Section 22838 is
added to the Government Code, to read:
   22838.  (a) An annuitant who reinstates from retirement pursuant
to Article 7 (commencing with Section 21190) of Chapter 12 of Part 3
may, upon his or her subsequent retirement,  elect to 
enroll in a health benefit plan approved or maintained by the board
as an annuitant of the employer from which he or she  first
retired   was   eligible to receive a
postretirement health benefit contribution payable by that employer
  during his or her prior retirement,  if  all
  both  of the following apply:
   (1) The subsequent retirement of that person occurs within 120
days after separation from employment or, if applicable,  by
the date provided in   consistent with the provisions of
 subdivision (b) of Section 22893. 
   (2) That person had at least five years of credited service for
the employer from which he or she first retired or qualifies for a
contribution payable by an employer as described in subdivision (b)
of Section 22893.  
   (3) 
    (2)  That person is not eligible for a postretirement
health benefit contribution from the employer from which he or she
subsequently retires or the postretirement health benefit
contribution payable by that employer is less than the contribution
payable by  the employer from which the annuitant first
retired   that employer during his or her prior
retirement  .
   (b) The postretirement health benefit contribution payable by an
employer under this section shall be in lieu of a contribution
payable to the annuitant by any other employer under this part.
   (c)  If an annuitant enrolls as an annuitant of the
employer from which he or she first retired as described in
subdivision (a), the credited service of that annuitant for 
 For  purposes of calculating the employer postretirement
health benefit contribution  , the credited service of a person
who enrolls as an annuitant pursuant to this section  shall not
include  years of  service  performed  for
any  other  employer  after   during
his or her  reinstatement from retirement  unless that
employer is the same employer from which the annuitant first retired
 .
   (d) This section shall apply irrespective of whether the person
 is enrolled as an employee   receives health
care coverage under this part  during his or her reinstatement
from retirement.
   (e) An annuitant who is eligible to enroll pursuant to this
section may enroll within 60 days after his or her subsequent
retirement or during a future open enrollment period, as provided by
regulation of the board, without discrimination as to premium rates
or benefits coverage.
   (f) This section shall only apply to an annuitant who, after
reinstatement, subsequently retires on or after January 1, 2014.