Bill Text: CA AB658 | 2023-2024 | Regular Session | Amended

California Assembly Bill 658 (Prior Session Legislation)

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

Bill Title: Public employment: retirement: benefits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 538, Statutes of 2023. [AB658 Detail]

Download: California-2023-AB658-Amended.html

Amended IN Senate June 05, 2023

Amended IN Assembly April 13, 2023

Amended IN Assembly March 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 658

Introduced by Assembly Member Mike Fong

February 09, 2023

An act to add Section 22904 to the Government Code, relating to public employee benefits.

LEGISLATIVE COUNSEL'S DIGEST

AB 658, as amended, Mike Fong. Public Employees’ Medical and Hospital Care Act: postemployment health benefits: the City of San Gabriel.

Existing law, the Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, authorizes the board to contract for health benefit plans for employees and annuitants, as defined, which may include employees and annuitants of contracting agencies. Under existing law, the employee’s or annuitant’s contribution is the total cost per month of coverage less the portion contributed by the employer. Existing law prescribes a minimum level for the employer’s contribution toward the employee’s or annuitant’s health benefits coverage.

This bill would authorize the City of San Gabriel to enter into an agreement with specified employees ~~hired~~ hired, and elected officials who first served, on or after January 1, 2023, to provide employer contributions for postretirement health care coverage to employees with at least 5 years of credited service with the City of San Gabriel. The bill would provide that its provisions for postretirement health benefits apply to employees who retire on or after the date that a memorandum of understanding that authorizes this benefit becomes effective. The bill ~~also requires~~ would require the City of San Gabriel to provide notice, as prescribed, of the agreement and any additional information necessary to implement these benefits.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of San Gabriel.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 22904 is added to the Government Code, to read:

22904.

(a) Notwithstanding any other provision of this part, the City of San Gabriel, the employees’ exclusive representative, and unrepresented employees may agree that the employer contribution for postretirement health coverage shall be subject to all of the following:

(1) Credited years of service that the employee worked with the City of San Gabriel.

(2) A memorandum of understanding regarding postretirement health coverage mutually agreed upon through collective bargaining. This issue shall not be subject to the impasse procedures set forth in Chapter 10 (commencing with Section 3500) of Division 4 of Title 1.

(3) The employer contribution ~~complies with the requirements~~ established by this section shall not be less than the adjusted employer contribution required by subdivision (b) of Section 22892.

(b) This section does not apply 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 shall not be affected by it.

(c) An agreement reached pursuant to subdivision (a) is not valid if it provides an employer contribution for employees with less than five years of credited service with the ~~city.~~ City of San Gabriel.

(d) The City of San Gabriel shall provide, in the manner prescribed by the board, notice of the agreement established pursuant to this section and any additional information necessary to implement this section.

(e) This section applies only to the City of San Gabriel and only with regard to ~~an employee of the city who is first hired~~ employees who are first hired on or after January 1, 2023, and elected officials who first served as elected officials on or after January 1, 2023.

SEC. 2.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of postretirement health coverage with regard to employees of the City of San Gabriel.