22870. (a) The state and each employee or annuitant shall
contribute a portion of the cost of providing the benefit coverage
afforded under the approved health benefit plan in which the employee
or annuitant is 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 of those 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 or annuitant shall commence
on the effective date of enrollment.
22871. (a) The employer contribution, with respect to each employee
or annuitant who is in the employment of or retired from service
with the state, including an academic position with the California
State University, or is a survivor of that person, shall be adjusted
by the Legislature in the annual Budget Act. Those adjustments shall
be based on the principle that the employer contribution for each
employee or annuitant shall be an 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 employee or 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 a
basic health benefit plan shall be counted for purposes of
calculating the employer contribution under this section.
(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.5. (a) Notwithstanding Section 22871, the employer
contribution with respect to each excluded employee, as defined by
subdivision (b) of Section 3527, who is otherwise eligible shall be
determined by the Department of Personnel Administration subject to
the appropriation of funds by the Legislature.
(b) Notwithstanding Section 22871, the employer contribution with
respect to each state employee, as defined by subdivision (c) of
Section 3513, who is otherwise eligible shall be determined through
the collective bargaining process subject to the appropriation of
funds by the Legislature.
22871.6. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Unit 9
shall be as described in subdivision (b).
(b) Effective January 1, 2004, the employer contribution for each
employee shall be an amount equal to 80 percent of the weighted
average of the basic health benefit plan premiums for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.7. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Units 5
and 8 shall be as described in subdivision (b).
(b) (1) From January 1, 2004, to December 31, 2005, inclusive, the
employer contribution for each employee shall be an amount equal to
80 percent of the weighted average of the basic health benefit plan
premiums for an active state civil service employee enrolled for self
alone, during the benefit year to which the formula is applied, for
the four basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year. For each employee with enrolled family
members, the employer shall contribute an additional 80 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 basic health benefit plans that
had the largest active state civil service enrollment, excluding
family members, during the previous benefit year.
(2) Beginning January 1, 2006, the employer contribution for each
employee shall be an amount equal to 85 percent of the weighted
average of the basic health benefit plan premiums for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.8. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Units 16
and 19 shall be as described in subdivision (b).
(b) (1) From January 1, 2004, to December 31, 2005, inclusive, the
employer contribution for each employee shall be an amount equal to
80 percent of the weighted average of the basic health benefit plan
premiums for an active state civil service employee enrolled for self
alone, during the benefit year to which the formula is applied, for
the four basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year. For each employee with enrolled family
members, the employer shall contribute an additional 80 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 basic health benefit plans that
had the largest active state civil service enrollment, excluding
family members, during the previous benefit year.
(2) Beginning January 1, 2006, the employer contribution for each
employee shall be an amount equal to 85 percent of the weighted
average of the basic health benefit plan premium for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.9. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Units 1,
4, 10, 11, 14, 15, 17, 20, and 21 shall be as described in
subdivision (b).
(b) Effective January 1, 2004, the employer contribution for each
employee shall be an amount equal to 80 percent of the weighted
average of the basic health benefit plan premiums for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22872. If an out-of-state employee is enrolled in a health benefit
plan, policy, contract, service agreement, or arrangement described
in Section 22857 and elects to receive the benefits provided by this
part, the state and the employee shall contribute and disburse a
portion of the cost of providing the benefit coverage in the same
amounts and in a like manner as is provided for contributions,
withholdings, appropriations, and payments for health benefit plans
under Sections 22871, 22880, 22881, 22883, 22885, and 22913.
Disbursements may be made to any person, association, corporation,
insurer, or other entity responsible for providing the benefit
coverage, except that the state shall make no contribution to the
Public Employees' Contingency Reserve Fund, for other than
administrative expense, with respect to an out-of-state employee and
the fund may not be made available to any extent or for any purpose
other than payment of administrative costs with respect to the
employee or the plan, policy, contract, service agreement, or
arrangement in which he or she is enrolled under this part.
22873. (a) Notwithstanding Section 22871, a state employee first
hired on or after January 1, 1985, may not be vested for the full
employer contribution payable for annuitants unless he or she has 10
years of credited state service at the time of retirement. The
employer contribution payable for annuitants with less than 10 years
of service shall be prorated based on credited state service at the
time of retirement. This section shall apply only to state employees
who retire for service. For purposes of this section, "state service"
includes all municipal, superior, and justice court services
rendered by a justice of the Supreme Court or court of appeal, or by
a judge of the superior court.
(b) This section does not apply to employees of the California
State University or of the Legislature.
22874. (a) Notwithstanding Sections 22870, 22871, and 22873, a
state employee, defined by subdivision (c) of Section 3513, who
becomes a state member of the system after January 1, 1989, may not
receive any portion of the employer contribution payable for
annuitants unless the person is credited with 10 years of state
service at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the 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
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation. Notwithstanding
Section 22826, for purposes of this section, credited state service
includes service to the state for which the employee, pursuant to
Section 20281.5, did not receive credit.
(d) This section does not apply to employees of the California
State University, the judicial branch, or the Legislature.
22874.1. (a) Notwithstanding Sections 22870, 22871, 22873, and
22874 a state employee, defined by subdivision (c) of Section 3513,
who is employed by the state for the first time, and who is
represented by State Bargaining Unit 12, who becomes a state member
of the system on or after January 1, 2011, may not receive any
portion of the employer contribution payable for annuitants unless
the person is credited with 15 years of state service at the time of
retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table:
Credited Years
Years of Service Percentage
Contribution
of Employer
Contribution
15.......................... 50
16.......................... 55
17.......................... 60
18.......................... 65
19.......................... 70
20.......................... 75
21.......................... 80
22.......................... 85
23.......................... 90
24.......................... 95
25 or more.................. 100
(c) This section shall apply only to state employees who retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation. Notwithstanding
Section 22826, for purposes of this section, credited state service
includes service to the state for which the employee, pursuant to
Section 20281.5, did not receive credit.
(d) This section does not apply to:
(1) Former state employees previously employed before January 1,
2011, who return to state employment on or after January 1, 2011.
(2) State employees hired prior to January 1, 2011, who were
subject to Section 20281.5 during the first 24 months of state
employment.
(3) State employees hired prior to January 1, 2011, who become
subject to representation by State Bargaining Unit 12 on or after
January 1, 2011.
(4) State employees on an approved leave of absence employed
before January 1, 2011, who return to active employment on or after
January 1, 2011.
(5) State employees hired after January 1, 2011, who are first
represented by a state bargaining unit other than State Bargaining
Unit 12.
(6) Employees of the California State University, the judicial
branch, or the Legislature.
(e) Notwithstanding Section 22875, this section shall also apply
to a related state employee who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513, and an officer
or employee of the executive branch of state government who is not a
member of the civil service who met the requirements of this section
when employed by the state for the first time.
22875. (a) Notwithstanding Sections 22870, 22871, 22873, and 22874,
a state employee who becomes a state member of the system after
January 1, 1990, and is either excluded from the definition of a
state employee in subdivision (c) of Section 3513, or a nonelected
officer or employee of the executive branch of government who is not
a member of the civil service, may not receive any portion of the
employer contribution payable for annuitants, unless the employee is
credited with 10 years of state service, as defined by this section,
at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the 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
(c) This section shall apply only to state employees who retire
for service.
(d) Benefits provided to an employee subject to this section shall
be applicable to all future state service.
(e) For the purposes of this section, "state service" means
service rendered as an employee or an appointed or elected officer of
the state for compensation. Notwithstanding Section 22826, for
purposes of this section, credited state service includes service to
the state for which the employee, pursuant to Section 20281.5, did
not receive credit.
(f) This section does not apply to employees of the California
State University, the judicial branch, or the Legislature.
22875.5. (a) If the state has assumed from a public agency a
function and the related personnel, service rendered by that
personnel for compensation as employees or appointed or elective
officers of that public agency may not be credited as state service
for the purposes of Section 22874 or 22875, unless both of the
following apply:
(1) The former employer has paid or agreed to pay the state the
amount actuarially determined to equal the cost for any employee
health benefits that were vested at the time that the function and
the related personnel were assumed by the state.
(2) The Department of Finance finds that the contract contains a
benefit factor sufficient to reimburse the state for the amount
necessary to fully compensate for the postretirement health benefit
costs of those personnel.
(b) For noncontracting public agencies, the state agency that has
assumed the function shall certify the completed years of public
agency service to be credited to the employee as state service credit
under Section 22874 or 22875.
22876. (a) For the purpose of meeting the vesting requirements of
Section 22873, employees of the County of Merced who became employees
of the state as a result of the state's assuming firefighting
functions for that county shall be credited with state service for
each completed year of service with the county that would have been
credited by the county for the vesting of postretirement health
benefits. The definition of "state service" does not apply to
employees of the County of Merced who became employees of the state
as a result of the state assuming firefighting functions for the
county on or before August 1, 1988.
(b) Notwithstanding Section 22875.5, for the purposes of meeting
the vesting requirements of Section 22873, 22874, or 22875, employees
of the Cities of Rubidoux and Coachella who become employees of the
state, on or before December 31, 1990, as a result of the state's
assuming firefighting functions for the city, shall be credited with
state service for each completed year of service with the city. The
city shall identify those employees and provide the corresponding
service credit information to the board.
(c) No employee whose firefighting function was transferred to the
state after December 31, 1990, shall receive credit toward
postretirement health benefits vesting unless the former employer
agrees to reimburse the state for the costs of that credit in
accordance with Section 22875.5.
22877. (a) As used in this section, the following definitions shall
apply:
(1) "Coinsurance" means the provision of a health benefit plan
design that requires the health benefit plan and state employee to
share the cost of hospital or medical expenses at a specified ratio.
(2) "Deductible" means the annual amount of out-of-pocket medical
expenses that a state employee must pay before the health benefit
plan begins paying for expenses.
(3) "Program" means the Rural Health Care Equity Program.
(4) "Rural area" means an area in which there is no board-approved
health maintenance organization plan available for enrollment by
state employees residing in the area.
(b) (1) The Rural Health Care Equity Program is hereby established
for the purpose of funding the subsidization and reimbursement of
premium costs, deductibles, coinsurance, and other out-of-pocket
health care expenses paid by eligible employees living in rural areas
that would otherwise be covered if the state employee was enrolled
in a board-approved health maintenance organization plan. The program
shall be administered by the Department of Personnel Administration
or by a third-party administrator approved by the Department of
Personnel Administration in a manner consistent with all applicable
state and federal laws. The board shall determine the rural area for
each subsequent fiscal year, at the same time that premiums for
health maintenance organization plans are approved.
(2) Separate accounts shall be maintained within the program for
all of the following:
(A) Employees, as defined in subdivision (c) of Section 3513.
(B) Excluded employees, as defined in subdivision (b) of Section
3527.
(c) Moneys in the program shall be allocated to the respective
accounts as follows:
(1) The contribution provided by the state with respect to each
employee, as defined in subdivision (c) of Section 3513, who lives in
a rural area and is otherwise eligible, shall be an amount
determined through the collective bargaining process.
(2) The contribution provided by the state with respect to each
excluded employee, as defined in subdivision (b) of Section 3527, who
lives in a rural area and is otherwise eligible, shall be an amount
equal to, but not to exceed, the amount contributed pursuant to
paragraph (1).
(3) If an eligible employee enters or leaves service with the
state during a fiscal year, contributions for the employee shall be
made on a pro rata basis. A similar computation shall be used for
anyone entering or leaving the bargaining unit, including a person
who enters State Bargaining Unit 5 by promotion during a fiscal year.
(d) Each fund of the State Treasury, other than the General Fund,
shall reimburse the General Fund for any sums allocated pursuant to
subdivision (c) for employees whose compensation is paid from that
fund. That reimbursement shall be accomplished using the following
methodology:
(1) On or before December 1 of each year, the Department of
Personnel Administration shall provide a list of active state
employees who participated in the program during the previous fiscal
year to each employing department.
(2) On or before January 15 of each year, each department that
employed an active state employee identified by the Department of
Personnel Administration as a participant in the program shall
provide the Department of Personnel Administration with a list of the
funds used to pay each employee's salary, along with the proportion
of each employee's salary attributable to each fund.
(3) Using the information provided by the employing departments,
the Department of Personnel Administration shall compile a list of
program payments attributable to each fund. On or before February 15
of each year, the Department of Personnel Administration shall
transmit this list to the Department of Finance.
(4) The Department of Finance shall certify to the Controller the
amount to be transferred from the unencumbered balance of each fund
to the General Fund.
(5) The Controller shall transfer to the General Fund from the
unencumbered balance of each impacted fund the amount specified by
the Department of Finance.
(6) To ensure the equitable allocation of costs, the Director of
the Department of Personnel Administration or the Director of Finance
may require an audit of departmental reports.
(e) Notwithstanding any other law and subject to the availability
of funds, moneys within the program shall be disbursed for the
benefit of eligible employees. The disbursements shall subsidize the
preferred provider plan premiums for the employee by an amount equal
to the difference between the weighted average of board-approved
health maintenance organization premiums and the lowest
board-approved preferred provider plan premium available under this
part, and reimburse the employee for a portion or all of his or her
incurred deductible, coinsurance, and other out-of-pocket
health-related expenses that would otherwise be covered if the
employee and his or her family members were enrolled in a
board-approved health maintenance organization plan. These subsidies
and reimbursements shall be provided as determined by the Department
of Personnel Administration, which may include, but is not limited
to, a supplemental insurance plan, a medical reimbursement account,
or a medical spending account plan.
(f) Subject to subdivision (h), moneys remaining in an account of
the program at the end of any fiscal year shall remain in the account
for use in subsequent fiscal years, until the account is terminated.
Moneys remaining in a program account upon termination, after
payment of all expenses and claims incurred prior to the date of
termination, shall be deposited in the General Fund.
(g) The Legislature finds and declares that the program shall be
operated for the exclusive benefit of employees of State Bargaining
Unit 5.
(h) This section shall be operative only to the extent that
funding is provided in the annual Budget Act or another statute and
solely for the benefit of employees of State Bargaining Unit 5.
(i) This section shall cease to be operative on July 3, 2010, or
on an earlier date if the board makes a formal determination that
health maintenance organization plans are no longer the most
cost-effective health benefit plans offered by the board.
(j) Notwithstanding any other law, on and after July 1, 2009, the
benefits of the Rural Health Care Equity Program shall be available
only to employees in State Bargaining Unit 5, and shall not be
available to any other employees. Pursuant to subdivision (f), any
moneys that remain in the accounts of the program on July 1, 2009,
other than moneys attributable to employees in State Bargaining Unit
5 on that date, shall be deposited in the General Fund. Benefits of
the Rural Health Care Equity Program shall cease to be available to
employees in State Bargaining Unit 5, on and after July 3, 2010, and
any moneys remaining in the accounts of the program shall be
deposited in the General Fund.
22878. A health benefit plan offered by the California Association
of Highway Patrolmen may rebate funds to participants enrolled in the
basic and Medicare health benefit plans sponsored by the
association, in order to ensure that participant out-of-pocket costs
remain at a reasonable and competitive level as determined by the
Board of Trustees of the California Association of Highway Patrolmen
Health Benefits Trust. The payments shall be made from the special
reserves of the health benefits trust fund. The amount of funds shall
be limited to the portion of special reserves for that health
benefit plan that is in excess of the amount necessary to fund the
risk up to the reinsurance attachment level. Administrative costs
incurred by the state for the implementation of this section shall be
reimbursed by the health benefits trust from the same funds.
22879. (a) The board shall pay monthly to an employee or annuitant
who is enrolled in, or whose family member is enrolled in, a Medicare
health benefit plan under this part the amount of the Medicare Part
B premiums, exclusive of penalties, except as provided in Section
22831. This payment may not exceed the difference between the maximum
employer contribution and the amount contributed by the employer
toward the cost of premiums for the health benefit plan in which the
employee or annuitant and his or her family members are enrolled. No
payment may be made in any month if the difference is less than one
dollar ($1).
(b) This section shall be applicable only to state employees,
annuitants who retired while state employees, and the family members
of those persons.
(c) With respect to an annuitant, the board shall pay to the
annuitant the amount required by this section from the same source
from which his or her allowance is paid. Those amounts are hereby
appropriated monthly from the General Fund to reimburse the board for
those payments.
(d) There is hereby appropriated from the appropriate funds the
amounts required by this section to be paid to active state
employees.
22880. The contributions of each employee and annuitant shall be
withheld from the monthly salary or retirement allowance payable to
him or her.
The employer contribution required of the state, as provided by
Sections 22881 and 22883, for any month shall be charged to the same
fund used for payment of salaries and wages from which the employee
contribution is deducted.
The employer contribution required of the state on account of each
annuitant shall be payable from the funds appropriated for that
purpose.
22881. From the General Fund in the State Treasury, there is hereby
appropriated monthly the employer contribution required of the state
under Sections 22820, 22834, 22870, 22871, and 22885 for:
(a) All employees whose compensation is paid from the General
Fund.
(b) All employees whose compensation is paid from funds of, or
funds appropriated to, the California State University.
(c) All employees who are employed by the Department of Education
or the Department of Rehabilitation and whose compensation is paid
from the Vocational Education Federal Fund, the Vocational
Rehabilitation Federal Fund, or any other fund received, in whole or
in part, as a donation to the state under restrictions preventing its
use for such contributions.
(d) All employees whose compensation is paid from the Senate
Contingent Fund, Assembly Contingent Fund, or the Contingent Fund of
the Assembly and Senate.
(e) All annuitants.
22883. (a) Each fund in the State Treasury, other than the General
Fund and the Central Service Cost Recovery Fund, shall be charged a
fair share of the employer contribution for annuitants in accordance
with Article 2 (commencing with Section 11270) of Chapter 3 of Part 1
of Division 3.
(b) From each fund in the State Treasury, other than the General
Fund and the Central Service Cost Recovery Fund, there is hereby
appropriated monthly the employer contribution required under
Sections 22870, 22871, and 22885 for all employees whose compensation
is paid from that fund.
22885. (a) The state shall, in addition to the contributions
required by Section 22870, contribute additional amounts necessary to
provide funds for the administration of this part and for the
establishment and continuation of the Public Employees' Contingency
Reserve Fund.
(b) The additional contributions shall be in amounts reasonably
adequate to pay the administrative expenses and to establish and
maintain the account within the Public Employees' Contingency Reserve
Fund provided by subdivision (b) of Section 22910, as determined by
the board and as adopted by the Legislature in an appropriate control
section of the annual Budget Act, but may not exceed, for each
employee or annuitant, the following amounts:
(1) For administrative expenses, 2 percent of the total of the
contributions made by the employee or annuitant and by the state on
behalf of the employee or annuitant for enrollment in a health
benefit plan.
(2) For the account within the Public Employees' Contingency
Reserve Fund provided by subdivision (b) of Section 22910, 4 percent
of the total of the contributions made by the employee or annuitant
and by the state on behalf of the employee or annuitant for
enrollment in a health benefit plan.
22889. 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.
22870. (a) The state and each employee or annuitant shall
contribute a portion of the cost of providing the benefit coverage
afforded under the approved health benefit plan in which the employee
or annuitant is 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 of those 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 or annuitant shall commence
on the effective date of enrollment.
22871. (a) The employer contribution, with respect to each employee
or annuitant who is in the employment of or retired from service
with the state, including an academic position with the California
State University, or is a survivor of that person, shall be adjusted
by the Legislature in the annual Budget Act. Those adjustments shall
be based on the principle that the employer contribution for each
employee or annuitant shall be an 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 employee or 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 a
basic health benefit plan shall be counted for purposes of
calculating the employer contribution under this section.
(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.5. (a) Notwithstanding Section 22871, the employer
contribution with respect to each excluded employee, as defined by
subdivision (b) of Section 3527, who is otherwise eligible shall be
determined by the Department of Personnel Administration subject to
the appropriation of funds by the Legislature.
(b) Notwithstanding Section 22871, the employer contribution with
respect to each state employee, as defined by subdivision (c) of
Section 3513, who is otherwise eligible shall be determined through
the collective bargaining process subject to the appropriation of
funds by the Legislature.
22871.6. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Unit 9
shall be as described in subdivision (b).
(b) Effective January 1, 2004, the employer contribution for each
employee shall be an amount equal to 80 percent of the weighted
average of the basic health benefit plan premiums for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.7. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Units 5
and 8 shall be as described in subdivision (b).
(b) (1) From January 1, 2004, to December 31, 2005, inclusive, the
employer contribution for each employee shall be an amount equal to
80 percent of the weighted average of the basic health benefit plan
premiums for an active state civil service employee enrolled for self
alone, during the benefit year to which the formula is applied, for
the four basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year. For each employee with enrolled family
members, the employer shall contribute an additional 80 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 basic health benefit plans that
had the largest active state civil service enrollment, excluding
family members, during the previous benefit year.
(2) Beginning January 1, 2006, the employer contribution for each
employee shall be an amount equal to 85 percent of the weighted
average of the basic health benefit plan premiums for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.8. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Units 16
and 19 shall be as described in subdivision (b).
(b) (1) From January 1, 2004, to December 31, 2005, inclusive, the
employer contribution for each employee shall be an amount equal to
80 percent of the weighted average of the basic health benefit plan
premiums for an active state civil service employee enrolled for self
alone, during the benefit year to which the formula is applied, for
the four basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year. For each employee with enrolled family
members, the employer shall contribute an additional 80 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 basic health benefit plans that
had the largest active state civil service enrollment, excluding
family members, during the previous benefit year.
(2) Beginning January 1, 2006, the employer contribution for each
employee shall be an amount equal to 85 percent of the weighted
average of the basic health benefit plan premium for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.9. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Units 1,
4, 10, 11, 14, 15, 17, 20, and 21 shall be as described in
subdivision (b).
(b) Effective January 1, 2004, the employer contribution for each
employee shall be an amount equal to 80 percent of the weighted
average of the basic health benefit plan premiums for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22872. If an out-of-state employee is enrolled in a health benefit
plan, policy, contract, service agreement, or arrangement described
in Section 22857 and elects to receive the benefits provided by this
part, the state and the employee shall contribute and disburse a
portion of the cost of providing the benefit coverage in the same
amounts and in a like manner as is provided for contributions,
withholdings, appropriations, and payments for health benefit plans
under Sections 22871, 22880, 22881, 22883, 22885, and 22913.
Disbursements may be made to any person, association, corporation,
insurer, or other entity responsible for providing the benefit
coverage, except that the state shall make no contribution to the
Public Employees' Contingency Reserve Fund, for other than
administrative expense, with respect to an out-of-state employee and
the fund may not be made available to any extent or for any purpose
other than payment of administrative costs with respect to the
employee or the plan, policy, contract, service agreement, or
arrangement in which he or she is enrolled under this part.
22873. (a) Notwithstanding Section 22871, a state employee first
hired on or after January 1, 1985, may not be vested for the full
employer contribution payable for annuitants unless he or she has 10
years of credited state service at the time of retirement. The
employer contribution payable for annuitants with less than 10 years
of service shall be prorated based on credited state service at the
time of retirement. This section shall apply only to state employees
who retire for service. For purposes of this section, "state service"
includes all municipal, superior, and justice court services
rendered by a justice of the Supreme Court or court of appeal, or by
a judge of the superior court.
(b) This section does not apply to employees of the California
State University or of the Legislature.
22874. (a) Notwithstanding Sections 22870, 22871, and 22873, a
state employee, defined by subdivision (c) of Section 3513, who
becomes a state member of the system after January 1, 1989, may not
receive any portion of the employer contribution payable for
annuitants unless the person is credited with 10 years of state
service at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the 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
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation. Notwithstanding
Section 22826, for purposes of this section, credited state service
includes service to the state for which the employee, pursuant to
Section 20281.5, did not receive credit.
(d) This section does not apply to employees of the California
State University, the judicial branch, or the Legislature.
22874.1. (a) Notwithstanding Sections 22870, 22871, 22873, and
22874 a state employee, defined by subdivision (c) of Section 3513,
who is employed by the state for the first time, and who is
represented by State Bargaining Unit 12, who becomes a state member
of the system on or after January 1, 2011, may not receive any
portion of the employer contribution payable for annuitants unless
the person is credited with 15 years of state service at the time of
retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table:
Credited Years
Years of Service Percentage
Contribution
of Employer
Contribution
15.......................... 50
16.......................... 55
17.......................... 60
18.......................... 65
19.......................... 70
20.......................... 75
21.......................... 80
22.......................... 85
23.......................... 90
24.......................... 95
25 or more.................. 100
(c) This section shall apply only to state employees who retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation. Notwithstanding
Section 22826, for purposes of this section, credited state service
includes service to the state for which the employee, pursuant to
Section 20281.5, did not receive credit.
(d) This section does not apply to:
(1) Former state employees previously employed before January 1,
2011, who return to state employment on or after January 1, 2011.
(2) State employees hired prior to January 1, 2011, who were
subject to Section 20281.5 during the first 24 months of state
employment.
(3) State employees hired prior to January 1, 2011, who become
subject to representation by State Bargaining Unit 12 on or after
January 1, 2011.
(4) State employees on an approved leave of absence employed
before January 1, 2011, who return to active employment on or after
January 1, 2011.
(5) State employees hired after January 1, 2011, who are first
represented by a state bargaining unit other than State Bargaining
Unit 12.
(6) Employees of the California State University, the judicial
branch, or the Legislature.
(e) Notwithstanding Section 22875, this section shall also apply
to a related state employee who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513, and an officer
or employee of the executive branch of state government who is not a
member of the civil service who met the requirements of this section
when employed by the state for the first time.
22875. (a) Notwithstanding Sections 22870, 22871, 22873, and 22874,
a state employee who becomes a state member of the system after
January 1, 1990, and is either excluded from the definition of a
state employee in subdivision (c) of Section 3513, or a nonelected
officer or employee of the executive branch of government who is not
a member of the civil service, may not receive any portion of the
employer contribution payable for annuitants, unless the employee is
credited with 10 years of state service, as defined by this section,
at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the 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
(c) This section shall apply only to state employees who retire
for service.
(d) Benefits provided to an employee subject to this section shall
be applicable to all future state service.
(e) For the purposes of this section, "state service" means
service rendered as an employee or an appointed or elected officer of
the state for compensation. Notwithstanding Section 22826, for
purposes of this section, credited state service includes service to
the state for which the employee, pursuant to Section 20281.5, did
not receive credit.
(f) This section does not apply to employees of the California
State University, the judicial branch, or the Legislature.
22875.5. (a) If the state has assumed from a public agency a
function and the related personnel, service rendered by that
personnel for compensation as employees or appointed or elective
officers of that public agency may not be credited as state service
for the purposes of Section 22874 or 22875, unless both of the
following apply:
(1) The former employer has paid or agreed to pay the state the
amount actuarially determined to equal the cost for any employee
health benefits that were vested at the time that the function and
the related personnel were assumed by the state.
(2) The Department of Finance finds that the contract contains a
benefit factor sufficient to reimburse the state for the amount
necessary to fully compensate for the postretirement health benefit
costs of those personnel.
(b) For noncontracting public agencies, the state agency that has
assumed the function shall certify the completed years of public
agency service to be credited to the employee as state service credit
under Section 22874 or 22875.
22876. (a) For the purpose of meeting the vesting requirements of
Section 22873, employees of the County of Merced who became employees
of the state as a result of the state's assuming firefighting
functions for that county shall be credited with state service for
each completed year of service with the county that would have been
credited by the county for the vesting of postretirement health
benefits. The definition of "state service" does not apply to
employees of the County of Merced who became employees of the state
as a result of the state assuming firefighting functions for the
county on or before August 1, 1988.
(b) Notwithstanding Section 22875.5, for the purposes of meeting
the vesting requirements of Section 22873, 22874, or 22875, employees
of the Cities of Rubidoux and Coachella who become employees of the
state, on or before December 31, 1990, as a result of the state's
assuming firefighting functions for the city, shall be credited with
state service for each completed year of service with the city. The
city shall identify those employees and provide the corresponding
service credit information to the board.
(c) No employee whose firefighting function was transferred to the
state after December 31, 1990, shall receive credit toward
postretirement health benefits vesting unless the former employer
agrees to reimburse the state for the costs of that credit in
accordance with Section 22875.5.
22877. (a) As used in this section, the following definitions shall
apply:
(1) "Coinsurance" means the provision of a health benefit plan
design that requires the health benefit plan and state employee to
share the cost of hospital or medical expenses at a specified ratio.
(2) "Deductible" means the annual amount of out-of-pocket medical
expenses that a state employee must pay before the health benefit
plan begins paying for expenses.
(3) "Program" means the Rural Health Care Equity Program.
(4) "Rural area" means an area in which there is no board-approved
health maintenance organization plan available for enrollment by
state employees residing in the area.
(b) (1) The Rural Health Care Equity Program is hereby established
for the purpose of funding the subsidization and reimbursement of
premium costs, deductibles, coinsurance, and other out-of-pocket
health care expenses paid by eligible employees living in rural areas
that would otherwise be covered if the state employee was enrolled
in a board-approved health maintenance organization plan. The program
shall be administered by the Department of Personnel Administration
or by a third-party administrator approved by the Department of
Personnel Administration in a manner consistent with all applicable
state and federal laws. The board shall determine the rural area for
each subsequent fiscal year, at the same time that premiums for
health maintenance organization plans are approved.
(2) Separate accounts shall be maintained within the program for
all of the following:
(A) Employees, as defined in subdivision (c) of Section 3513.
(B) Excluded employees, as defined in subdivision (b) of Section
3527.
(c) Moneys in the program shall be allocated to the respective
accounts as follows:
(1) The contribution provided by the state with respect to each
employee, as defined in subdivision (c) of Section 3513, who lives in
a rural area and is otherwise eligible, shall be an amount
determined through the collective bargaining process.
(2) The contribution provided by the state with respect to each
excluded employee, as defined in subdivision (b) of Section 3527, who
lives in a rural area and is otherwise eligible, shall be an amount
equal to, but not to exceed, the amount contributed pursuant to
paragraph (1).
(3) If an eligible employee enters or leaves service with the
state during a fiscal year, contributions for the employee shall be
made on a pro rata basis. A similar computation shall be used for
anyone entering or leaving the bargaining unit, including a person
who enters State Bargaining Unit 5 by promotion during a fiscal year.
(d) Each fund of the State Treasury, other than the General Fund,
shall reimburse the General Fund for any sums allocated pursuant to
subdivision (c) for employees whose compensation is paid from that
fund. That reimbursement shall be accomplished using the following
methodology:
(1) On or before December 1 of each year, the Department of
Personnel Administration shall provide a list of active state
employees who participated in the program during the previous fiscal
year to each employing department.
(2) On or before January 15 of each year, each department that
employed an active state employee identified by the Department of
Personnel Administration as a participant in the program shall
provide the Department of Personnel Administration with a list of the
funds used to pay each employee's salary, along with the proportion
of each employee's salary attributable to each fund.
(3) Using the information provided by the employing departments,
the Department of Personnel Administration shall compile a list of
program payments attributable to each fund. On or before February 15
of each year, the Department of Personnel Administration shall
transmit this list to the Department of Finance.
(4) The Department of Finance shall certify to the Controller the
amount to be transferred from the unencumbered balance of each fund
to the General Fund.
(5) The Controller shall transfer to the General Fund from the
unencumbered balance of each impacted fund the amount specified by
the Department of Finance.
(6) To ensure the equitable allocation of costs, the Director of
the Department of Personnel Administration or the Director of Finance
may require an audit of departmental reports.
(e) Notwithstanding any other law and subject to the availability
of funds, moneys within the program shall be disbursed for the
benefit of eligible employees. The disbursements shall subsidize the
preferred provider plan premiums for the employee by an amount equal
to the difference between the weighted average of board-approved
health maintenance organization premiums and the lowest
board-approved preferred provider plan premium available under this
part, and reimburse the employee for a portion or all of his or her
incurred deductible, coinsurance, and other out-of-pocket
health-related expenses that would otherwise be covered if the
employee and his or her family members were enrolled in a
board-approved health maintenance organization plan. These subsidies
and reimbursements shall be provided as determined by the Department
of Personnel Administration, which may include, but is not limited
to, a supplemental insurance plan, a medical reimbursement account,
or a medical spending account plan.
(f) Subject to subdivision (h), moneys remaining in an account of
the program at the end of any fiscal year shall remain in the account
for use in subsequent fiscal years, until the account is terminated.
Moneys remaining in a program account upon termination, after
payment of all expenses and claims incurred prior to the date of
termination, shall be deposited in the General Fund.
(g) The Legislature finds and declares that the program shall be
operated for the exclusive benefit of employees of State Bargaining
Unit 5.
(h) This section shall be operative only to the extent that
funding is provided in the annual Budget Act or another statute and
solely for the benefit of employees of State Bargaining Unit 5.
(i) This section shall cease to be operative on July 3, 2010, or
on an earlier date if the board makes a formal determination that
health maintenance organization plans are no longer the most
cost-effective health benefit plans offered by the board.
(j) Notwithstanding any other law, on and after July 1, 2009, the
benefits of the Rural Health Care Equity Program shall be available
only to employees in State Bargaining Unit 5, and shall not be
available to any other employees. Pursuant to subdivision (f), any
moneys that remain in the accounts of the program on July 1, 2009,
other than moneys attributable to employees in State Bargaining Unit
5 on that date, shall be deposited in the General Fund. Benefits of
the Rural Health Care Equity Program shall cease to be available to
employees in State Bargaining Unit 5, on and after July 3, 2010, and
any moneys remaining in the accounts of the program shall be
deposited in the General Fund.
22878. A health benefit plan offered by the California Association
of Highway Patrolmen may rebate funds to participants enrolled in the
basic and Medicare health benefit plans sponsored by the
association, in order to ensure that participant out-of-pocket costs
remain at a reasonable and competitive level as determined by the
Board of Trustees of the California Association of Highway Patrolmen
Health Benefits Trust. The payments shall be made from the special
reserves of the health benefits trust fund. The amount of funds shall
be limited to the portion of special reserves for that health
benefit plan that is in excess of the amount necessary to fund the
risk up to the reinsurance attachment level. Administrative costs
incurred by the state for the implementation of this section shall be
reimbursed by the health benefits trust from the same funds.
22879. (a) The board shall pay monthly to an employee or annuitant
who is enrolled in, or whose family member is enrolled in, a Medicare
health benefit plan under this part the amount of the Medicare Part
B premiums, exclusive of penalties, except as provided in Section
22831. This payment may not exceed the difference between the maximum
employer contribution and the amount contributed by the employer
toward the cost of premiums for the health benefit plan in which the
employee or annuitant and his or her family members are enrolled. No
payment may be made in any month if the difference is less than one
dollar ($1).
(b) This section shall be applicable only to state employees,
annuitants who retired while state employees, and the family members
of those persons.
(c) With respect to an annuitant, the board shall pay to the
annuitant the amount required by this section from the same source
from which his or her allowance is paid. Those amounts are hereby
appropriated monthly from the General Fund to reimburse the board for
those payments.
(d) There is hereby appropriated from the appropriate funds the
amounts required by this section to be paid to active state
employees.
22880. The contributions of each employee and annuitant shall be
withheld from the monthly salary or retirement allowance payable to
him or her.
The employer contribution required of the state, as provided by
Sections 22881 and 22883, for any month shall be charged to the same
fund used for payment of salaries and wages from which the employee
contribution is deducted.
The employer contribution required of the state on account of each
annuitant shall be payable from the funds appropriated for that
purpose.
22881. From the General Fund in the State Treasury, there is hereby
appropriated monthly the employer contribution required of the state
under Sections 22820, 22834, 22870, 22871, and 22885 for:
(a) All employees whose compensation is paid from the General
Fund.
(b) All employees whose compensation is paid from funds of, or
funds appropriated to, the California State University.
(c) All employees who are employed by the Department of Education
or the Department of Rehabilitation and whose compensation is paid
from the Vocational Education Federal Fund, the Vocational
Rehabilitation Federal Fund, or any other fund received, in whole or
in part, as a donation to the state under restrictions preventing its
use for such contributions.
(d) All employees whose compensation is paid from the Senate
Contingent Fund, Assembly Contingent Fund, or the Contingent Fund of
the Assembly and Senate.
(e) All annuitants.
22883. (a) Each fund in the State Treasury, other than the General
Fund and the Central Service Cost Recovery Fund, shall be charged a
fair share of the employer contribution for annuitants in accordance
with Article 2 (commencing with Section 11270) of Chapter 3 of Part 1
of Division 3.
(b) From each fund in the State Treasury, other than the General
Fund and the Central Service Cost Recovery Fund, there is hereby
appropriated monthly the employer contribution required under
Sections 22870, 22871, and 22885 for all employees whose compensation
is paid from that fund.
22885. (a) The state shall, in addition to the contributions
required by Section 22870, contribute additional amounts necessary to
provide funds for the administration of this part and for the
establishment and continuation of the Public Employees' Contingency
Reserve Fund.
(b) The additional contributions shall be in amounts reasonably
adequate to pay the administrative expenses and to establish and
maintain the account within the Public Employees' Contingency Reserve
Fund provided by subdivision (b) of Section 22910, as determined by
the board and as adopted by the Legislature in an appropriate control
section of the annual Budget Act, but may not exceed, for each
employee or annuitant, the following amounts:
(1) For administrative expenses, 2 percent of the total of the
contributions made by the employee or annuitant and by the state on
behalf of the employee or annuitant for enrollment in a health
benefit plan.
(2) For the account within the Public Employees' Contingency
Reserve Fund provided by subdivision (b) of Section 22910, 4 percent
of the total of the contributions made by the employee or annuitant
and by the state on behalf of the employee or annuitant for
enrollment in a health benefit plan.
22889. 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.
22870. (a) The state and each employee or annuitant shall
contribute a portion of the cost of providing the benefit coverage
afforded under the approved health benefit plan in which the employee
or annuitant is 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 of those 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 or annuitant shall commence
on the effective date of enrollment.
22871. (a) The employer contribution, with respect to each employee
or annuitant who is in the employment of or retired from service
with the state, including an academic position with the California
State University, or is a survivor of that person, shall be adjusted
by the Legislature in the annual Budget Act. Those adjustments shall
be based on the principle that the employer contribution for each
employee or annuitant shall be an 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 employee or 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 a
basic health benefit plan shall be counted for purposes of
calculating the employer contribution under this section.
(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.5. (a) Notwithstanding Section 22871, the employer
contribution with respect to each excluded employee, as defined by
subdivision (b) of Section 3527, who is otherwise eligible shall be
determined by the Department of Personnel Administration subject to
the appropriation of funds by the Legislature.
(b) Notwithstanding Section 22871, the employer contribution with
respect to each state employee, as defined by subdivision (c) of
Section 3513, who is otherwise eligible shall be determined through
the collective bargaining process subject to the appropriation of
funds by the Legislature.
22871.6. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Unit 9
shall be as described in subdivision (b).
(b) Effective January 1, 2004, the employer contribution for each
employee shall be an amount equal to 80 percent of the weighted
average of the basic health benefit plan premiums for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.7. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Units 5
and 8 shall be as described in subdivision (b).
(b) (1) From January 1, 2004, to December 31, 2005, inclusive, the
employer contribution for each employee shall be an amount equal to
80 percent of the weighted average of the basic health benefit plan
premiums for an active state civil service employee enrolled for self
alone, during the benefit year to which the formula is applied, for
the four basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year. For each employee with enrolled family
members, the employer shall contribute an additional 80 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 basic health benefit plans that
had the largest active state civil service enrollment, excluding
family members, during the previous benefit year.
(2) Beginning January 1, 2006, the employer contribution for each
employee shall be an amount equal to 85 percent of the weighted
average of the basic health benefit plan premiums for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.8. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Units 16
and 19 shall be as described in subdivision (b).
(b) (1) From January 1, 2004, to December 31, 2005, inclusive, the
employer contribution for each employee shall be an amount equal to
80 percent of the weighted average of the basic health benefit plan
premiums for an active state civil service employee enrolled for self
alone, during the benefit year to which the formula is applied, for
the four basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year. For each employee with enrolled family
members, the employer shall contribute an additional 80 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 basic health benefit plans that
had the largest active state civil service enrollment, excluding
family members, during the previous benefit year.
(2) Beginning January 1, 2006, the employer contribution for each
employee shall be an amount equal to 85 percent of the weighted
average of the basic health benefit plan premium for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22871.9. (a) Notwithstanding Section 22871, subdivision (b) of
Section 22871.5, or any other provision of this article, the employer
contribution with respect to employees in State Bargaining Units 1,
4, 10, 11, 14, 15, 17, 20, and 21 shall be as described in
subdivision (b).
(b) Effective January 1, 2004, the employer contribution for each
employee shall be an amount equal to 80 percent of the weighted
average of the basic health benefit plan premiums for an active state
civil service employee enrolled for self alone, during the benefit
year to which the formula is applied, for the four basic health
benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the employer
shall contribute an additional 80 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 basic health benefit plans that had the largest active state
civil service enrollment, excluding family members, during the
previous benefit year.
(c) The employer contribution provided under this section is not
applicable unless and until the effective date of the employee's
enrollment in an approved health benefit plan.
(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
22872. If an out-of-state employee is enrolled in a health benefit
plan, policy, contract, service agreement, or arrangement described
in Section 22857 and elects to receive the benefits provided by this
part, the state and the employee shall contribute and disburse a
portion of the cost of providing the benefit coverage in the same
amounts and in a like manner as is provided for contributions,
withholdings, appropriations, and payments for health benefit plans
under Sections 22871, 22880, 22881, 22883, 22885, and 22913.
Disbursements may be made to any person, association, corporation,
insurer, or other entity responsible for providing the benefit
coverage, except that the state shall make no contribution to the
Public Employees' Contingency Reserve Fund, for other than
administrative expense, with respect to an out-of-state employee and
the fund may not be made available to any extent or for any purpose
other than payment of administrative costs with respect to the
employee or the plan, policy, contract, service agreement, or
arrangement in which he or she is enrolled under this part.
22873. (a) Notwithstanding Section 22871, a state employee first
hired on or after January 1, 1985, may not be vested for the full
employer contribution payable for annuitants unless he or she has 10
years of credited state service at the time of retirement. The
employer contribution payable for annuitants with less than 10 years
of service shall be prorated based on credited state service at the
time of retirement. This section shall apply only to state employees
who retire for service. For purposes of this section, "state service"
includes all municipal, superior, and justice court services
rendered by a justice of the Supreme Court or court of appeal, or by
a judge of the superior court.
(b) This section does not apply to employees of the California
State University or of the Legislature.
22874. (a) Notwithstanding Sections 22870, 22871, and 22873, a
state employee, defined by subdivision (c) of Section 3513, who
becomes a state member of the system after January 1, 1989, may not
receive any portion of the employer contribution payable for
annuitants unless the person is credited with 10 years of state
service at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the 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
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation. Notwithstanding
Section 22826, for purposes of this section, credited state service
includes service to the state for which the employee, pursuant to
Section 20281.5, did not receive credit.
(d) This section does not apply to employees of the California
State University, the judicial branch, or the Legislature.
22874.1. (a) Notwithstanding Sections 22870, 22871, 22873, and
22874 a state employee, defined by subdivision (c) of Section 3513,
who is employed by the state for the first time, and who is
represented by State Bargaining Unit 12, who becomes a state member
of the system on or after January 1, 2011, may not receive any
portion of the employer contribution payable for annuitants unless
the person is credited with 15 years of state service at the time of
retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table:
Credited Years
Years of Service Percentage
Contribution
of Employer
Contribution
15.......................... 50
16.......................... 55
17.......................... 60
18.......................... 65
19.......................... 70
20.......................... 75
21.......................... 80
22.......................... 85
23.......................... 90
24.......................... 95
25 or more.................. 100
(c) This section shall apply only to state employees who retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation. Notwithstanding
Section 22826, for purposes of this section, credited state service
includes service to the state for which the employee, pursuant to
Section 20281.5, did not receive credit.
(d) This section does not apply to:
(1) Former state employees previously employed before January 1,
2011, who return to state employment on or after January 1, 2011.
(2) State employees hired prior to January 1, 2011, who were
subject to Section 20281.5 during the first 24 months of state
employment.
(3) State employees hired prior to January 1, 2011, who become
subject to representation by State Bargaining Unit 12 on or after
January 1, 2011.
(4) State employees on an approved leave of absence employed
before January 1, 2011, who return to active employment on or after
January 1, 2011.
(5) State employees hired after January 1, 2011, who are first
represented by a state bargaining unit other than State Bargaining
Unit 12.
(6) Employees of the California State University, the judicial
branch, or the Legislature.
(e) Notwithstanding Section 22875, this section shall also apply
to a related state employee who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513, and an officer
or employee of the executive branch of state government who is not a
member of the civil service who met the requirements of this section
when employed by the state for the first time.
22875. (a) Notwithstanding Sections 22870, 22871, 22873, and 22874,
a state employee who becomes a state member of the system after
January 1, 1990, and is either excluded from the definition of a
state employee in subdivision (c) of Section 3513, or a nonelected
officer or employee of the executive branch of government who is not
a member of the civil service, may not receive any portion of the
employer contribution payable for annuitants, unless the employee is
credited with 10 years of state service, as defined by this section,
at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the 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
(c) This section shall apply only to state employees who retire
for service.
(d) Benefits provided to an employee subject to this section shall
be applicable to all future state service.
(e) For the purposes of this section, "state service" means
service rendered as an employee or an appointed or elected officer of
the state for compensation. Notwithstanding Section 22826, for
purposes of this section, credited state service includes service to
the state for which the employee, pursuant to Section 20281.5, did
not receive credit.
(f) This section does not apply to employees of the California
State University, the judicial branch, or the Legislature.
22875.5. (a) If the state has assumed from a public agency a
function and the related personnel, service rendered by that
personnel for compensation as employees or appointed or elective
officers of that public agency may not be credited as state service
for the purposes of Section 22874 or 22875, unless both of the
following apply:
(1) The former employer has paid or agreed to pay the state the
amount actuarially determined to equal the cost for any employee
health benefits that were vested at the time that the function and
the related personnel were assumed by the state.
(2) The Department of Finance finds that the contract contains a
benefit factor sufficient to reimburse the state for the amount
necessary to fully compensate for the postretirement health benefit
costs of those personnel.
(b) For noncontracting public agencies, the state agency that has
assumed the function shall certify the completed years of public
agency service to be credited to the employee as state service credit
under Section 22874 or 22875.
22876. (a) For the purpose of meeting the vesting requirements of
Section 22873, employees of the County of Merced who became employees
of the state as a result of the state's assuming firefighting
functions for that county shall be credited with state service for
each completed year of service with the county that would have been
credited by the county for the vesting of postretirement health
benefits. The definition of "state service" does not apply to
employees of the County of Merced who became employees of the state
as a result of the state assuming firefighting functions for the
county on or before August 1, 1988.
(b) Notwithstanding Section 22875.5, for the purposes of meeting
the vesting requirements of Section 22873, 22874, or 22875, employees
of the Cities of Rubidoux and Coachella who become employees of the
state, on or before December 31, 1990, as a result of the state's
assuming firefighting functions for the city, shall be credited with
state service for each completed year of service with the city. The
city shall identify those employees and provide the corresponding
service credit information to the board.
(c) No employee whose firefighting function was transferred to the
state after December 31, 1990, shall receive credit toward
postretirement health benefits vesting unless the former employer
agrees to reimburse the state for the costs of that credit in
accordance with Section 22875.5.
22877. (a) As used in this section, the following definitions shall
apply:
(1) "Coinsurance" means the provision of a health benefit plan
design that requires the health benefit plan and state employee to
share the cost of hospital or medical expenses at a specified ratio.
(2) "Deductible" means the annual amount of out-of-pocket medical
expenses that a state employee must pay before the health benefit
plan begins paying for expenses.
(3) "Program" means the Rural Health Care Equity Program.
(4) "Rural area" means an area in which there is no board-approved
health maintenance organization plan available for enrollment by
state employees residing in the area.
(b) (1) The Rural Health Care Equity Program is hereby established
for the purpose of funding the subsidization and reimbursement of
premium costs, deductibles, coinsurance, and other out-of-pocket
health care expenses paid by eligible employees living in rural areas
that would otherwise be covered if the state employee was enrolled
in a board-approved health maintenance organization plan. The program
shall be administered by the Department of Personnel Administration
or by a third-party administrator approved by the Department of
Personnel Administration in a manner consistent with all applicable
state and federal laws. The board shall determine the rural area for
each subsequent fiscal year, at the same time that premiums for
health maintenance organization plans are approved.
(2) Separate accounts shall be maintained within the program for
all of the following:
(A) Employees, as defined in subdivision (c) of Section 3513.
(B) Excluded employees, as defined in subdivision (b) of Section
3527.
(c) Moneys in the program shall be allocated to the respective
accounts as follows:
(1) The contribution provided by the state with respect to each
employee, as defined in subdivision (c) of Section 3513, who lives in
a rural area and is otherwise eligible, shall be an amount
determined through the collective bargaining process.
(2) The contribution provided by the state with respect to each
excluded employee, as defined in subdivision (b) of Section 3527, who
lives in a rural area and is otherwise eligible, shall be an amount
equal to, but not to exceed, the amount contributed pursuant to
paragraph (1).
(3) If an eligible employee enters or leaves service with the
state during a fiscal year, contributions for the employee shall be
made on a pro rata basis. A similar computation shall be used for
anyone entering or leaving the bargaining unit, including a person
who enters State Bargaining Unit 5 by promotion during a fiscal year.
(d) Each fund of the State Treasury, other than the General Fund,
shall reimburse the General Fund for any sums allocated pursuant to
subdivision (c) for employees whose compensation is paid from that
fund. That reimbursement shall be accomplished using the following
methodology:
(1) On or before December 1 of each year, the Department of
Personnel Administration shall provide a list of active state
employees who participated in the program during the previous fiscal
year to each employing department.
(2) On or before January 15 of each year, each department that
employed an active state employee identified by the Department of
Personnel Administration as a participant in the program shall
provide the Department of Personnel Administration with a list of the
funds used to pay each employee's salary, along with the proportion
of each employee's salary attributable to each fund.
(3) Using the information provided by the employing departments,
the Department of Personnel Administration shall compile a list of
program payments attributable to each fund. On or before February 15
of each year, the Department of Personnel Administration shall
transmit this list to the Department of Finance.
(4) The Department of Finance shall certify to the Controller the
amount to be transferred from the unencumbered balance of each fund
to the General Fund.
(5) The Controller shall transfer to the General Fund from the
unencumbered balance of each impacted fund the amount specified by
the Department of Finance.
(6) To ensure the equitable allocation of costs, the Director of
the Department of Personnel Administration or the Director of Finance
may require an audit of departmental reports.
(e) Notwithstanding any other law and subject to the availability
of funds, moneys within the program shall be disbursed for the
benefit of eligible employees. The disbursements shall subsidize the
preferred provider plan premiums for the employee by an amount equal
to the difference between the weighted average of board-approved
health maintenance organization premiums and the lowest
board-approved preferred provider plan premium available under this
part, and reimburse the employee for a portion or all of his or her
incurred deductible, coinsurance, and other out-of-pocket
health-related expenses that would otherwise be covered if the
employee and his or her family members were enrolled in a
board-approved health maintenance organization plan. These subsidies
and reimbursements shall be provided as determined by the Department
of Personnel Administration, which may include, but is not limited
to, a supplemental insurance plan, a medical reimbursement account,
or a medical spending account plan.
(f) Subject to subdivision (h), moneys remaining in an account of
the program at the end of any fiscal year shall remain in the account
for use in subsequent fiscal years, until the account is terminated.
Moneys remaining in a program account upon termination, after
payment of all expenses and claims incurred prior to the date of
termination, shall be deposited in the General Fund.
(g) The Legislature finds and declares that the program shall be
operated for the exclusive benefit of employees of State Bargaining
Unit 5.
(h) This section shall be operative only to the extent that
funding is provided in the annual Budget Act or another statute and
solely for the benefit of employees of State Bargaining Unit 5.
(i) This section shall cease to be operative on July 3, 2010, or
on an earlier date if the board makes a formal determination that
health maintenance organization plans are no longer the most
cost-effective health benefit plans offered by the board.
(j) Notwithstanding any other law, on and after July 1, 2009, the
benefits of the Rural Health Care Equity Program shall be available
only to employees in State Bargaining Unit 5, and shall not be
available to any other employees. Pursuant to subdivision (f), any
moneys that remain in the accounts of the program on July 1, 2009,
other than moneys attributable to employees in State Bargaining Unit
5 on that date, shall be deposited in the General Fund. Benefits of
the Rural Health Care Equity Program shall cease to be available to
employees in State Bargaining Unit 5, on and after July 3, 2010, and
any moneys remaining in the accounts of the program shall be
deposited in the General Fund.
22878. A health benefit plan offered by the California Association
of Highway Patrolmen may rebate funds to participants enrolled in the
basic and Medicare health benefit plans sponsored by the
association, in order to ensure that participant out-of-pocket costs
remain at a reasonable and competitive level as determined by the
Board of Trustees of the California Association of Highway Patrolmen
Health Benefits Trust. The payments shall be made from the special
reserves of the health benefits trust fund. The amount of funds shall
be limited to the portion of special reserves for that health
benefit plan that is in excess of the amount necessary to fund the
risk up to the reinsurance attachment level. Administrative costs
incurred by the state for the implementation of this section shall be
reimbursed by the health benefits trust from the same funds.
22879. (a) The board shall pay monthly to an employee or annuitant
who is enrolled in, or whose family member is enrolled in, a Medicare
health benefit plan under this part the amount of the Medicare Part
B premiums, exclusive of penalties, except as provided in Section
22831. This payment may not exceed the difference between the maximum
employer contribution and the amount contributed by the employer
toward the cost of premiums for the health benefit plan in which the
employee or annuitant and his or her family members are enrolled. No
payment may be made in any month if the difference is less than one
dollar ($1).
(b) This section shall be applicable only to state employees,
annuitants who retired while state employees, and the family members
of those persons.
(c) With respect to an annuitant, the board shall pay to the
annuitant the amount required by this section from the same source
from which his or her allowance is paid. Those amounts are hereby
appropriated monthly from the General Fund to reimburse the board for
those payments.
(d) There is hereby appropriated from the appropriate funds the
amounts required by this section to be paid to active state
employees.
22880. The contributions of each employee and annuitant shall be
withheld from the monthly salary or retirement allowance payable to
him or her.
The employer contribution required of the state, as provided by
Sections 22881 and 22883, for any month shall be charged to the same
fund used for payment of salaries and wages from which the employee
contribution is deducted.
The employer contribution required of the state on account of each
annuitant shall be payable from the funds appropriated for that
purpose.
22881. From the General Fund in the State Treasury, there is hereby
appropriated monthly the employer contribution required of the state
under Sections 22820, 22834, 22870, 22871, and 22885 for:
(a) All employees whose compensation is paid from the General
Fund.
(b) All employees whose compensation is paid from funds of, or
funds appropriated to, the California State University.
(c) All employees who are employed by the Department of Education
or the Department of Rehabilitation and whose compensation is paid
from the Vocational Education Federal Fund, the Vocational
Rehabilitation Federal Fund, or any other fund received, in whole or
in part, as a donation to the state under restrictions preventing its
use for such contributions.
(d) All employees whose compensation is paid from the Senate
Contingent Fund, Assembly Contingent Fund, or the Contingent Fund of
the Assembly and Senate.
(e) All annuitants.
22883. (a) Each fund in the State Treasury, other than the General
Fund and the Central Service Cost Recovery Fund, shall be charged a
fair share of the employer contribution for annuitants in accordance
with Article 2 (commencing with Section 11270) of Chapter 3 of Part 1
of Division 3.
(b) From each fund in the State Treasury, other than the General
Fund and the Central Service Cost Recovery Fund, there is hereby
appropriated monthly the employer contribution required under
Sections 22870, 22871, and 22885 for all employees whose compensation
is paid from that fund.
22885. (a) The state shall, in addition to the contributions
required by Section 22870, contribute additional amounts necessary to
provide funds for the administration of this part and for the
establishment and continuation of the Public Employees' Contingency
Reserve Fund.
(b) The additional contributions shall be in amounts reasonably
adequate to pay the administrative expenses and to establish and
maintain the account within the Public Employees' Contingency Reserve
Fund provided by subdivision (b) of Section 22910, as determined by
the board and as adopted by the Legislature in an appropriate control
section of the annual Budget Act, but may not exceed, for each
employee or annuitant, the following amounts:
(1) For administrative expenses, 2 percent of the total of the
contributions made by the employee or annuitant and by the state on
behalf of the employee or annuitant for enrollment in a health
benefit plan.
(2) For the account within the Public Employees' Contingency
Reserve Fund provided by subdivision (b) of Section 22910, 4 percent
of the total of the contributions made by the employee or annuitant
and by the state on behalf of the employee or annuitant for
enrollment in a health benefit plan.
22889. 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.
