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Legislative News

Prefunding Retirement Benefit Contributions – Implementation for S06, M06 and other Excluded Employees


On August 26, 2016, ACSS met with CalHR to discuss Other Post Employment Benefit (OPEB) Prefunding for supervisors and managers tied to Bargaining Unit 6 (Peace Officers).

Below are the important issues that were discussed at the meeting:

  • Excluded Employee General Salary Increases
  • Other Post Employment Benefit (OPEB) Prefunding Implementation
  • Processing Prefunding Deductions
  • Delaying Prefunding
  • Retirement Health Benefits and Vesting for New Employees

  >> Click here to read the full text of the article.


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“California Rule” Continues to Protect Pensions Despite Marin County Court Ruling

Posted: 9/2/2016 Tags: benefits pension retirement Tags Views: 828

ACSS strives to provide members with news that matters to excluded state employees. We are on your side and fight to protect your pension and retirement benefits. The “California Rule”, created in 1955, prohibits any changes in pension benefits to state workers once they are granted. However, on August 17, 2016, a state appellate court in San Francisco concluded that the California Rule can be modified. In the case of Marin Association of Public Employees vs Marin County Employees Retirement Association, the issue of “pension spiking” (the practice of using tactical means to inflate income and benefits) opened the door to debate the validity of the long-standing California Rule.

In this case, three appellate justices determined that state employee pensions are “not an immutable entitlement.” And added that “the Legislature may, prior to the employee’s retirement, alter the formula, thereby reducing the anticipated pension…so long as the…modifications do not deprive the employee of reasonable pension.”

Pension reformers may see this ruling as a reason to continue to propose new pension reform measures.

ACSS fights to protect your pension. In fighting this battle, we joined the Californians for Retirement Security Coalition (CRS) which aims to protect pensions and retirement benefits of public employees. Steven Maviglio, spokesperson for CRS, reassures ACSS that the California Rule is not going anywhere anytime soon. Maviglio reiterates that “The California Supreme Court has repeatedly affirmed the “California Rule”, protecting pensions and maintaining that they are a vested right”. He goes on to mention that the case of Marin County is based on an unreasonable, narrow set of facts and may be appealed to the Supreme Court. Ultimately, Maviglio says “There is no reasonable conclusion that this decision opens the door to overturning the California Rule. Any significant changes would require legislative action, which will not occur this year.”

ACSS will continue to closely monitor this issue and provide you with updates.


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State Offers Rank-and-File SEIU Employees a 12 Percent Raise Over 4 Years

Posted: 8/1/2016 Tags: bargaining congress legislation poitics policy salary Tags Views: 2213

As of July 19, 2016, the Administration was in the midst of contract negotiations with 16 out of the 21 bargaining units throughout California after most state employee contracts expired on or around July 1.

SEIU Local 1000 is currently in the process of negotiating contracts with the state over 6 different bargaining units. In a document dated July 8, the state offered SEIU rank-and-file employees a 12 percent general salary increase spread out over 4 years. However, the offer would also require a 3.5 percent increase in contributions towards prefunding retirement health benefits over that time period.

Some other details of the state’s offer to SEIU-represented employees are:

  • The state would not be able to require furloughs in the first year, but count in subsequent years.
  • An 80-hour annual cash-out would be added to vacation and annual leave benefits.
  • In addition to the general salary increase, two dozen classifications would get additional raises, the largest going to Unit 1 Actuary Series (10 %) and Licensed Vocational Nurses in Unit 20 (11.5%).

On July 30, 2016, SEIU Local 1000 released a newsletter stating that the talks had come to a crossroads and they “feel that the state’s offer does not meet the priorities [the members] shared [with the state] through town halls and bargaining surveys.” SEIU Local officials did not respond for comment.

According to Ted Toppin, Lobbyist and ACSS Legislative Correspondent, “The statutory provisions of the budget extend the 2016 pay raises – and the prefunding retiree health schedules – extend to the state supervisors and managers who are linked with the rank and file employees of each bargaining unit”.

>> Click here to read more in the article from the SacBee.


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Maintenance Workers Reject Pay Increase - Dissatisfaction Over Hefty Prefunding

Posted: 7/8/2016 Tags: bargaining benefits legislation poitics policy retirement salary Tags Views: 916

On July 7, 2016, Bargaining Unit 12 Maintenance Workers (rank-and-file) rejected a pay increase agreement and authorized a strike. While the agreement proposes a ten percent increase in pay through 2019, it also requires employees to pay nearly half of the increase back toward retiree health benefits.  At this time, the impact on excluded employees (managers and supervisors) is unknown. For now, BU12 and the Employer go back to the bargaining table to discuss how much state employees should contribute to retiree health benefits.

 >>Read the full SacBee article for details...


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CalHR Releases Pay Letter for BU9 and BU10 Salary Increases

Posted: 7/7/2016 Tags: bargaining legislation policy representation salary Tags Views: 1022

CalHR released the official pay letter (PL1613) that details a 5% salary increase for managerial, supervisory and other excluded classes related to Bargaining Units 9 and 10. Effective July 1, 2016, all employees in classes/ranges M09, S09, E48, E59, M10, S10 and E59 shall receive the 5 percent increase.

The pay letter also provides documentation for pay differentials in Bargaining Unit 6.

>> Download PL1613


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