Amended IN Assembly April 26, 2021 Amended IN Assembly March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1092Introduced by Assembly Member Mayes(Coauthors: Assembly Members Berman, Daly, Friedman, Grayson, and Levine)(Coauthors: Senators Allen, Caballero, and Glazer)February 18, 2021 An act to add Section Sections 7514.8 and 21228 to the Government Code, relating to public employment.LEGISLATIVE COUNSEL'S DIGESTAB 1092, as amended, Mayes. Public employees retirement: health benefits.Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS), which provides defined benefits to its members based on age at retirement, service credit, and final compensation. PERL vests the Board of Administration of PERS with management and control of the system.Existing law, the Public Employees Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of PERS, governs the funding and provision of postemployment health care benefits for eligible retired public employees and their families. PEMHCA authorizes an employee or annuitant, as those terms are defined, of the state to enroll in a health benefit plan approved or maintained by the Board of Administration of PERS. The act generally requires the state and each employee or annuitant to 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.PEMHCA also prohibits, among other things, employees, annuitants, and family members who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare from being enrolled in a basic health benefit plan. PEMHCA, however, permits the employee, annuitant, or family member to enroll in a Medicare health benefit plan if they are enrolled in Part A and Part B of Medicare.PEMHCA establishes the Public Employees Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. This fund is continuously appropriated, except with respect to administrative purposes, as specified. PEMHCA also establishes the Annuitants Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding health care coverage for annuitants, including administrative costs.This bill would preclude a person who has retired under PERS and who obtains work with a subsequent employer from receiving any health benefits offered under PEMHCA if the persons subsequent employer offers health care coverage that provides reasonably comparable benefits. The bill would grant the person reinstatement rights upon termination of employment with the subsequent employer. The bill would authorize the board to request information regarding employment and health care coverage offered by a persons subsequent employer.The bill would also prohibit, except as provided and by January 1, 2023, persons who have retired under a public retirement system, as defined, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare from being enrolled in a basic health benefit plan, as defined, offered by the public retirement system.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 7514.8 is added to the Government Code, to read:7514.8. (a) Notwithstanding any other provision of law, except as set forth in Section 22844, by January 1, 2023, persons who have retired under a public retirement system, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare shall not be enrolled in a basic health benefit plan offered by the public retirement system.(b) If the terms of a contract, including a memorandum of understanding, that is in effect on January 1, 2022, would be impaired by this section, this section shall not apply to that contract until the expiration of that contract. A renewal, amendment, or any other extension of that contract shall be subject to the requirements of this section.(c) For purposes of this section, the following definitions shall apply:(1) Basic health benefit plan means a health benefit plan or health benefits other than those that provide supplemental benefits provided by Medicare.(2) Health benefit plan shall have the same meaning as defined in Section 22777.(3) Public retirement system shall have the same meaning as defined in subdivision (j) of Section 7522.04.SECTION 1.SEC. 2. Section 21228 is added to the Government Code, to read:21228. (a) A person who has retired under this system and obtains work with a subsequent employer shall not receive any health benefits offered under the Public Employees Medical and Hospital Care Act if the persons subsequent employer offers health care coverage to the employee that provides reasonably comparable benefits to those provided under the act.(b) If the person terminates employment with the subsequent employer, the person may have health benefits under the Public Employees Medical and Hospital Care Act reinstated.(c) For purposes of implementing this section, the board may request information regarding employment and health care coverage offered by a persons subsequent employer.
Amended IN Assembly April 26, 2021 Amended IN Assembly March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1092Introduced by Assembly Member Mayes(Coauthors: Assembly Members Berman, Daly, Friedman, Grayson, and Levine)(Coauthors: Senators Allen, Caballero, and Glazer)February 18, 2021 An act to add Section Sections 7514.8 and 21228 to the Government Code, relating to public employment.LEGISLATIVE COUNSEL'S DIGESTAB 1092, as amended, Mayes. Public employees retirement: health benefits.Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS), which provides defined benefits to its members based on age at retirement, service credit, and final compensation. PERL vests the Board of Administration of PERS with management and control of the system.Existing law, the Public Employees Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of PERS, governs the funding and provision of postemployment health care benefits for eligible retired public employees and their families. PEMHCA authorizes an employee or annuitant, as those terms are defined, of the state to enroll in a health benefit plan approved or maintained by the Board of Administration of PERS. The act generally requires the state and each employee or annuitant to 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.PEMHCA also prohibits, among other things, employees, annuitants, and family members who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare from being enrolled in a basic health benefit plan. PEMHCA, however, permits the employee, annuitant, or family member to enroll in a Medicare health benefit plan if they are enrolled in Part A and Part B of Medicare.PEMHCA establishes the Public Employees Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. This fund is continuously appropriated, except with respect to administrative purposes, as specified. PEMHCA also establishes the Annuitants Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding health care coverage for annuitants, including administrative costs.This bill would preclude a person who has retired under PERS and who obtains work with a subsequent employer from receiving any health benefits offered under PEMHCA if the persons subsequent employer offers health care coverage that provides reasonably comparable benefits. The bill would grant the person reinstatement rights upon termination of employment with the subsequent employer. The bill would authorize the board to request information regarding employment and health care coverage offered by a persons subsequent employer.The bill would also prohibit, except as provided and by January 1, 2023, persons who have retired under a public retirement system, as defined, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare from being enrolled in a basic health benefit plan, as defined, offered by the public retirement system.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly April 26, 2021 Amended IN Assembly March 18, 2021
Amended IN Assembly April 26, 2021
Amended IN Assembly March 18, 2021
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 1092
Introduced by Assembly Member Mayes(Coauthors: Assembly Members Berman, Daly, Friedman, Grayson, and Levine)(Coauthors: Senators Allen, Caballero, and Glazer)February 18, 2021
Introduced by Assembly Member Mayes(Coauthors: Assembly Members Berman, Daly, Friedman, Grayson, and Levine)(Coauthors: Senators Allen, Caballero, and Glazer)
February 18, 2021
An act to add Section Sections 7514.8 and 21228 to the Government Code, relating to public employment.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1092, as amended, Mayes. Public employees retirement: health benefits.
Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS), which provides defined benefits to its members based on age at retirement, service credit, and final compensation. PERL vests the Board of Administration of PERS with management and control of the system.Existing law, the Public Employees Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of PERS, governs the funding and provision of postemployment health care benefits for eligible retired public employees and their families. PEMHCA authorizes an employee or annuitant, as those terms are defined, of the state to enroll in a health benefit plan approved or maintained by the Board of Administration of PERS. The act generally requires the state and each employee or annuitant to 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.PEMHCA also prohibits, among other things, employees, annuitants, and family members who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare from being enrolled in a basic health benefit plan. PEMHCA, however, permits the employee, annuitant, or family member to enroll in a Medicare health benefit plan if they are enrolled in Part A and Part B of Medicare.PEMHCA establishes the Public Employees Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. This fund is continuously appropriated, except with respect to administrative purposes, as specified. PEMHCA also establishes the Annuitants Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding health care coverage for annuitants, including administrative costs.This bill would preclude a person who has retired under PERS and who obtains work with a subsequent employer from receiving any health benefits offered under PEMHCA if the persons subsequent employer offers health care coverage that provides reasonably comparable benefits. The bill would grant the person reinstatement rights upon termination of employment with the subsequent employer. The bill would authorize the board to request information regarding employment and health care coverage offered by a persons subsequent employer.The bill would also prohibit, except as provided and by January 1, 2023, persons who have retired under a public retirement system, as defined, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare from being enrolled in a basic health benefit plan, as defined, offered by the public retirement system.
Existing law, the Public Employees Retirement Law (PERL), creates the Public Employees Retirement System (PERS), which provides defined benefits to its members based on age at retirement, service credit, and final compensation. PERL vests the Board of Administration of PERS with management and control of the system.
Existing law, the Public Employees Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of PERS, governs the funding and provision of postemployment health care benefits for eligible retired public employees and their families. PEMHCA authorizes an employee or annuitant, as those terms are defined, of the state to enroll in a health benefit plan approved or maintained by the Board of Administration of PERS. The act generally requires the state and each employee or annuitant to 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.
PEMHCA also prohibits, among other things, employees, annuitants, and family members who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare from being enrolled in a basic health benefit plan. PEMHCA, however, permits the employee, annuitant, or family member to enroll in a Medicare health benefit plan if they are enrolled in Part A and Part B of Medicare.
PEMHCA establishes the Public Employees Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. This fund is continuously appropriated, except with respect to administrative purposes, as specified. PEMHCA also establishes the Annuitants Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding health care coverage for annuitants, including administrative costs.
This bill would preclude a person who has retired under PERS and who obtains work with a subsequent employer from receiving any health benefits offered under PEMHCA if the persons subsequent employer offers health care coverage that provides reasonably comparable benefits. The bill would grant the person reinstatement rights upon termination of employment with the subsequent employer. The bill would authorize the board to request information regarding employment and health care coverage offered by a persons subsequent employer.
The bill would also prohibit, except as provided and by January 1, 2023, persons who have retired under a public retirement system, as defined, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare from being enrolled in a basic health benefit plan, as defined, offered by the public retirement system.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 7514.8 is added to the Government Code, to read:7514.8. (a) Notwithstanding any other provision of law, except as set forth in Section 22844, by January 1, 2023, persons who have retired under a public retirement system, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare shall not be enrolled in a basic health benefit plan offered by the public retirement system.(b) If the terms of a contract, including a memorandum of understanding, that is in effect on January 1, 2022, would be impaired by this section, this section shall not apply to that contract until the expiration of that contract. A renewal, amendment, or any other extension of that contract shall be subject to the requirements of this section.(c) For purposes of this section, the following definitions shall apply:(1) Basic health benefit plan means a health benefit plan or health benefits other than those that provide supplemental benefits provided by Medicare.(2) Health benefit plan shall have the same meaning as defined in Section 22777.(3) Public retirement system shall have the same meaning as defined in subdivision (j) of Section 7522.04.SECTION 1.SEC. 2. Section 21228 is added to the Government Code, to read:21228. (a) A person who has retired under this system and obtains work with a subsequent employer shall not receive any health benefits offered under the Public Employees Medical and Hospital Care Act if the persons subsequent employer offers health care coverage to the employee that provides reasonably comparable benefits to those provided under the act.(b) If the person terminates employment with the subsequent employer, the person may have health benefits under the Public Employees Medical and Hospital Care Act reinstated.(c) For purposes of implementing this section, the board may request information regarding employment and health care coverage offered by a persons subsequent employer.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 7514.8 is added to the Government Code, to read:7514.8. (a) Notwithstanding any other provision of law, except as set forth in Section 22844, by January 1, 2023, persons who have retired under a public retirement system, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare shall not be enrolled in a basic health benefit plan offered by the public retirement system.(b) If the terms of a contract, including a memorandum of understanding, that is in effect on January 1, 2022, would be impaired by this section, this section shall not apply to that contract until the expiration of that contract. A renewal, amendment, or any other extension of that contract shall be subject to the requirements of this section.(c) For purposes of this section, the following definitions shall apply:(1) Basic health benefit plan means a health benefit plan or health benefits other than those that provide supplemental benefits provided by Medicare.(2) Health benefit plan shall have the same meaning as defined in Section 22777.(3) Public retirement system shall have the same meaning as defined in subdivision (j) of Section 7522.04.
SECTION 1. Section 7514.8 is added to the Government Code, to read:
### SECTION 1.
7514.8. (a) Notwithstanding any other provision of law, except as set forth in Section 22844, by January 1, 2023, persons who have retired under a public retirement system, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare shall not be enrolled in a basic health benefit plan offered by the public retirement system.(b) If the terms of a contract, including a memorandum of understanding, that is in effect on January 1, 2022, would be impaired by this section, this section shall not apply to that contract until the expiration of that contract. A renewal, amendment, or any other extension of that contract shall be subject to the requirements of this section.(c) For purposes of this section, the following definitions shall apply:(1) Basic health benefit plan means a health benefit plan or health benefits other than those that provide supplemental benefits provided by Medicare.(2) Health benefit plan shall have the same meaning as defined in Section 22777.(3) Public retirement system shall have the same meaning as defined in subdivision (j) of Section 7522.04.
7514.8. (a) Notwithstanding any other provision of law, except as set forth in Section 22844, by January 1, 2023, persons who have retired under a public retirement system, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare shall not be enrolled in a basic health benefit plan offered by the public retirement system.(b) If the terms of a contract, including a memorandum of understanding, that is in effect on January 1, 2022, would be impaired by this section, this section shall not apply to that contract until the expiration of that contract. A renewal, amendment, or any other extension of that contract shall be subject to the requirements of this section.(c) For purposes of this section, the following definitions shall apply:(1) Basic health benefit plan means a health benefit plan or health benefits other than those that provide supplemental benefits provided by Medicare.(2) Health benefit plan shall have the same meaning as defined in Section 22777.(3) Public retirement system shall have the same meaning as defined in subdivision (j) of Section 7522.04.
7514.8. (a) Notwithstanding any other provision of law, except as set forth in Section 22844, by January 1, 2023, persons who have retired under a public retirement system, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare shall not be enrolled in a basic health benefit plan offered by the public retirement system.(b) If the terms of a contract, including a memorandum of understanding, that is in effect on January 1, 2022, would be impaired by this section, this section shall not apply to that contract until the expiration of that contract. A renewal, amendment, or any other extension of that contract shall be subject to the requirements of this section.(c) For purposes of this section, the following definitions shall apply:(1) Basic health benefit plan means a health benefit plan or health benefits other than those that provide supplemental benefits provided by Medicare.(2) Health benefit plan shall have the same meaning as defined in Section 22777.(3) Public retirement system shall have the same meaning as defined in subdivision (j) of Section 7522.04.
7514.8. (a) Notwithstanding any other provision of law, except as set forth in Section 22844, by January 1, 2023, persons who have retired under a public retirement system, annuitants of a public retirement system, and their beneficiaries who become eligible to enroll on or after January 1, 1985, in Part A and Part B of Medicare shall not be enrolled in a basic health benefit plan offered by the public retirement system.
(b) If the terms of a contract, including a memorandum of understanding, that is in effect on January 1, 2022, would be impaired by this section, this section shall not apply to that contract until the expiration of that contract. A renewal, amendment, or any other extension of that contract shall be subject to the requirements of this section.
(c) For purposes of this section, the following definitions shall apply:
(1) Basic health benefit plan means a health benefit plan or health benefits other than those that provide supplemental benefits provided by Medicare.
(2) Health benefit plan shall have the same meaning as defined in Section 22777.
(3) Public retirement system shall have the same meaning as defined in subdivision (j) of Section 7522.04.
SECTION 1.SEC. 2. Section 21228 is added to the Government Code, to read:21228. (a) A person who has retired under this system and obtains work with a subsequent employer shall not receive any health benefits offered under the Public Employees Medical and Hospital Care Act if the persons subsequent employer offers health care coverage to the employee that provides reasonably comparable benefits to those provided under the act.(b) If the person terminates employment with the subsequent employer, the person may have health benefits under the Public Employees Medical and Hospital Care Act reinstated.(c) For purposes of implementing this section, the board may request information regarding employment and health care coverage offered by a persons subsequent employer.
SECTION 1.SEC. 2. Section 21228 is added to the Government Code, to read:
### SECTION 1.SEC. 2.
21228. (a) A person who has retired under this system and obtains work with a subsequent employer shall not receive any health benefits offered under the Public Employees Medical and Hospital Care Act if the persons subsequent employer offers health care coverage to the employee that provides reasonably comparable benefits to those provided under the act.(b) If the person terminates employment with the subsequent employer, the person may have health benefits under the Public Employees Medical and Hospital Care Act reinstated.(c) For purposes of implementing this section, the board may request information regarding employment and health care coverage offered by a persons subsequent employer.
21228. (a) A person who has retired under this system and obtains work with a subsequent employer shall not receive any health benefits offered under the Public Employees Medical and Hospital Care Act if the persons subsequent employer offers health care coverage to the employee that provides reasonably comparable benefits to those provided under the act.(b) If the person terminates employment with the subsequent employer, the person may have health benefits under the Public Employees Medical and Hospital Care Act reinstated.(c) For purposes of implementing this section, the board may request information regarding employment and health care coverage offered by a persons subsequent employer.
21228. (a) A person who has retired under this system and obtains work with a subsequent employer shall not receive any health benefits offered under the Public Employees Medical and Hospital Care Act if the persons subsequent employer offers health care coverage to the employee that provides reasonably comparable benefits to those provided under the act.(b) If the person terminates employment with the subsequent employer, the person may have health benefits under the Public Employees Medical and Hospital Care Act reinstated.(c) For purposes of implementing this section, the board may request information regarding employment and health care coverage offered by a persons subsequent employer.
21228. (a) A person who has retired under this system and obtains work with a subsequent employer shall not receive any health benefits offered under the Public Employees Medical and Hospital Care Act if the persons subsequent employer offers health care coverage to the employee that provides reasonably comparable benefits to those provided under the act.
(b) If the person terminates employment with the subsequent employer, the person may have health benefits under the Public Employees Medical and Hospital Care Act reinstated.
(c) For purposes of implementing this section, the board may request information regarding employment and health care coverage offered by a persons subsequent employer.