State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2000-003

  DATE:
  January 5, 2000

  TO:
  Personnel Officers
  Return-to-Work/Claims Coordinators

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  NextSTEP Program - Changes

  CONTACT:
  Keith Mentzer, Worker's Compensation Coordinator
  (916) 445-9792, CALNET 485-9792
  FAX: (916) 322-3769
  OFFICE VISION: DPA(KeithMentzer)
  INTERNET: KeithMentzer@DPA.CA.GOV


  The purpose of this memo is to notify the agencies about 
  changes in the law regarding NextSTEP disability 
  retirements.  The NextSTEP program was designed to help the 
  participating agencies return state employees who were 
  unable to return to work due to an industrial injury to an 
  alternative position within state service.  The program 
  involved a job search, supplemental payments to employees 
  who found alternative placement with the state in a 
  position that paid less than their pre-injury position, and 
  enhanced disability retirement benefits to those who were 
  unsuccessful at finding alternative employment.  
  Participation was subject to an agreement with the union 
  and only affected employees in bargaining units 1, 4, 15, 
  18, and 20 who were employed with California Youth 
  Authority, Department of Corrections, and the Department of 
  Mental Health.  
  
  The NextSTEP program is being phased out for dates of 
  injury after December 31, 1999.
  
  During the recent contract negotiations, the affected 
  unions and the State of California agreed to support 
  legislation that would repeal the NextSTEP Program.  As a 
  result, the following sentence was inserted into Government 
  Code sections 19876.5, 21159, 21160, 21161, and 21195: This 
  section of law shall not apply to job related or incurred 
  illnesses and injuries that occur on or after January 1, 
  2000.
   
  Any claim for industrial disability that was filed under 
  NextSTEP prior to January 1, 2000 will not be affected by 
  this change.  The job search and other aspects of the 
  NextSTEP retirement program will continue.  An employee in 
  one of the participating bargaining units will continue to 
  be eligible for the NextSTEP program, as long as their date 
  of injury was prior to January 1, 2000.  The actual 
  application for retirement can be made after January 1, 
  2000, as long as the injury was prior to that date.  
  Qualified NextSTEP applicants who are placed on the SROA 
  lists will remain active for the one year placement 
  requirement.
  
  If you have any questions regarding this memo, please 
  contact Keith Mentzer at (916) 445-9792/Calnet 485-9792.
  
  
  
  
  Kathie Vaughn, Chief
  Benefits Division