State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2001-010

  DATE:
  February 26, 2001

  TO:
  Employee Benefit Officers
  Employee Relations Officers
  Personnel Officers

  FROM:
  Department of Personnel Administration
  Labor Relations Division

  SUBJECT:
  Health Benefit Premium Changes

  CONTACT:
  Wayne Heine, Assistant Chief, Labor Relations Division
  (916) 324-0476, CALNET 454-0476
  FAX: (916) 322-0765
   
  Email: WayneHeine@dpa.ca.gov


  The Governor signed SB 67 on February 14, 2001, ratifying 
  recent agreements negotiated between the State and 12 
  bargaining units.  This increases the employer health 
  contribution for excluded employees and for rank and file 
  employees in bargaining units 2, 5, 6, 7, 8, 9, 10, 12, 13, 
  16, 18, and 19. 
  
  The increased State contribution is retroactive to January 
  1, 2001, to coincide with the increased premiums in the 
  health plans for State employees provided through the 
  California Public Employees' Retirement System (CalPERS).  
  Accordingly, the March 1, 2001 warrant for the February pay 
  period will reflect the increased State contribution.  The 
  tax-adjusted contributions for the January and February 
  health premiums will be included in paychecks issued in 
  April.  This new State contribution is in effect for six 
  months.  It is anticipated that health benefit contribution 
  amounts will be bargained this spring when successor 
  bargaining occurs.
  
  
  The increased health benefits contribution rates are as 
  follows:
  
  Units 2, 9, 10, 12, and 13
  
  
  Employee only               $182.00
  Employee plus one           $362.00
  Employee plus two or more   $473.00
  Unit 5
  
  Employee only               $187.00
  Employee plus one           $371.00
  Employee plus two or more   $485.00
  
  Members enrolled in the CAHP Health Benefits Trust will not see a 
  decrease in their monthly member out-of-pocket contribution.  
  Employees with questions regarding this matter should be directed to 
  contact the CAHP.
  
  Unit 6
  
  Employee only               $168.69
  Employee plus one           $373.69
  Employee plus two or more   $509.69
  
  
  Units 7, 8, 16, 18, and 19 (Bargaining Units with CoBen)
  
  Employee only               $222.00
  Employee plus one           $427.00
  Employee plus two or more   $563.00
  
  Excluded Employees (CoBen)
  
  Employee only               $223.00
  Employee plus one           $438.00
  Employee plus two or more   $577.00
  
  Members enrolled in the CAHP Health Benefits Trust will not see a 
  decrease in their monthly member out-of-pocket contribution.  
  Employees with questions regarding this matter should be directed to 
  contact the CAHP.  (S05 & M05)
  
  
  In addition to agreeing to the increase in the employer's 
  health benefit contribution, the 12 bargaining units agreed 
  to establish joint labor-management, cost containment 
  committees for the purpose of exploring and developing 
  innovative cost-containment concepts and proposals.  The 
  newly established committees will work cooperatively with 
  CalPERS and the health plans seeking to limit premium 
  increases and other costs, while maintaining an affordable 
  and effective health benefit program.  The committees will 
  urge CalPERS to fully explore any and all options in an 
  effort to achieve cost-containment goals.
  
  If you have any questions, please contact the Department of 
  Personnel Administration at (916) 324-0476 and speak with 
  the Labor Relations Officer assigned to the excluded 
  program or the specific bargaining unit.
  
  
  
  
  Wayne Heine
  Assistant Chief, Labor Relations Division