State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2002-020

  DATE:
  May 17, 2002

  TO:
  Personnel Officers
  Personnel Transactions Supervisors
  Personnel Transactions Staff

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  Bargaining Unit 2 Added to Consolidated Benefits (CoBen) 
  and Special Dental Open Enrollment Period for Unit 2; 
  Changes to Unit 2 Dental Coverage

  CONTACT:
  William Page, Benefits Program Analyst
  (916) 445-9801, CALNET 485-9801
  FAX: (916) 322-3769
  Email: williampage@dpa.ca.gov


  Effective July 1, 2002 (June 2002 pay period), Bargaining 
  Unit 2 employees will be transitioned into CoBen.  This 
  change is a result of collective bargaining.  The 
  Department of Personnel Administration notified all Unit 2 
  employees of this change in a letter dated May 17, 2002.  
  We have attached a copy of the letter.
  
  Currently, Units 7, 8, 16, 18, and 19, as well as all 
  excluded employees, are enrolled in CoBen.
  
  CoBen Allowance Amounts
  
  Here are the CoBen allowance amounts for Unit 2 employees 
  that will take effect July 1, 2002:
  
  $230Employee only
  
  $443Employee plus one dependent
  
  $584Employee plus two or more dependents
   
  The amounts listed on page one are different from the 
  amounts in the 2002 CoBen handbook.  When you distribute 
  the CoBen handbook, please make sure to note this 
  difference for Unit 2 employees.
  
  Dental Coverage Changes for Some Unit 2 Employees
  
  The transition to CoBen affects dental coverage for some 
  Unit 2 employees as follows:
  
  --The 24-month restriction on Delta enrollments is lifted 
  for Unit 2 employees.  This is the restriction that 
  requires new employees to be in State service for two years 
  before they are allowed to enroll in a Delta plan. 
  
  --The Cash Option for dental-only benefits is permanently 
  eliminated for Unit 2.  Any Unit 2 employee who currently 
  receives $12/month cash in lieu of dental benefits will 
  stop receiving this cash effective July 1, 2002 (June 2002 
  pay period).  We will continue to offer the cash option for 
  health and dental benefits combined.
  
  A special Dental Open Enrollment period will be held 
  June 3-28, 2002, for Unit 2 employees affected by the two 
  changes noted above.
  
  During this special open enrollment period, Unit 2 
  employees who currently are covered by the 24-month 
  restriction may enroll in Delta Dental.  Unit 2 employees 
  who currently receive the $12/month cash option for dental 
  benefits may enroll in any State-sponsored dental plan 
  during this period.  Employees will not be allowed to add 
  or delete dependents, make changes to their medical 
  coverage, or enroll in CoBen Cash during this open 
  enrollment period.
  
  Dental Enrollment Form Requirements
  
  If a Unit 2 employee affected by these changes needs to 
  enroll in or change dental coverage during the special open 
  enrollment, he or she must fill out a STD. 692 form.  All 
  transactions will be processed by the State Controller's 
  Office retroactive to July 1, 2002 (June 2002 pay period).  
  Here is information the personnel office will need to enter 
  on the form:
  
  For the Permitting Event Date, enter 6/3/02.
  
  For the Effective Date, enter 7/1/02. 
  
  For the Permitting Event Code, enter 08. 
  
  In the Remarks section, enter BU 2 COBEN.
   
  Deadlines to Submit Dental Form
  
  6/28/02 is the last day for the employee to submit the 
  STD. 692 form to his or her personnel office.
  
  7/15/02 is the last day for the State Controller's Office 
  to receive the completed form from departmental personnel 
  offices.
  
  8/5/02 is the last day for the State Controller's Office 
  to receive forms that were returned to personnel offices 
  for correction.
  
  CoBen Cash Option for Health and Dental Benefits
  
  Unit 2 employees who want to enroll in the CoBen Cash 
  Option to receive cash in lieu of both their health and 
  dental coverage need to be aware of a rule that applies to 
  all employees in CoBen.  An employee who takes the cash 
  option is prohibited from enrolling again in a State-
  sponsored dental plan for three years.  However, there are 
  exceptions to this rule.  The exceptions are:
  
  1) The employee loses his/her other dental coverage;
  2) The employee cancels the CoBen Cash Option for both 
  health and dental during open enrollment; or
  3) The employee cancels CoBen Cash for both health and 
  dental due to a "permitting" event.
  
  Vision Benefits
  
  We will continue to automatically enroll eligible Unit 2 
  employees in the State's Vision Plan; employees who 
  previously declined this coverage will be enrolled upon 
  conversion to CoBen on July 1, 2002.  State vision 
  coverage is mandatory under CoBen.
  
  For More Information
  
  Please be sure to distribute the 2002 CoBen handbook to 
  Unit 2 employees requesting information about CoBen and 
  answer any questions they have about the program.  If you 
  have questions, please call William Page, Benefits Program 
  Analyst, at (916) 445-9801 or CALNET 485-9801.
  
  
  
  Terri Westbrook, Chief
  Benefits Division
  
  Attachments will be distributed via mail.