State of California

             M E M O R A N D U M


             DATE:April 6, 1995
             REFERENCE CODE:95-015

             TO:PERSONNEL MANAGEMENT LIAISONS

             THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:

             Labor Relations Officers
             Personnel Officers


             FROM:Department of Personnel Administration
             Classification and Compensation Division


             SUBJECT:Mid-Management Reduction Red Circle Benefits


             CONTACT:
Departmental Classification and Compensation Division  Analyst
(916) 324-9381, CALNET 454-9381


The concept of granting red circle benefits to  
managers and supervisors who demote as part of the  
mid-management reductions was implemented in PML  
Memorandum 94-20 of April 8, 1994.  The content of  
PML Memorandum 94-74 of December 29, 1994 explained  
that the red circle benefits would not be frozen as  
are red circle salaries, because this would create an  
administrative nightmare.  Instead, a manager or  
supervisor whose benefits were red circled would  
receive the current and future benefits of managers  
or supervisors.

Some departments have asked for a list of the  
benefits that can be red circled.  The following is a  
list of those benefits.

@Annual Leave Program Participation
@Dental Insurance (Enhanced)
@Health Benefits
@Leave Credits Already Earned
@Leave Credit Accumulation Rate
@Life Insurance
@Long Term Disability 
@Nonindustrial Disability Insurance  
Payments (Current and Future)
@Sale of Residence Claim Time Limit (2  
years)
@ Survivor Benefit (Enhanced 1959)
@Vacation Buy Back










It is essential to remember that red circle benefits  
may be offered only to participants in the mid- 
management reduction program which ends on June 30,  
1995, and that they must be approved in advance by  
the Department of Personnel Administration (DPA).  

If you have any questions, please contact your  
Classification and Compensation Division Analyst at  
the DPA.




Mike Vargas
Program Manager