State of California M E M O R A N D U M DATE:April 3, 1995 TO: PERSONNEL MANAGEMENT LIAISONS REFERENCE CODE:95-017 THIS MEMORANDUM SHOULD BE DISTRIBUTED TO: PERSONNEL OFFICERS FROM: Department of Personnel Administration Benefits and Training Division SUBJECT: Excluded Employees - Impact to Benefits upon Movement to Represented Status CONTACT: Bruce Crain, Policy Development Frank Marr, Labor Relations (916)324-0530 CALNET: 454-0530 (916) 324-0504 CALNET:454-0504 Office Vision: DPA(BNCRAIN) Office Vision: DPA(FCMARR) INTERNET: BNCRAIN&SMTP.DPA.CA.GOV INTERNET: FCMARR&SMTP.DPA.CA.GOV Currently, employees who are designated confidential, supervisory, and managerial under the Ralph C. Dills Act receive certain leave and other benefits that exceed those provided to represented employees. This memorandum outlines how these additional benefits are affected when these excluded employees move to a represented collective bargaining identification (CBID) category. This memo does not apply to movements related to the Mid Management Reduction Program. I. Voluntary Movements (Promotion. Transfer. Demotion) Consistent with existing policy, when an employee voluntarily moves to a position in another CBID category on a permanent, limited term, or temporary basis, the employee's CBID and benefits (except on-going NDI payments) will be changed immediately to reflect the employee's new appointment. A. Leave Credit The employees will retain leave credits already earned and the department may give employees a reasonable opportunity to reduce any leave balances that exceed those applicable to the new CBID. However, all future leave earnings will be at the rates and under the terms provided for the new CBID. Employees in the annual leave program remain in the program regardless of their new CBID. B. Nonindustrial Disability Insurance (NDI) NDI payments in progress would continue at the same rate. The payment rate for any new claim period will be consistent with the new CBID, or annual leave program provisions if employee is enrolled. C. Life Insurance Employees enrolled in the State-paid group term life insurance may convert their coverage to a private life insurance policy without evidence of insurability. A conversion authorization form must be requested from Metropolitan Life Insurance Company within 31 days of termination of group term coverage. D. Long Term Disability Employees who become ineligible for Long Term Disability (LTD) due to a CBID change may continue their coverage for a maximum of 2 years by paying the premiums by check to the Hartford. The employee is responsible for making these arrangements in writing with Benefits Division staff within 30 days of the date he/she loses eligibility. (Employees whose time base becomes less than 1/2 time are not eligible to maintain LTD coverage.) Employees who complete the 2 year direct pay period are eligible to apply for a conversion policy. E. Enhanced Dental Coverage (Delta Dental - DentiCare Enhanced) An excluded employee in either the Delta Dental or DentiCare Enhanced Plans is automatically moved to the respective Basic coverage when the PAR document reflecting the CBID change is entered into SCO's employment history data base. CBID changes processed and entered by the 18th of the month will be effective the 1st of the following month. II. Adverse Actions. Probationary Rejections, Mandatory Reinstatements Movements resulting from these actions will be handled as specified above for voluntary movements. III. Involuntary Transfer - Within Same Class or Between Classes Involuntary transfer includes certain movements from supervisory to rank-and-file positions and reassignment of confidential employees to nonconfidential positions. As is currently the case, when the transfer is involuntary (but without fault) on the employee's part, the CBID will change immediately to reflect the new position. Leave balances, leave earning rates, Annual Leave, LTD and NDI payments will be handled as outlined above for voluntary transfers. However, changes in other benefits will be handled as follows: A. Life Insurance Where an employee's benefit is reduced or eliminated, the employee will be kept in the group plan at State expense for one year to give the employee a reasonable opportunity to shop for and purchase new coverage. At the end of the one year period, the employee may convert the coverage to a private policy without medical review. The new premium will be at the employee's expense. Departments should use the following procedures to initiate the one year employee paid life insurance extension. 1. Send a notice to Metropolitan Life Insurance Company, 425 Market Street, Area 14-A, San Francisco, CA 94105, Attn: State of California Administration (Re: GP #74503) indicating the employee's name, social security number, and home address; the employee's old and new CBID; and the effective date of the CBID change. 2. With the notice, enclose a check paying for one year of insurance coverage. The check should be made payable to Metropolitan Life Insurance Company. It should be for the amount indicated below: Former CBID New CBID Amount Managerial, Supervisory $ 75.00 Confidential or Excluded Managerial Represented $150.00 Supervisory, Represented $ 75.00 Confidential or Excluded 3. When more than one employee becomes subject to these provisions in a particular month, a single notice and check, covering all employees should be submitted. B. Enhanced Dental Coverage (Delta Dental or Denti Care) The primary difference between Enhanced and Basic coverage is in the benefit level for dependents. In the event of an involuntary transfer, should an employee have covered dependents who have this type of work already in progress, they should be advised to complete the work within the period of time which normally elapses before the coverage change takes effect. In the unusual situation in which this is not possible, the Dental Program at DPA should be contacted so that Enhanced coverage can be extended for an appropriate and agreed upon period to allow completion of dental work in progress at the higher benefit level. C. Enhanced 1959 Survivor Benefit If an eligible employee transfers to a noneligible position, the enhancement will end. D. Catastrophic Timebank Employees receiving time from the bank when they transferred may continue to receive available time from the bank until the specific episode related to the catastrophic illness or injury has ended. E. Sale of Residence When a nonrepresented employee accepts an assignment that requires the sale of their residence, the employee has two years to file a claim for home sale costs. Other employees have only one year to file a claim. Employees who are involuntarily transferred out of the nonrepresented category would continue to have two years to file a claim for any qualifying home sale that was required by the involuntary move or that occurred less than two years before it. IV. Temporary Assignments - General This and the next section apply to temporary assignments covered by Government Code Section 19994.7. These include training and development assignments, assignments made because of compelling management need, and return to work assignments for injured employees. Except for confidential positions, temporary assignments will not affect the employee's CBID or benefits. These will remain unchanged during the assignment since the employee is continuing to serve under the same civil service appointment. Different procedures, as outlined below, are required for temporary assignments involving movement between confidential and represented positions. V. Temporary Assignments - Confidential Positions When an employee in a confidential position accepts a temporary assignment to a represented position, the employee's designation will be changed while they are on the assignment. (This should be an assignment as outlined below, rather than through a transaction submitted to the Controller's Office.) while they will continue to receive confidential benefits at State expense during its course, the employee is obligated to pay union or fair share dues where applicable. The written documentation required for these assignments should include statements indicating that (1) the employee's benefits will remain unchanged through its duration, and (2) for collective bargaining purposes, the employee will have the rights, privileges and obligations of employees in the bargaining unit containing the temporary assignment position. When the bargaining unit in question has a fair share provision in its agreement with the State, the appointing power must also give written notice to the unit's exclusive representative indicating that the employee will be subject to fair share deductions during the assignment. A copy of this notice must be sent to the State Controller's Office, Personnel/Payroll Services Division, Deduction Unit, P.O. Box 942850, Sacramento, CA 94250. When an employee accepts a temporary assignment into a confidential position, the employee's CBID will be changed to confidential and the employee will receive benefits accordingly. When the employee returns to their former position upon the conclusion of the assignment, the employee will immediately revert to the benefit package and CBID consistent with that position. VI. Redesignation of Managerial Position Upon redesignation of a managerial position to supervisor, confidential or represented, the incumbent will retain all managerial benefits and receive future benefit enhancements as long as they remain in the same position, as provided in PML Memorandum 94-20 of April 8, 1994 and PML Memorandum 94-74 of December 29, 1994. Questions on the Benefits Provisions may be referred to Bruce Crain. Questions on movement in or out of confidential positions or regarding confidential allocations should be referred to Frank Marr. Patricia Pavone, Chief Benefits and Training Division