State of California

  M E M O R A N D U M

  REFERENCE CODE:
  98-059

  DATE:
  December 7, 1998

  TO:
  Accounting Officers

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  Changes to the Payroll Clearance Report

  CONTACT:
  William Page, Benefits Program Analyst
  (916) 445-9801, CALNET 485-9801
  FAX: (916) 322-3769
  OFFICE VISION: DPA(WILLIAMPAGE)
  INTERNET: WILLIAMPAGE.DPA.CA.GOV


  The purpose of this memo is to provide information to 
  department Accounting Offices regarding the changes that 
  will occur on the payroll clearance report (SM62) for the 
  December 1998 pay period as a result of implementation of 
  Consolidated Benefits (CoBen).
  
  Effective January 1, 1999 (December 1998 pay period) 
  excluded employees (except those employees designated E88, 
  E89, E90, and E91), employees in Bargaining Unit 8 (BU 8) 
  and Bargaining Unit 19 (BU 19) will be transitioned into 
  CoBen.  Employees in Bargaining Unit 16 (BU 16) were 
  transitioned into CoBen effective July 31, 1998 (July 1998 
  pay period).
  
  Under CoBen, the State will provide one "combined" employer 
  contribution amount (benefit alllowance) for an employee's 
  health, dental, and vision benefits.
  
  If the combined cost of an employee's health, dental, and 
  vision benefits is less than the benefit allowance provided 
  by the State, the excess money will be paid to the employee 
  as taxable cash (CoBen Cash).  In addition, employees can 
  elect CoBen Cash in lieu of their health and dental plan or 
  health plan only.
  
  Currently, the payroll clearance report reflects the object 
  of expenditure codes as follows:
  
  103134            FlexElect Cash
  103105            Health - State share
  103104            Dental - State share (pretax or 
  traditional)
  103136            Vision - State share
   
  
  Under CoBen, the expenditures for benefit allowance and 
  CoBen Cash/Excess Cash will be included with the current 
  method of reporting benefit dollars for non-CoBen employees 
  under the FlexElect object code   103134 on the payroll 
  clearance report.
  
  Should you have any questions regarding the above 
  information, please contact William Page at (916) 445-9801 
  or CALNET 485-9801.
  
  
  
  Kathie Vaughn, Chief
  Benefits Division