State of California

  M E M O R A N D U M

  REFERENCE CODE:
  99-021

  DATE:
  April 19, 1999

  TO:
  Employee Benefit Officers
  Personnel Officers

  FROM:
  Department of Personnel Administration
  Policy Development Office

  SUBJECT:
  Modified First Tier Membership Rights

  CONTACT:
  Oscar A. Alarcon
  (916) 324-0523, CALNET 454-0523
  FAX: (916) 324-0524
  OFFICE VISION: DPA(OSCARALARCON)
  INTERNET: OscarAlarcon@dpa.ca.gov


  State miscellaneous and industrial employees represented by 
  State Bargaining Units 8 (CDF Firefighters), 16 (Union of 
  American Physicians and Dentists) and 19 (American 
  Federation of State, County and Municipal Employees) have 
  become eligible for membership in the new Modified First 
  Tier Plan under the California Public Employees' Retirement 
  System (CalPERS).  The Modified First Tier Plan was 
  provided by memorandum of understanding, effective April 1, 
  1998.  This new program is not yet available for 
  supervisors or managers associated with these bargaining 
  units.
  
  Unless qualified to elect First Tier coverage due to 
  previous membership, newly hired employees who are in these 
  bargaining units should continue to be brought into 
  membership under the State Second Tier Plan.  However, 
  these employees should be notified that they have the right 
  to elect membership under the Modified First Tier.  All new 
  employees should be advised of this option, and we suggest 
  that your new employee orientation package include CalPERS' 
  "Modified First Tier Election Package."  CalPERS' package 
  (PERS-MSD-317A) provides information that compares 
  retirement benefits offered by the Second Tier and the 
  Modified First Tier, and it also has the necessary election 
  form.
  
   
  Current Second Tier members in these bargaining units have the right 
  to elect membership in the Modified First Tier plan.  CalPERS has sent 
  out personal notices about this election to those Second Tier members 
  who were employed as of July 1, 1998.  However, this notice may not 
  have been provided to those who have been hired since that date.  We 
  are requesting that you notify those employees at this time.
  
  If you have any questions regarding the memorandum of understanding or 
  the Modified First Tier Plan, please contact Oscar Alarcon at DPA.  
  Questions regarding membership eligibility or buyback provisions 
  should be directed to the Member Services Division, CalPERS, at (916) 
  326-3141.
  
  
  
  
  Peter J. Strom, Chief
  Policy Development Office