State of California

          M E M O R A N D U M


          TO:       PERSONNEL MANAGEMENT LIAISONS           DATE:  January
          13, 1995
                                                  Reference Code:  95-02

                    THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:

                         ALL PERSONNEL OFFICERS, PERSONNEL TRANSACTION
                         SUPERVISORS AND PERSONNEL TRANSACTION STAFF

          FROM:     Department of Personnel Administration


          SUBJECT:  Group Legal Services Plan -- Annual Open Enrollment

             As you may be aware, the State's contract with the Group Legal
          Services Plan provider, Midwest Legal Services (MLS), will expire
          on March 31, 1995.  The Department of Personnel Administration
          (DPA) recently completed a competitive bidding process to select
          a plan provider.  Midwest Legal Services was awarded the contract
          which will be effective from April 1, 1995 through March 31,
          1997.

             The annual open enrollment for the Group Legal Services Plan
          will be conducted from March 2, 1995 through May 1, 1995.  This
          enrollment process is open to all eligible employees.  Since
          implementation of the plan in 1993, employee enrollment has been
          steadily increasing.  There are approximately 150,000 employees
          eligible for this benefit.
             Currently, over 8,000 employees are enrolled.  Current
          enrollees are not required to   reenroll to continue coverage.
          However, if they wish to change their level of coverage,  this
          should be done during the open enrollment.   In mid-February MLS
          will be mailing  an enrollment package directly to the homes of
          all employees who are eligible but not  enrolled in the Plan.
          This package will include a plan brochure as well as an
          enrollment form for the employees' use.

             Employees whose enrollment forms are correctly completed and
          are received at the State Controller's Office by March 10th will
          have an April 1, 1995 effective date.  Forms received by April
          10th will have a May 2, 1995 effective date.  Forms submitted by
          May 1st and forwarded to SCO by May 10th will have a June 1, 1995
          effective date.
             Under the new contract with MLS, the monthly premium amounts
          will change.
             Beginning April 1, 1995, the new monthly premiums will be as
          follows:

                     Individual employee                 $ 9.07

                     Employee and one or               $16.52
                     more dependents

             The new premium for individual coverage represents a decrease
          of $1.86 per month. The premium for family coverage is increasing
          by $.33 cents per month.

             Both the Group Legal Services Plan enrollment form and
          brochure have been revised.
             Departmental Personnel Offices should ensure that an adequate
          supply of forms and brochures are in stock prior to the open
          enrollment.  Additional supplies should be  ordered by calling
          MLS at 1-800-247-4184.  The DPA does not maintain these forms for
          distribution to departments.

             We appreciate your continued assistance in communicating
          information regarding the open enrollment and the legal plan to
          eligible employees and personnel staff responsible for processing
          enrollment documents.  Your participation and cooperation is
          crucial to the continued growth and success of the Group Legal
          Services Plan.  To assist you in answering employees' questions,
          we have attached several documents including a "Question and
          Answer" sheet that addresses 20 of the most commonly asked
          questions and the Group Legal Services Plan section from DPA's
          Benefits Training Manual.  MLS representatives are also available
          to answer calls directly from employees and they can be reached
          by calling 1-800-247-4184.

             If you have any questions regarding the Group Legal Services
          Plan, please call Susan Wong at (916) 324-9378 (Calnet 454-9378)
          or Vallita Lewis at (916) 324-9362 (Calnet 454-9362).





             Robert K. Clifford, Assistant Chief
             Benefits and Training Division

             Attachments