PML 99-066
                December 13, 1999
                Page 1




State of California

     M E M O R A N D U M


                                                           DATE: December 13, 1999
     TO:             PERSONNEL MANAGEMENT LIAISONS    REFERENCE CODE: 99-066

                THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:

                     Personnel Officers
                     Personnel Transactions Supervisors


     FROM:           Department of Personnel Administration
                Benefits Division

     SUBJECT:   Continuation of Health, Dental and Vision Benefits Upon an Employee's
                Death

     CONTACT:        Ann McWherter, Health Benefits Advisor
                (916) 324-9367, CALNET 454-9367
                FAX: (916) 322-3769
                OFFICE VISION: DPA (ANNMCWHERTER)
                INTERNET: AnnMcwherter@dpa.ca.gov


                As the result of recent collective bargaining agreements with all
                twenty-one bargaining units, legislation has been enacted (AB 1639,
                Chapter 926, 1999) to require departments to continue to pay the
                employer contributions for a covered employee's spouse or other
                eligible family members for up to 120 days following an employee's
                death.  This 120-day period is to provide the family a grace period
                while the California Public Employees' Retirement System (CalPERS)
                determines if the spouse or other family members are eligible for a
                survivor's benefit.  An eligible spouse and/or other eligible
                dependent(s) who is determined to be an eligible survivor and
                receives a continuing allowance from CalPERS may continue health and
                dental coverage as annuitants.  Even though they may be eligible to
                continue health and dental benefits under this circumstance, the
                department should notify the spouse or eligible dependent(s) of the
                right to continue vision benefits under the Consolidated Omnibus
                Budget Reduction Act (COBRA) once CalPERS makes their determination.

                If CalPERS determines that the spouse and/or other eligible family
                member(s) is not eligible for a continuing allowance, then the
                department should notify the spouse and/or other eligible family
                member(s) of COBRA eligibility within sixty days from the date
                CalPERS makes this determination.  Upon notice of COBRA eligibility
                by the department, it is the responsibility of the spouse or other
                eligible family member(s) to pay monthly premiums directly to the
                carrier(s) in the manner prescribed in the COBRA notice.

                In implementing this benefit, departments will use the process used
                for an employee on an unpaid leave of absence.  (See Attachments A
                and B for mailing instructions).  Under this process the employee's
                department will pay for four months of both the employer and employee
                contributions directly to the health, dental and vision carriers and
                bill the spouse or other eligible family member(s) for the employee's
                share of the costs.

                If you have any questions regarding this memo, please contact Ann
                McWherter, Benefits Division at (916) 324-9367 or (CALNET) 454-9367.



                Kathie Vaughn, Chief
                Benefits Division


                Attachment(s)