CA AB1681

Prohibits public agencies, state agencies, employee organizations, and public employees from entering into memoranda of understanding on or after January 1, 2015 that provide postemployment health care benefits without a strategy for permanently prefunding those benefits.

Requires permanent prefunding of postemployment health care benefits to comply with Article 11 (commencing with Section 22940) of Chapter 1 or Part 5 of Division 5 of Title 2.

Establishes that existing memoranda of understanding remain controlling until expiration, at which point the new prefunding requirement becomes binding and cannot be superseded by subsequent agreements.

Applies the same restrictions to both public agencies and the state employer in separate code sections (3509.7 and 3523.4 respectively).