SB 857 Summary

• Approves memorandum of understanding between state and California Statewide Law Enforcement Association (State Bargaining Unit 7) effective July 2, 2016 to July 1, 2019, and appropriates $38,611,000 for employee compensation in 2016-17 fiscal year.

• Limits employer contributions for retirees hired on or after January 1, 2017 in Bargaining Unit 7 to 80% of weighted average health benefit plan premiums, with employer contribution percentages increasing from 50% at 15 years of service to 100% at 25+ years of service.

• Requires Bargaining Unit 7 employees hired on or after January 1, 2017 to have at least 15 years of state service to receive any employer contribution for postretirement health benefits and dental benefits.

• Establishes employee and employer contributions to prefund retiree health care for Bargaining Unit 7 with goal of reaching 50% cost-sharing of normal costs by July 1, 2019, with contributions deposited in Annuitants' Health Care Coverage Fund.

• Exempts Bargaining Unit 7 employees hired on or after January 1, 2017 from Medicare Part B premium payments that would normally be available to other state employees.