CA SB873

Approves memoranda of understanding between the state employer and State Bargaining Units 9 (Professional Engineers, effective August 21, 2018) and 10 (Professional Scientific, effective August 22, 2018) that require expenditure of funds.

Adjusts normal pension contribution rates for Unit 9 and 10 members to 50% of normal cost rate (rounded to nearest quarter percent) effective July 1, 2019, with rates reverting July 1, 2020 for Unit 9 and July 1, 2021 for Unit 10.

Modifies retiree health care prefunding requirements for Unit 10 employees effective July 1, 2020 to maintain 50% cost sharing of actuarially determined normal costs, with employee and employer contribution percentages set at 2.8% of pensionable compensation effective July 1, 2021.

Increases minimum state service requirement for employer-paid dental benefits from 10 to 15 years for employees hired on or after January 1, 2019 in Units 9 and 10, with graduated employer contribution percentages based on years of service (50% at 15 years, increasing to 100% at 25+ years).

Appropriates $132,786,000 for fiscal year 2018-19 for State Bargaining Units 9 and 10 employee compensation ($6.222 million General Fund, $84.798 million special funds, $41.766 million nongovernmental cost funds).