Assembly Bill 119 Summary

• Approves memoranda of understanding between the state and 12 state bargaining units (BUs 1, 3, 4, 6, 9, 11, 14, 15, 17, 18, 20, 21) with provisions requiring expenditure of funds, contingent on legislative appropriation for most units.

• Suspends employee contributions for retiree health care prefunding for fiscal years 2020-21 and 2021-22 for BUs 1, 3, 4, 6, 9, 11, 14, 15, 17, 20, and 21, while employer contributions continue.

• Adjusts pension contribution rates for BU 9 employees to 50% of normal cost rate (rounded to nearest quarter percent) effective July 1, 2019, with return to prior rates on July 1, 2022.

• Establishes new pension contribution adjustment mechanisms for BU 18 employees effective July 1, 2021, with annual increases capped at 1% and triggered by normal cost rate increases exceeding 1%.

• Appropriates $270,917,000 for BU 18 compensation in fiscal year 2020-21 ($131.9 million General Fund, $93.1 million special funds, $45.9 million other nongovernmental funds).