Employees’ Rights

AB 455 (Campos) - Request for Comment
As introduced on February 15, 2011

AB 455, by Assembly Member Nora Campos, would provide that when a local public agency has established a personnel commission or merit commission to administer personnel rules or a merit system, the public agency employer and the employee organization recognized as the exclusive or majority bargaining agent would each be required to designate half of the members of the commission. 

Workers’ Compensation

AB 369 (Huffman) – Pending
As Introduced February 15, 2011

AB 369, by Assembly Member Jared Huffman, would authorize the duration of any step therapy or fail first protocol to be determined by the prescribing physician; the bill also prohibits a health care service plan or insurer from requiring a patient to try and fail on more than two pain medications before allowing the patient access to other pain medications prescribed by physician.

AB 369 is currently awaiting assignment to a policy committee.

Workers’ Compensation

AB 211 (Cedillo) – Watch
As introduced on January 31, 2011

AB 211, by Assembly Member Gil Cedillo would, for injuries causing permanent partial disability and occurring on or after January 1, 2012, provide for a supplemental job displacement benefit voucher for up to $6,000 to cover re-education and skill enhancement expenses. The vouchers would expire two years after being furnished or five years after the date of injury, whichever is later. 

California Tax Law Implications Arise From New Adult Child Health Coverage Law

In March 2010, President Obama signed into law the Patient Protection and Affordable Care Act, which includes a provision that, effective September 23, 2010, dependent children are permitted to remain on their parents’ insurance plans until their 26th birthday.

CalPERS Reports 2010 Investments Gains

The California Public Employees’ Retirement System (CalPERS) today reported a 12.5 percent net return on investments for 2010. This is the second year in a row of double-digit returns and CalPERS credits the gain to reducing portfolio leverage and taking full advantage of the overall gains in the market last year.

Organization Puts New Pension Reform Proposals Forward

The California Foundation for Fiscal Responsibility (CFFR) recently released two new pension reform proposals that amend the state constitution. The proposals have not yet been submitted to the office of the Secretary of State, the first step in putting a measure on the state ballot.

Citing the need for fiscally responsible solutions to what the organization terms a broken pension system, both alternatives do the following:

California Congressman Introduces Public Pension Transparency Bill

Representative Devin Nunes (R-CA) last Thursday introduced H.R. 6484, the “Public Employee Pension Transparency Act.” The legislation finds that nationwide, state and local pension benefit plans have a total unfunded liability of about $3.23 trillion, but that current government accounting rules obscure the actual underfunded amount.

2010 Annual Meeting Recap

Government Finance and Operations Policy Committee

Summary of Employee Relations Policy Presentation

Department of Industrial Relations Suspends Labor Compliance Program Regulations

Last week, the California Department of Industrial Relations (DIR) proposed taking emergency action to suspend the effects of the new SB 2X 9 regulations relating to labor compliance programs (LCP). 

Budget Trailer Bill Includes New Reporting Requirements for CalPERS 

SB 867, authored by Senator Dennis Hollingsworth and part of the 2010-11 state budget trailer bill package, reflects state efforts to increase the transparency and oversight of public pension systems. The measure requires the California Public Employees’ Retirement System (CalPERS) Board of Administration (Board), whenever it adopts new contribution rates, including those rates for counties contracting with CalPERS, to provide an actuarial report to the Legislature, Governor and Treasurer.

Members of the Senate and Assembly have introduced several bills as a part of a legislative package addressing the public employee compensation controversy stemming from the City of Bell. The following is a summary of the bills as we expect them to be amended. The summaries could change once the final language is made available.

AB 192 (Gatto) – Pending 
Amendments Pending

CalPERS to Include Analysis on Risks to Contribution Rates in Annual Employer Valuations

The California Public Employees’ Retirement System (CalPERS) will soon begin showing public employers how much their retirement costs will rise if investment earnings fall short.

PRESIDENT OBAMA SIGNS UNEMPLOYMENT BENEFIT EXTENSION

President Barack Obama signed legislation yesterday to extend unemployment benefits after the bill was caught in a stalemate since May.  The President’s signature will provide retroactive unemployment benefits to those whose aid expired on June 2, and extend through November the program that offers up to 99 weeks of unemployment assistance.