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Get the signed transmittal letter and addendum here (PDF).
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Transmittal Letter
July 3, 2013
The Honorable Mark Leno
Chair, Joint Legislative Budget Committee
Legislative Office Building
1020 N Street, Room 553
Sacramento, CA 95818
Re: Addendum to Bargaining Unit 5, California Association of Highway Patrolmen Memorandum of Understanding - Salary
This is to inform you of a recent agreement reached between the State and Bargaining Unit 5, the California Association of Highway Patrol (CAHP). The attached addendum is effective July 1, 2013.
This addendum clarifies the survey methodology pursuant to existing statute in Government Code 19827. Based on that statutory salary survey, the increase is 5.9 percent (5.9%). The agreement reached with CAHP divides this increase between a 1.9 percent (1.9%) redirection to pre-fund Other Post-Employment Benefits (OPEB) and a General Salary Increase of 4 percent (4%) for CAHP members and cadets. Provisional language, approved by the Legislature in Item 9800 of the Budget Act of 2013, allows the Director of Finance to make adjustments to that item pursuant to existing statute. The Administration will use this authority to provide the necessary funding for this agreement.
CalHR is providing this addendum for the Committee's information according to Government Code §3517.63. If you have any questions or concerns please contact Nancy Farias, Legislative Deputy at (916) 327-2348.
Sincerely,
/s/ Julie Chapman, Director
California Department of Human Resources
attachments
cc: Members, Joint Legislative Budget Committee
Peggy Collins, Principal Consultant
Joint Legislative Budget Committee
David Lanier, Legislative Affairs Deputy
Office of Governor Edmund G. Brown Jr.
Mac Taylor, Legislative Analyst
Office of the Legislative Analyst
ecc:
Marianne O'Malley, Director Gen. Government
Office of the Legislative Analyst
Nick Schroeder, Consultant
Office of the Legislative Analyst
Richard Gillihan, Asst. Program Budget Manager
Department of Finance
Craig Cornett, Chief Fiscal Policy Advisor
Office of the Pro Tem
Charles Wright, Chief Consultant
Office of the Pro Tem
Chris Woods, Budget Director
Office of the Speaker
Greg Campbell, Chief Consultant
Office of the Speaker
Nick Hardeman, Chief Consultant
Office of the Speaker
Seren Taylor, Staff Director
Senate Republican Fiscal Office
Chantele Denny, Consultant
Senate Republican Fiscal Office
Anthony Archie, Consultant
Assembly Republican Fiscal Office
Peter Schaafsma, Staff Director
Assembly Republican Fiscal Office
Keely Bosler, Staff Director
Senate Budget Committee
Mark Ibele, Consultant
Senate Budget Committee
Christian Griffith, Staff Director
Assembly Budget Committee
Mark Martin, Consultant
Assembly Budget Committee
Mark McKenzie, Staff Director
Senate Appropriations Committee
Maureen Ortiz, Consultant
Senate Appropriations Committee
Geoff Long, Chief Consultant
Assembly Appropriations Committee
Roger Dunstan, Consultant
Assembly Appropriations Committee
Pamela Schneider, Consultant
Senate PE&R Committee
Karon Green, Chief Consultant
Assembly PER&SS Committee
Gary Link, Consultant
Senate Republican Caucus
Terry Mast, Consultant
Assembly Republican Caucus
Alene Shimazu, Chief
Fiscal Analysis, CalHR
Pam Manwiller, Deputy Chief
Labor Relations, CalHR
Addendum
Addendum to Bargaining Unit 5, California Association of Highway Patrolmen Memorandum of Understanding - Salary
Where the provisions of this addendum are in conflict with the provisions of the existing collective bargaining agreement or any other addendum to this agreement, this addendum shall be controlling.
GC 19827 Survey Methodology
The parties agree that for the fiscal year 2013-14, employee contributions toward Other Post Employment Benefits (OPEB) will not be considered in salary survey conducted pursuant to Government Code section 19827. Effective July 1, 2014, and ending June 30, 2018, two percent (2%) of the uniformed CHP member contribution toward OPEB will be considered in the total compensation for a CHP Officer only, as defined in the salary survey conducted pursuant to Government Code Section 19827. Beginning July 1, 2018, the total uniformed CHP member contribution toward OPEB will be considered in the total compensation for a CHP Officer. In addition, effective July 1, 2018, any OPEB contributions made by other agencies identified in the salary survey conducted pursuant to Government Code section 19827 shall also be considered.
The parties agree that for the duration of this agreement only, the rate for employee contributions toward retirement, as defined in the Government Code section 19827 salary survey methodology (utilizing an age 24 entry age) for each jurisdiction will be determined using a simple average methodology, meaning each of the rates paid by employees still working as of the date of the survey (based on an entry age of 24) will be considered in the simple average. During the term of this agreement, the parties will explore other methods of accurately measuring pension contribution rates and may, by mutual agreement, adopt changes.
The parties agree that the 2% addition to top step for CHP Officers, which was effective January 1, 2012 as indicated in the existing agreement, will no longer be excluded from the salary survey conducted pursuant to Government Code section 19827.
Other Post Employment Benefits
For the fiscal year 2013-14 only, contributions made by Patrol Members toward the prefunding of OPEB, pursuant to Government Code Section 22944.3, and as identified in Section 42, Subsections a. and b. of the 2010-2013 Bargaining Unit 5 Memorandum of Understanding, shall continue to be redirected as an employee contribution toward retirement, for a total of two percent (2%). This contribution shall be in addition to the nine-and-one-half percent (9.5%) of all salary in excess of $863 per month that will be deducted from Patrol Members' paychecks as an employee contribution toward retirement beginning July 1, 2013 (8% current plus 1.5% new contribution as a result of PEPRA).
Effective July 1, 2013, uniformed CHP members shall contribute 1.9% of salary to permanently prefund post employment health care benefits for uniformed CHP members only through the fund established by CalPERS for uniformed CHP members in the California Employers Retiree Benefit Trust (CERBT). This contribution is based on an amount that would have otherwise been used to permanently increase compensation pursuant to the results of the Government Code section 19827 salary survey for July 1, 2013.
As established in the existing agreement, effective July 1, 2013, the State shall contribute 2% to permanently prefund post employment health care benefits for uniformed CHP members only through the fund established by CalPERS for uniformed CHP members in the CERBT.
Effective July 1, 2015, the State shall contribute an additional 1.9% to permanently prefund post employment health care benefits for uniformed CHP members through the fund established by CalPERS for uniformed CHP members only in the CERBT. This contribution shall be in addition to the contributions already being made (matching the additional employee contributions effective July 1, 2013).
The additional OPEB contributions described in this section will be subject to Government Code section 22944.3 (d) and (e), consistent with existing contributions.
The Personal Leave Program (PLP) shall end June 30, 2013, and employees who have been participating in PLP shall receive the corresponding salary of 4.62% back into their salaries effective July 1, 2013.
Effective July 1, 2013, uniformed CHP members and cadets shall receive a General Salary Increase of 4 percent (4%). The survey conducted pursuant to Government Code section 19827 shall continue to govern salary determinations on July 1 of each year for duration of this agreement.
Rates for Meals and Incidentals:
Breakfast up to $8.00
Lunch up to $12.00
Dinner up to $20.00
Incidentals up to $6.00
Total up to $46.00 for every full 24 hours of travel
Lodging:
Regular State Business Travel: Statewide, in locations not listed otherwise in this agreement, for receipted lodging while on travel states to conduct State business, actual lodging up to $90 plus applicable taxes.
When employees are required to do business and obtain lodging in the counties of Los Angeles, Orange, Ventura & Edwards AFB, less the city of Santa Monica, actual lodging up to $120 plus applicable taxes.
When employees are required to do business and obtain lodging in the counties Sacramento, Napa and Riverside, actual lodging up to $95 plus applicable taxes.
When employees are required to do business and obtain lodging in the counties San Diego, Monterey, Alameda, San Mateo and Santa Clara, actual lodging up to $125 plus applicable taxes.
When employees are required to do business and obtain lodging in the county of San Francisco and the City of Santa Monica, actual lodging up to $150 plus applicable taxes.
The State and CAHP shall work to determine the savings realized by the State as a result of the Public Employees Pension Reform Act (PEPRA), enacted January 1, 2013.
6/19/13
State of California
/s/ Pam Manwiller, CalHR
/s/Chris Main, CHP
California Association of Highway Patrolmen
/s/ Jon Hamm
California Department of Human Resources
Bargaining Unit 05 + Related Excluded
California Association of Highway Patrolmen (CAHP)
Addendum Summary
Budgetary Costs (Savings)
($ in Thousands)
Rank and File
| Bargaining Unit | Costing Proposal | Eff Date | Cost/Savings | 2013-14 GF | 2013-14 OF | 2013-14 Total |
|---|
| R05 | FY 13-14 Salary Survey GSI (4.0%) | 7/1/2013 | Cost | $ | $34,726 | $34,726 |
| R05 | OPEB Contribution of 1.9% for FY 13-14 | 7/1/2013 | Cost | $ | $9,690 | $9,690 |
| R05 | Pension Redirected back to OPEB (2%) - (org code 2720) | 7/1/2013 | Cost | $ | $10,200 | $10,200 |
| R05 | OPEB redirected from pension (2%) - (org code 9651) | 7/1/2013 | Savings | $ | ($10, 200) | ($10, 200) |
| R05 | Total Cost/(Savings) | | | $ | $44, 415 | $44, 415 |
Rank and File
| Non-Adds | | | | GF | OF | Total |
|---|
| R05 | OPEB Sec. 22944.3 (c) (State Match of OPEB 22944.3 (a) and (b)) | 7/1/2013 | Cost | $ | $10,100 | $10,100 |
| R05 | Travel | 7/1/2013 | Cost | $ | $103 | $103 |
| R05 | HDV | 1/1/2014 | Cost | $ | $3,171 | $3,171 |
| R05 | Total Cost/(Savings) | | | | $13,374 | $13,374 |
OPEB contributions from employees will reduce the State retiree health cost over the long term, but they are not likely to reduce the State OPEB costs over the short
term.
California Department of Human Resources
Bargaining Unit 05 + Related Excluded
California Association of Highway Patrolmen (CAHP)
Addendum Summary
Budgetary Costs (Savings)
($ in Thousands)
Rank and File
Related Excludeds
| Bargaining Unit | Costing Proposal | Eff Date | Cost/Savings | 2013-14 GF | 2013-14 OF | 2013-14 Total |
|---|
| M05 | FY 13-14 Salary Survey GSI (4.0%) | 7/1/2013 | Cost | $ | $3,174 | $3,174 |
| M05 | Pension Redirected back to OPEB (2%) - (org code 2720) | 7/1/2013 | Cost | $ | $954 | $954 |
| M05 | OPEB redirected from Pension (2%) - (org code 9651) | 7/1/2013 | Savings | $ | ($954) | ($954) |
| E99 | FY 13-14 Salary Survey GSI (4.0%) | 7/1/2013 | Cost | $ | $13 | $13 |
| S05 | FY 13-14 Salary Survey GSI (4.0%) | 7/1/2013 | Cost | $ | $5,705 | $5,705 |
| S05 | Pension Redirected back to OPEB (2%) - (org code 2720) | 7/1/2013 | Cost | $ | $1,528 | $1,528 |
| S05 | OPEB redirected from Pension (2%) - (org code 9651) | 7/1/2013 | Savings | $ | ($1,528) | ($1,528) |
| Related Excludeds | Total Cost/(Savings) | | | $ | $8,891 | $8,891 |
Related Excludeds
| Non-Adds | | | | GF | OF | Total |
|---|
| OPEB Sec. 22944.3 (c) (State Match of OPEB 22944.3 (a) and (b)) | 7/1/2013 | Cost | $ | $915 | $915 |
| Travel | 7/1/2013 | Cost | $ | $5 | $5 |
| OPEB Sec. 22944.3 (c) (State Match of OPEB 22944.3 (a) and (b)) | 7/1/2013 | Cost | $ | $1,499 | $1,499 |
| Travel | 7/1/2013 | Cost | $ | $13 | $13 |
| Total Cost/(Savings) | | | | $2,433 | $2,433 |
OPEB contributions from employees will reduce the State retiree health cost over the long term, but they are not likely to reduce the State OPES costs over the short
term.
California Department of Human Resources
Bargaining Unit 05 + Related Excluded
California Association of Highway Patrolmen (CAHP)
Addendum Summary
Budgetary Costs/(Savings)
($ in Thousands)
Data Sources: Position Benefits Table (March 2013) and SCO Table 183 (April 2013)
Salary survey GSIs are provided each fiscal year from FY13-14 through FY18-l9. GSIs costs included for Cadets and all related excluded including CHP Commissioner.
FY13-14 items already in the Governor's Budget FY13-14 have been added to this costing summary as Non-Adds.
The 2% retirement redirect back to OPEBs will continue to be in retirement until FY14-15, at which point it will be redirected back to OPEBs.
Employees will contribute 1.9% of their FY13-14 Salary Survey GSI towards OPEBs.
The State will match the 1.9% OPES contributions in FYl5-16.
Health, Dental, and Vision (HDV) have been updated to display costs through FY18-19. (up to 2018 estimated rates)
Travel costs will be absorbed by the department.
OPEB Sec. 22944.3 (c) (State Match of OPEB Sec. 22944.3 (a) and (b)) is matched to the value in the May Revision for FY13-14, per DOF's request. Any differences
for FY13-14, as well as the values for the fiscal years that follow FY13-14, have been included in the adds section.
The Administration has decided to extend the 4% GSI to the related excludeds.
