This PML is superseded by the HR Manual and is no longer active.
PML Number
2016-027
Title
Other Post-Employment Benefits (OPEB) Prefunding Implementation–Bargaining Unit 6
Date Issued
October 6, 2016
Owner
Benefits Division
Contact
Angela Acker
Health Policy Analyst
(916) 322-9795
angela.acker@calhr.ca.gov
Signed By
Pam Manwiller, Deputy Director, Labor Relations
Content
Pursuant to the Bargaining Unit (BU) 6 Memorandum of Understanding, Other Post-Employment Benefits (OPEB) prefunding for BU 6–Correctional Employees will be implemented effective September 1, 2016.  The purpose is to prefund retiree health benefits, with the goal of reaching 50 percent cost sharing of actuarially determined total normal costs for both employer and employees by July 1, 2018.  The amount of employee and matching employer contributions will equal the following percentages of total pensionable compensation for each pay period beginning:
•	September 1, 2016: 1.3 percent (first contribution to be taken from the October 2016 Pay Warrant)
•	July 1, 2017: increased by 1.3 percent, for a total of 2.6 percent
•	July 1, 2018: increased by 1.4 percent, for a total of 4.0 percent
Pensionable compensation is any pay that is subject to retirement contribution.  Employees designated R06, S06, M06, and in other positions related to BU 6 are subject to OPEB if they are eligible for health benefits.  The other positions related to BU 6 are:
Excluded Positions
Class Code	Class Title	
9704	Associate Deputy Inspector General	
9705	Deputy Inspector General	
9706	Deputy Inspector General, Senior	
9764	Special Agent-In-Charge, Department of Corrections	
9766	Special Agent, Department of Corrections	
9767	Senior Special Agent, Department of Corrections	
Exempt Positions
Class Code	Class Title	
0318	Secretary, Department of Corrections and Rehabilitation	
0320	Undersecretary, Operations	
0321	Chief, Office of Correctional Safety	
0322	Director, Division of Adult Institutions	
0533	Director, Division of Adult Parole Operations	
5033	Associate Director, High Security (Males)	
5507	Deputy Director, Facility Support, Division of Adult Institutions	
6281	Director, Division of Internal Oversight and Research	
6298	Associate Director, Female Offender Program and Services	
6581	Director, Division of Juvenile Justice	
7642	Associate Director, Reception Center Institutions	
9077	Associate Director, General Population–Males, Division of Adult Institutions	
9081	Deputy Director, Operations and Programs, Division of Juvenile Justice	
9380	Assistant Secretary, Internal Affairs	
9593	Superintendent	
9625	Warden/Department of Corrections	
9649	Chief, Contract Beds Unit	
9657	Deputy Director, Facility Operations	
CEA Positions
Class Title	
Assistant Deputy Director, Facility Support, Division of Adult Institutions	
Deputy Director, Division of Adult Parole Operations	
Regional Parole Administrator, Northern Region, Division of Adult Parole Operations	
Regional Parole Administrator, Northern Region, Division of Adult Parole Operations	
Regional Parole Administrator, Southern Region, Division of Adult Parole Operations	
Regional Parole Administrator, Southern Region, Division of Adult Parole Operations	
Deputy Chief, Correctional Safety, Office of Correctional Safety	
Chief, Field Operations, Division of Internal Oversight and Research	
Chief, Headquarters Operations, Division of Internal Oversight and Research	
In addition, Permanent Intermittent employees who contribute toward retirement are subject to OPEB.  Employees who are not eligible for health benefits due to their tenure or time base, e.g., temporary, seasonal, or part-time less than half-time, are not subject to OPEB.  This ineligible group includes employees whose appointments are to the following positions: 
•	Retired Annuitant
•	Temporary Intermittent 
•	Tenure of six months or less
A State Controller's Office (SCO) Payroll Letter with additional processing information will be forthcoming.
If you have any questions regarding this information, please contact Angela Acker at (916) 322-9795 or angela.acker@calhr.ca.gov.