January 10, 2017 - We reviewed the proposed memoranda of understanding (MOUs) between the state and 13 bargaining units (Bargaining Units 1, 3, 4, 11 through 15, and 17 through 21). These employees are represented by Service Employees International Union (SEIU) Local 1000, the International Union of Operating Engineers (IUOE) Locals 3, 39, and 501 (both Craft and Maintenance workers and Stationary Engineers), the California Association of Psychiatric Technicians (CAPT), and the American Federation of State, County, and Municipal Employees (AFSCME, Local 2620). This review is pursuant to Section 19829.5 of the Government Code.
(Corrected 1/19/17: Changed parenthetical about retiree health benefits for SEIU Local 1000.)
(Corrected 1/17/17: Changed Figure 3 to reflect 2015-16 normal costs and pay. Added text to refer to figure.)
(Updated 1/13/17: Added paranthetical about retiree health benefits for SEIU Local 1000.)
(Corrected 1/11/17: Removed reference to PEPRA employees being required to pay one-half of normal cost under PEPRA.)
January 23, 2017 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 8 (Firefighters). State Bargaining Unit 8’s current members are represented by Cal Fire Local 2881. This review is pursuant to Section 19829.5 of the Government Code.
March 14, 2017 - We reviewed the proposed memorandum of understanding (MOU) between the state and Bargaining Unit 16. This bargaining unit is represented by the Union of American Physicians and Dentists (UAPD) and consists of state employed physicians, dentists, and podiatrists. This analysis fulfills our requirement under Section 19829.5 of the Government Code.
February 17, 2006 - The costs of providing health care to retired state employees and their dependents—now approaching $1 billion per year—are increasing significantly. Many other public employers (including the University of California, school districts, cities, and counties) face similar pressures. This report discusses health benefits provided to retired public employees, focusing on state retirees. We find that the current method of funding these benefits defers payment of these costs to future generations. Retiree health liabilities soon will be quantified under new accounting standards, but state government liabilities are likely in the range of $40 billion to $70 billion-and perhaps more. This report describes actions that the Legislature could take to address these costs.
June 10, 2016 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 12 (Craft and Maintenance). Bargaining Unit 12 is represented by the International Union of Operating Engineers (IUOE) Locals 3, 39, and 501. This review is pursuant to Section 19829.5 of the Government Code.
September 7, 2023 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 6 (Corrections). This review is pursuant to Section 19829.5 of the Government Code.
March 16, 2015 - Health benefits for retired state employees constitute a large and growing cost for the State of California. The state’s retiree health benefit program constitutes the state’s last major liability that needs a funding plan. As part of his 2015-16 budget, the Governor proposes one approach to address retiree health liabilities through the collective bargaining process. In our report, we recommend that the policy committees of the Legislature hold hearings to discuss the Governor’s proposal—as well as other options to address retiree health liabilities—with actuaries, employee groups, policy experts, and the public. We acknowledge that a delay in implementing a funding plan might make some elements of a funding plan more expensive; however, we think it is more important to get the plan right that to quickly set up a plan that can be implemented in 2015-16.
August 29, 2016 - We reviewed the proposed memorandum of understanding (MOU) for Bargaining Unit 2 (Attorneys and Hearing Officers). State Bargaining Unit 2’s current members are represented by the California Attorneys, Administrative Law Judges, and Hearing Officers in State Employment (CASE). This review is pursuant to Section 19829.5 of the Government Code.
November 8, 2011 - The Governor’s 12-point pension and retiree health plan would result in bold changes for California’s public employee retirement programs. His proposals would shift more of the financial risk for pensions—now borne largely by public employers—to employees and retirees and would, in so doing, substantially ameliorate a key area of long-term financial risk for California governments. Despite the proposal’s strengths, it leaves many questions unanswered, such as how his hybrid plan and retirement age proposals would work and how the state should cope with large unfunded liabilities already affecting the California State Teachers’ Retirement System, the University of California Retirement Plan, and the health benefit program for state and California State University retirees. The Governor’s proposal to increase many current public employees’ pension contributions also raises significant legal and practical issues.