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Labor and Workforce (12)
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The 2025-26 Budget: Concession Bargaining

May 19, 2025 - In 2013, under the Public Employees’ Pension Reform Act (PEPRA), the state established a standard that state employees would contribute one-half of the normal cost of pension benefits and adopted a new (lower) pension benefit for new state employees.
https://lao.ca.gov/Publications/Report/5047

MOU Fiscal Analysis: Bargaining Units 10 (Professional Scientists) and 18 (Psychiatric Technician)

Sep 9, 2025 - Freezes Employee Pension Contributions Through 2026-27. The Public Employees ’ Pension Reform Act of 2013 established a standard that state employees contribute one-half of the normal cost to prefund pension benefits.
https://lao.ca.gov/Publications/Report/5073

MOU Fiscal Analysis: Bargaining Unit 8 (Firefighters)

Aug 19, 2025 - CAAP noted that any adverse financial effects of a DROP affect a pension system in the form of an actuarial loss that results in growth in unfunded liabilities. The state is responsible to pay for any unfunded liabilities associated with the pension benefits it provides state employees.
https://lao.ca.gov/Publications/Report/5066

MOU Fiscal Analysis: Bargaining Unit 12 (Craft and Maintenance)

Jun 27, 2025 - For example, the state pays a percentage of employees ’ pay to fund pension benefits. During a furlough, the state ’s contributions towards pension benefits is made as a percentage of the reduced salary.
https://lao.ca.gov/Publications/Report/5060

MOU Fiscal Analysis: Bargaining Unit 16 (Physicians, Dentists, and Podiatrists)

Jul 14, 2025 - For example, the state pays a percentage of employees ’ pay to fund pension benefits. During a furlough, the state ’s contributions towards pension benefits is made as a percentage of the reduced salary.
https://lao.ca.gov/Publications/Report/5064

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Jun 23, 2025 - For example, the state pays a percentag e of employees ’ pay to fund pension benefits. During a furlough, the state ’s contributions towards pension benefits is made as a percentage of the reduced salary.
https://lao.ca.gov/Publications/Report/5058

MOU Fiscal Analysis: Bargaining Unit 9 (Professional Engineers)

Jun 27, 2025 - Typically, a furlough for state employees reduces state employee pay by 4.62  percent in exchange for one day (eight hours) off per month without affecting other elements of compensation (for example, pension and health benefits).
https://lao.ca.gov/Publications/Report/5061

Labor Agreements to Achieve Budgetary Savings

Jul 11, 2025 - Our analyses of the current memoranda of understanding (MOUs) between the state and these bargaining units and other labor agreements proposed in the past are available on our State Workforces webpages .
https://lao.ca.gov/Publications/Report/5063

Refocusing the Workers’ Compensation Subsequent Injury Program

Jul 10, 2025 - Influx of SIBTF Claims Based on Chronic Conditions Straining State Capacity for Review Incoming Claims Have Increased Much Faster Than State ’s Processing Capacity. As  discussed earlier, the state routinely received 700 to 1,000  cases annually until 2015.
https://lao.ca.gov/Publications/Report/5062

MOU Fiscal Analysis: Bargaining Unit 16 (Physicians, Dentists, and Podiatrists) [Publication Details]

Jul 14, 2025 - The current MOU between the state and UAPD expired on July 1, 2025. If the proposed successor MOU is not ratified, the provisions of the expired MOU generally would remain in effect as is required by the Ralph C.
https://lao.ca.gov/Publications/Detail/5064