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

Sep 9, 2025 - Effective July 1, 2027, employee pension contribution rates under the proposed agreement would float to maintain one-half of the normal cost to prefund the benefit. Reduces Number of Shifts of Mandatory Overtime.
https://lao.ca.gov/Publications/Report/5073

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

Jun 27, 2025 - Beginning July 1, 2026, the current MOU allows for employee contributions towards their retirement benefits to increase in the event that California Public Employees ’ Retirement System (CalPERS) determines that the normal cost of the benefit increases by more than 1  percent of pay.
https://lao.ca.gov/Publications/Report/5060

The 2025-26 Budget: Concession Bargaining

May 19, 2025 - Beginning in 2015-16, the state began implementing through the collective bargaining process a statewide change in its retiree health benefit that (1)  required the state and employees each to contribute one-half of the normal cost of retiree health benefits and (2)  reduced the value of the benefit for future hires.
https://lao.ca.gov/Publications/Report/5047

MOU Fiscal Analysis: Bargaining Unit 19 (Health and Social Services/Professional)

Sep 1, 2023 - Specifically, if the actuarially determined blended total normal cost increases or decreases by more than 1 percent of pay, the employee contribution will increase or decrease to one-half of the actuarially determined blended total normal cost, rounded to the nearest quarter of 1 percent of pay.
https://lao.ca.gov/Publications/Report/4797

MOU Fiscal Analysis: Bargaining Unit 16 (Physicians)

Sep 7, 2023 - Specifically, if the actuarially determined blended total normal cost increases or decreases by more than 1 percent of pay, the employee contribution will increase or decrease to one-half of the actuarially determined blended total normal cost, rounded to the nearest quarter of 1 percent of pay.
https://lao.ca.gov/Publications/Report/4801

MOU Fiscal Analysis: Bargaining Unit 6 (Corrections)

Sep 7, 2023 - The normal cost is driven by (1)  the design of the pension benefit (in other words, the terms of the benefit) and (2)  the actuarial assumptions used to calculate normal cost. While different pension systems might use different assumptions —for example, different assumptions related to future investment returns —that affect the
https://lao.ca.gov/Publications/Report/4800

MOU Analysis: Unit 10 (Professional Scientific)

Jan 30, 2023 - When the state begins paying the full normal cost, the state ’s costs would increase by roughly the equivalent of about 3.5  percent of current salaries. This approach is less expensive than giving employees a 3.5  percent salary increase because a $1 increase in salary increases state costs by $1 plus the cost of salary-driven benefits (pension, Social Security, Medicare, and retiree health prefunding under the current structure).
https://lao.ca.gov/Publications/Report/4665

MOU Fiscal Analysis: Bargaining Unit 18

Aug 12, 2022 - The current MOU between the state and Unit 18 expired July 1, 2022. Under the Ralph C. Dills Act, provisions of an expired MOU generally remain in effect until a successor agreement is ratified. The proposed MOU would be in effect from ratification through July 1, 2025.
https://lao.ca.gov/Publications/Report/4617

MOU Fiscal Analysis: Bargaining Unit 9 (Professional Engineers)

Jun 27, 2025 - In 2015-16, the state adopted a policy to establish through the collective bargaining process a prefunding arrangement whereby the state and current employees each pay one-half of the normal cost of the benefit (refer to our 2015 analysis, The 2015-16 Budget: Health Benefits for Retired State Employees for more information).
https://lao.ca.gov/Publications/Report/5061

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

Sep 1, 2023 - Specifically, if the actuarially determined blended total normal cost increases or decreases by more than 1 percent of pay, the employee contribution will increase or decrease to one-half of the actuarially determined blended total normal cost, rounded to the nearest quarter of 1 percent of pay.
https://lao.ca.gov/Publications/Report/4798