4. Coverage During First 24 Months <strong>of</strong> Employment -Employees appointed into <strong>State</strong> service on or after January 1, 1993, andwho meet the above eligibility criteria, will not be eligible for enrollment in the<strong>State</strong> sponsored fee-for-service plan until they have completed 24consecutive months <strong>of</strong> employment <strong>with</strong>out a permanent break in service.However, if no alternative plan or prepaid plan is available <strong>with</strong>in a 50-mileradius <strong>of</strong> the employee’s residence, the employee will be allowed to enroll inthe fee-for-service plan.5. Delta Dental SurplusThe <strong>State</strong> agrees that $95,000 <strong>of</strong> the money remaining in the Delta DentalSurplus Account shall be applied to the employees’ share <strong>of</strong> any rateincreases incurred in the dental indemnity program during the plan yearending December 31, 1999. If no rate increase occurs, then said amountshall be applied to the employees’ share <strong>of</strong> any dental benefit rate increaseoccurring the plan year ending December 31, 2000. The Union agrees thatthis is a full and final settlement and release <strong>of</strong> all known and all unknowndisputes, claims, injuries, debts, or damages relating to Delta Dentalpremiums deducted under the terms <strong>of</strong> the 1992-1995 collective bargainingagreement.6. Dental VestingThe Union agrees to support legislation to add to Government Code Section 22955:a. 22955. Not<strong>with</strong>standing the provisions <strong>of</strong> Sections 22953 and 22954,employees who become state members <strong>of</strong> the Public Employees’ RetirementSystem after January 1, 2000 and who are included in the definition <strong>of</strong> stateemployee in subdivision (c) <strong>of</strong> Section 3513 shall not receive any portion <strong>of</strong>the employer’s contribution payable for annuitants, pursuant to Section22953 and 22954, unless these employees are credited <strong>with</strong> 10 years <strong>of</strong>state service as defined by this section, at the time <strong>of</strong> retirement.b. Not<strong>with</strong>standing Sections 22953 and 22954, a state employee whobecame a state member <strong>of</strong> the Public Employees’ Retirement System afterJanuary 1, 2000, and is either (1) excluded from the definition <strong>of</strong> stateemployee in subdivision (c) <strong>of</strong> Section 3513; or (2) a nonelected <strong>of</strong>ficer oremployee <strong>of</strong> the executive branch <strong>of</strong> government who is not a member <strong>of</strong> thecivil service, or shall not receive any portion <strong>of</strong> the employer’s contributionpayable for annuitants, pursuant to Section 22953 and 22954, unless theemployee is credited <strong>with</strong> 10 years <strong>of</strong> state service as defined by this section,at the time <strong>of</strong> retirement.c. The percentage <strong>of</strong> employer’s contribution amount payable for postretirement dental care benefits for an employee subject to this section shallbe based on the funding provisions <strong>of</strong> the plan and the member’s completedyears <strong>of</strong> state service at retirement as shown in the following table:26BU <strong>12</strong>(99-01)
CREDITED YEARSSERVICEPERCENTAGE OF EMPLOYERCONTRIBUTION10 5011 55<strong>12</strong> 6013 6514 7015 7516 8017 8518 9019 9520 100d. This section shall only apply to state employees who retire for service.e. Benefits provided to an employee subject to this section shall beapplicable to all future state service.f. For purposes <strong>of</strong> this section “state service” shall mean service rendered asan employee or an appointed or elected <strong>of</strong>ficer <strong>of</strong> the state for compensation.In those cases where the state assumes or has assumed from a publicagency a function and the related personnel, service rendered by thepersonnel for compensation as employees or appointed or elected <strong>of</strong>ficers <strong>of</strong>that local public agency shall not be credited, at retirement, as state servicefor the purposes <strong>of</strong> this section, unless the former employer has paid oragreed to pay the state agency the amount actuarially determined to equalthe cost for any employee health benefits which were vested at the time thatthe function and the related personnel were assumed by the state. Fornoncontracting local public agencies the state department shall certify thecompleted years <strong>of</strong> local agency service to be credited to the employee tothe Public Employees’ Retirement System at the time <strong>of</strong> separation forretirement.g. Whenever the state contracts to assume a local public agency function,completed years <strong>of</strong> service rendered by the personnel for compensation asemployees or appointed or elected <strong>of</strong>ficers <strong>of</strong> the local public agency shall becredited as state service only upon a finding by the Department <strong>of</strong> Financethat the contract contains a benefit factor sufficient to reimburse the state forthe amount necessary to fully compensate the state for post retirementhealth benefit costs for those personnel.h. This section shall not apply to employees <strong>of</strong> the <strong>California</strong> <strong>State</strong> Universityor the Legislature.27BU <strong>12</strong>(99-01)