NEWS

General Salary Increases for Excluded Employees Effective July 1, 2019

The Department of Human Resources (CalHR) has informed ACSS of General Salary Increases (GSI) for state excluded employees effective July 1, 2019. Excluded employees will receive the same percentage raises as the bargaining unit they are associated with as follows:

The budget also provides funds to pay the state’s share of health and dental benefits increases for excluded employees and additional money to prefund retiree healthcare.

Four rank-and-file bargaining units (2, 7, 13 and 18) with contracts expiring on or about July 1, 2019 remain at the table. ACSS has made proposals to CalHR for special salary adjustments for some excluded employees related to those bargaining units. ACSS also proposes that any salary increases negotiated for rank-and-file employees also be provided at the same time to related supervisors and managers.

Most excluded employees will also see an adjustment in the employee deduction for OPEB. The deduction, expected to adjust with your August pay warrant (received at the end of August/beginning of September), shows as CERBT – which stands for the California Employers’ Retiree Benefit Trust. These employer and employee contributions reduce the “unfunded liability” for retiree health care and will help ensure your valuable earned health benefits will be available when you retire.

Exempt and Excluded Employees not directly tied to a bargaining unit (such as many employees who have an “E” Collective Bargaining Identifier) will receive a 3.5% GSI.

The official Pay Letters are expected to be released shortly after the Governor signs the State Budget later this week.

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Update 7/5/19 - CalHR releases Pay Letter 1912 - GSI (Managers and Supervisor classifications begin on page 10.)

ACSS Secures Significant Victory! How ACSS Helped Make Family Care Leave Benefits for Excluded Employees a Reality.

The legislature passed Senate Bill 83 and it is now on Governor Newsom’s desk. SB 83 will provide supervisors, managers and confidential employees the ability to take up to six weeks of paid time off to care for a seriously ill family member or bond with a new child.

ACSS has advocated for paid family leave benefits for years. In the last legislative session, an ACSS sponsored bill (AB 3145) made it to the desk of Governor Brown. Although he vetoed the bill, he noted that the Department of Human Resources (CalHR) was developing a plan to offer paid family benefits to state managers and supervisors. The Newsom Administration has supported the legislative changes required to implement this benefit. ACSS has been working with the Administration diligently to ensure that SB 83 passed through the legislature and that ACSS members receive these important benefits.

The new law, effective July 1, 2019, will expand non-industrial disability insurance (NDI) for excluded employees enrolled in the annual leave program. Under the “Enhanced-NDI” program, supervisors, managers and confidential employees will receive 50 percent of their gross salary for up to six weeks for Family Care Leave. This Enhanced-NDI benefit can be supplemented to 75% or 100% of salary using paid leave credits. This new benefit is unique to excluded employees and is employer paid with no employee contribution required. There is no waiting period for excluded employees switching from vacation/sick leave into the annual leave program.

ACSS President Todd D’Braunstein remarked, “ACSS has long sought paid leave for our members to bond with a new child or care for ill family members.  I am proud that ACSS’ legislative program was able to deliver this benefit to our members.  Achieving this benefit without an employee cost is remarkable.  I thank Governor Newsom for championing paid family leave and the Legislature for swiftly passing this new law which is unique to supervisors and managers.”

If you have any questions about switching from vacation/sick leave to annual leave or questions about the new Family Care Leave benefit, contact your ACSS Labor Relations Representative.

ACSS Met with CalHR to Discuss Issues that Affect Excluded Employees

On April 30, 2019, ACSS met with CalHR Director Eraina Ortega to discuss the new administration’s plan for salary and benefits improvement for the State’s excluded employees. Director Ortega was appointed by Governor Newsom in March. Director Ortega met with ACSS President Todd D’Braunstein, ACSS Executive Director Rocco Paternoster, ACSS Director of Representation Nellie Lynn and ACSS Legislative Advocate Ted Toppin.

ACSS President Todd D’Braunstein comments, “ACSS is pleased to be working with the new Administration and we anticipate a productive relationship moving forward. It was a pleasure talking with Director Ortega and I believe together we can work towards achieving positive results to resolve the issues affecting ACSS Members.” Director Ortega is committed to working with ACSS to ensure excluded employees are part of the process of developing the compensation package for excluded employees. ACSS appreciates the opportunity to work cooperatively with CalHR to ensure future excluded employee salary and benefits improvements address existing salary compaction issues and establish pay differentials for supervisors and managers that attract the best candidates for the State’s management team making the State of California an employer of choice.

ACSS asked Director Ortega about implementation of a Paid Family Leave component to the disability program for excluded employees and conveyed ACSS’ long standing advocacy and support for Paid Family Leave for excluded employees.

May Revision of the 2019 – 2020 State Budget

Governor Newsom released his May Revise of the state budget on May 9, 2019. While forecasting a budget surplus of $21.5 billion for the budget year beginning July 1, the May Revise predicts slower economic growth in the years to come and warns of the possibly detrimental economic impact of even a mild recession.

The Governor’s proposed budget would increase the state’s rainy day fund to $16.5 billion to build resiliency in the event of an unpredicted recession. It also provides for some one-time funding to assist with cost-of living assistance for the middle class, the housing crisis, K-12 schools, and homelessness. The proposal kicks off legislative deliberation over the budget plan with a June 15 deadline for the legislature to send a budget to the governor.

A few highlights of importance to ACSS members:

State Employee Compensation
The January budget proposal included $1.2 billion for increased employee compensation (including proposed salary increases for most supervisors and managers), higher health care costs for active employees, and the state’s contribution to prefund retiree health care costs for active employees. This amount is updated slightly to reflect health benefit enrollments and costs. ACSS will continue to meet with CalHR, advocating for increases in excluded employee salaries for 2019 – 2020.

Pension Contributions
The budget includes $6.8 billion for the state employer’s contribution to CalPERS and a supplemental payment of $3 billion to CalPERS. The supplemental payment is expected to save $7.2 billion in state employer pension costs over 30 years.

Paid Family Leave
The Governor plans to bolster California’s Paid Family Leave program over the next few years and makes budgetary adjustments to plan for the expansion of the program. ACSS’ legislative advocates are busy supporting legislation which would for the first time make Paid Family Leave available to excluded employees, a long-standing goal of ACSS.

Governmental Reorganization
The proposed budget reflects the Administration’s intent to reorganize elements of state government, notably the Division of Juvenile Justice. With a proposed effective date of July 1, 2020, ACSS will work to protect the interests of members moved from CDCR to a new department under the California Health and Human Services Agency.

The Governor’s complete budget summary and draft can be found here:

http://www.ebudget.ca.gov/

OPEB Increases for Some Excluded Employees Effective July 1, 2019

CalHR announced changes to the Other Post-Employment Benefit (OPEB) program for excluded employees not related to a bargaining unit. All state employees have begun prefunding retiree healthcare. The contribution as a percentage of salary is matched with a state employer contribution. The goal is to reduce the “unfunded liability” for retiree healthcare and ensure your valuable earned health benefits will be available when you retire.

For excluded and exempt employees not directly associated with a bargaining unit (e.g. E48, E97, E98 and E99), prefunding of retiree healthcare will change from 0.8% to 1.6% of salary effective July 1, 2019 with a matching employer contribution. Click here for more information about this announcement on CalHR’s web page.

As the state budget progresses, CalHR is expected to make other announcements increasing excluded employee salaries effective July 1, 2019 and increasing the contributions required to prefund retiree healthcare.

Contact your ACSS Labor Relations Representative if you have further questions.

Lobby Day 2019 Was a Huge Success!

On March 6th, 2019, ACSS members marched into the Capitol and met with legislators to discuss important issues affecting managers, supervisors and confidential state employees. Lobby Day was a resounding success with 44 members in attendance. Thanks to the dedicated members who attended, our presence at the Capitol was visible and our voices were clearly heard! For 19 consecutive years, ACSS members have participated in Lobby Day to deliver the ACSS message in person to Assemblymembers and Senators.

This year, we continued to lobby for the resolution of salary compaction. Salary compaction continues to harm California state government operations and ACSS is committed to fixing unaddressed compaction problems by encouraging legislative support for this issue. Also, we asked for support of Assembly Bill 271 (Pay Equity for All State Employees, written by Jim Cooper, AD 09). AB 271 will ensure that California state employees are paid equally and appropriately for performing substantially similar work functions. And lastly, ACSS continues to protect pensions for excluded employees. We are dedicated to the sustainability of CalPERS, but we urged lawmakers to oppose legislative efforts that encourage the state to abandon pension promises or replace defined benefits with alternative savings plans that do not provide retirement security to public servants. Lawmakers listened to our message and acknowledged our concerns.

ACSS thanks the attendees who helped make ACSS Lobby Day 2019 a huge success. Over the years, ACSS has worked hard and progressed to make our presence known, and is now a well-recognized association that lawmakers pay attention to, thanks in part to the efforts of members who attend Lobby Day.

Click here to view all Lobby Day 2019 photos.

New Director Appointed at CalHR

On March 5, 2019, Gavin Newsom appointed Eraina Ortega as the new Director of the California Department of Human Resources (CalHR). Ortega replaces the acting CalHR Director Adria Jenkins-Jones. ACSS has a long history of working closely with CalHR on ensuring that the rights and pay of all excluded employees are fair and protected. We are eager to build a strong relationship with Ortega in ongoing meetings to discuss matters that affect ACSS Members.

Ortega has served as inspector general in the Office of Audits and Investigations at the California Department of Transportation since 2018. She was chief deputy director of policy at the California Department of Finance from 2013 to 2017. Ortega was a senior legislative representative at the California State Association of Counties from 2008 to 2013. She served as legislative advocate and manager at the Judicial Council from 2001 to 2008 and as a policy analyst at the California Legislative Analyst’s Office from 1999 to 2001. Ortega earned a Master of Public Policy degree from the Harvard University, John F. Kennedy School of Government. Click here to read more about Ortega’s biography and qualifications.

Supreme Court Pension Ruling Eliminates Ability to Purchase "Air Time" Service Credit – No Impact on California Rule

The California Supreme Court published a March 4, 2019 opinion in Cal FIRE Local 2881 v. CalPERS. The lawsuit challenged the portion of the Public Employees’ Pension Reform Act of 2013 (PEPRA) which eliminated the ability of state employees to purchase up to five years of additional CalPERS service credit, known as “air time.”

Although the Court’s decision upholds the portion of PEPRA which took away the opportunity to purchase air time service credit, the ruling is narrow in scope. The Court held the ability to purchase air time was not a constitutionally vested pension benefit protected by the contract clause. It is important to note this decision has no impact on those who purchased additional service credit prior to 2013.

Because the Court concluded the opportunity to purchase additional retirement service credit was not protected from impairment by the contract clause, its elimination does not implicate the State Constitution or the “California Rule.” Since 1955, the courts have held under the California Rule that once pension benefits are granted to a public employee, they are vested and cannot be modified for the duration of an employee’s career.

While this decision has no impact on the California Rule, two significant pension cases which may impact the California Rule remain pending before the State Supreme Court. ACSS previously filed a request that these cases be reviewed because of the lower court departure from precedent concerning vested pension rights. We are also working closely with the law firm handling these cases to ensure your vested pension interests and the California Rule are protected.

ACSS’ legislative efforts to preserve and protect members earned and promised pension benefits continue. ACSS is also part of Californians for Retirement Security, a coalition of more than 1.6 million public employees and retirees that seeks to educate the public, lawmakers, and the media regarding public employee pensions.

ACSS will continue to keep you apprised of important pension issues and inform you of actions taken to protect the interests of excluded state employees.

ACSS Board of Directors Elects New Statewide Officers

On January 19, ACSS held its first Board of Directors meeting for 2019 in San Jose. The first order of business was to fill vacancies on the ACSS Board of Directors and the Statewide Officers. Tina Allen was appointed for the position of Chapter 505 Board Member. Tina and Chapter 508 Secretary/Treasurer LaChelle Adams (elected during Delegate Assembly in July 2018) were sworn into office by reciting the Oath.

ACSS President Frank Ruffino and ACSS Executive Vice President Elnora Fretwell resigned from their Statewide Officer positions, which left two out of five vacancies for Statewide Officers. Frank Ruffino accepted a political position with State Treasurer Fiona Ma and Elnora Fretwell recently retired. At the January 19th Board of Directors meeting, VP of Governmental Affairs Todd D’Braunstein became the new ACSS President via no contest. Chapter 503 Board Member Suzanna Nye was elected as Executive Vice President. And Chapter 507 Board Member Reynold Roth was elected as VP of Governmental Affairs.

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2019-20 State Budget: Responsible, with Lots of Bold One-Time Investments