Additional Updates for Salary and Pay Adjustments for Excluded Employees

BU02 Retirement Contribution

On September 30, 2016, CalHR released PML-025 in regards to Retirement Contribution Increases for Excluded Employees Affiliated with Bargaining Unit 2.

Pay increases and adjustments - BU07

On October 5, 2016, Cal HR released Pay Letter 16-18 regarding pay increases for excluded employees associated with Bargaining Unit 7 (Protective Services and Public Safety):

Prefunding Implementation M06 and S06

On October 6, 2016, CalHR released PML-027 in regards to Other Post Employment Benefits (OPEB) Prefunding Implementation.

ACSS will continue to follow up and advocate for additional special salary adjustments on behalf of excluded employees related to all other bargaining units across the state.

BREAKING NEWS: Excluded Employees Receive Sweeping Salary Increases

BREAKING NEWS: Excluded Employees Receive Sweeping Salary Increases

As a result of ACSS’ relentless advocacy efforts, we are announcing a huge victory for state excluded employees. Multiple-year general salary increases for all excluded state employees have been granted and guaranteed by CalHR. ACSS has worked tirelessly in numerous productive meetings with CalHR to reach this milestone and is proud to finally bring this announcement to you.

On September 19th, 2016, CalHR released a PML memo officially informing that the following managerial, supervisory, and other excluded employee designations will receive a 3% General Salary Increase (GSI) effective on October 1, 2016:

• Exempt or Managerial – M/E59/E79/E99
• Supervisory – S/E48/E58/E78/E98
• Confidential and otherwise excluded from bargaining – C/E67/E77/E97

In addition to the GSI, these designations will also begin equally sharing the cost of prefunding retiree healthcare benefits, also known as Other Post-Employment Benefits (OPEB). OPEB prefunding will begin on July 1, 2017 and will be phased in over a 3 year period. In addition, these designations will also receive an additional GSI on July 1, 2017, as requested by ACSS, to assist with offsetting the OPEB prefunding deductions. GSIs after 2017 will be revealed at a later date.

Excluded employees tied to the following Bargaining Units are NOT covered in this PML memo (because CalHR has already given them a separate pay letter on a previous date):

• Bargaining Unit 2* (Attorneys and Administrative Law Judges)
• Bargaining Unit 5 (Highway Patrol)
• Bargaining Unit 6 (Corrections)
• Bargaining Unit 7* (Protective Services and Public Safety)
• Bargaining Unit 9 (Professional Engineers)
• Bargaining Unit 10 (Professional Scientific)

*NOTE: Bargaining Unit 2 and Bargaining Unit 7 Pay Letters have not been release yet and are coming soon.

“This is a positive first step. Rest assured that ACSS is fighting to make sure excluded employees receive pay and benefit improvements that are equitable,” ACSS President Frank Ruffino commented. ACSS is advocating on your behalf for CalHR to provide salary increases for ALL of the excluded employees not addressed in this announcement. We will continue to work with CalHR to resolve the remaining issues regarding salary compaction and pay equity for excluded employees.

  >> Click here to read the full text of PML-2016-023.

Update: October 13, 2016

Pay Letter 16-20 -- CalHR Releases a Summary of revisions and updates to pay scales in regards to General Salary Increases. Specific classes are listed in detail in this Pay Letter.

Prefunding Retirement Benefit Contributions – Implementation for S06, M06 and other Excluded Employees

On August 26, 2016, ACSS met with CalHR to discuss Other Post Employment Benefit (OPEB) Prefunding for supervisors and managers tied to Bargaining Unit 6 (Peace Officers).

Below are the important issues that were discussed at the meeting:

• Excluded Employee General Salary Increases
• Other Post Employment Benefit (OPEB) Prefunding Implementation
• Processing Prefunding Deductions
• Delaying Prefunding
• Retirement Health Benefits and Vesting for New Employees

  >> Click here to read the full text of the article.

“California Rule” Continues to Protect Pensions Despite Marin County Court Ruling

ACSS strives to provide members with news that matters to excluded state employees. We are on your side and fight to protect your pension and retirement benefits. The “California Rule”, created in 1955, prohibits any changes in pension benefits to state workers once they are granted. However, on August 17, 2016, a state appellate court in San Francisco concluded that the California Rule can be modified. In the case of Marin Association of Public Employees vs Marin County Employees Retirement Association, the issue of “pension spiking” (the practice of using tactical means to inflate income and benefits) opened the door to debate the validity of the long-standing California Rule.

In this case, three appellate justices determined that state employee pensions are “not an immutable entitlement.” And added that “the Legislature may, prior to the employee’s retirement, alter the formula, thereby reducing the anticipated pension…so long as the…modifications do not deprive the employee of reasonable pension.”

Pension reformers may see this ruling as a reason to continue to propose new pension reform measures.

ACSS fights to protect your pension. In fighting this battle, we joined the Californians for Retirement Security Coalition (CRS) which aims to protect pensions and retirement benefits of public employees. Steven Maviglio, spokesperson for CRS, reassures ACSS that the California Rule is not going anywhere anytime soon. Maviglio reiterates that “The California Supreme Court has repeatedly affirmed the “California Rule”, protecting pensions and maintaining that they are a vested right”. He goes on to mention that the case of Marin County is based on an unreasonable, narrow set of facts and may be appealed to the Supreme Court. Ultimately, Maviglio says “There is no reasonable conclusion that this decision opens the door to overturning the California Rule. Any significant changes would require legislative action, which will not occur this year.”

ACSS will continue to closely monitor this issue and provide you with updates.

ACSS Quarterly Meeting with CCHCS

ACSS met with the California Correctional Health Care Services (CCHCS) in Sacramento on August 12, 2016, to discuss a variety of issues affecting ACSS members:

• Adding Safety Retirement Pay for certain classifications
• Office Support Supervisor I upgrades
• Seniority Watch Preference Policy for Supervising Registered Nurses II
• Food Administrator salary compaction issues

We would like to thank the CCHCS members that provided input to ACSS prior to the meeting. Their input and feedback was important and valuable in order for ACSS to address their specific concerns. In these types of meetings, ACSS represents the voice of members and protects careers on behalf of its members.

Here is a summary of the results of this meeting…

Follow Up on CDCR Meet And Confer Regarding Directed Reports

ACSS met with the California Department of Corrections and Rehabilitation (CDCR) in Sacramento on August 11, 2016, to discuss impact on members regarding the implementation of the Office of Internal Affairs (OIA) order of Directed Reports process. Per CDCR “a Directed Report is a written response to a written or verbal order issued by the OIA in which staff are directed to document an incident or action that is the subject of an OIA inquiry or administrative investigation.”

We would like to thank the CDCR members that provided input to ACSS prior to the meeting. Their input and feedback was important and valuable in order for ACSS to address their specific concerns. In these types of Meet and Confer meetings, ACSS represents the voice of members and protects careers on behalf of its members.

Here is a summary of the results of this meeting…

CSEA Foundation Awards Scholarship to an ACSS Recipient

The CSEA (California State Employees Association) Foundation awarded five $1,500 scholarships to outstanding students that are either dependents, spouses or grandchildren of CSEA Affiliates (ACSS, CSR, CSUEU, SEIU Local 1000 and UAW).  One of the $1,500 scholarship recipients was sponsored by an ACSS member from Chapter 503 in the Sacramento area.  ACSS would like to congratulate Evan Lovell who attends Elk Grove High School in Elk Grove, sponsored by ACSS Chapter 503 member Howell Lovell III. The CSEA Foundation Board and ACSS extends its sincere congratulations and continuing academic success to all recipients and those who submitted applications.

Click here to read the press release from the CSEA Foundation.

CalPERS Events: Benefits Education in Newport Beach, Retirement Webinar

As you get closer to retirement it is important to examine your retirement benefits to ensure you’re on the right path. On August 26-27, 2016, CalPERS is hosting a Benefits Education Event at the Newport Beach Marriott Hotel & Spa for informative breakout sessions, exhibits, and assistance with my|CalPERS. Whether you are new to the workforce, mid-career or nearing retirement, this event can help you plan ahead by better understanding your CalPERS benefits.

In addition, CalPERS will host a 90 minute Planning Your Retirement webinar on Wednesday, August 31, at 11:00 a.m. Planning and education are crucial components to making sound decisions when approaching retirement. By attending this webinar, you will learn about your CalPERS benefits and the strategic choices you can make to maximize your retirement pension.

State Offers Rank-and-File SEIU Employees a 12 Percent Raise Over 4 Years

As of July 19, 2016, the Administration was in the midst of contract negotiations with 16 out of the 21 bargaining units throughout California after most state employee contracts expired on or around July 1.

SEIU Local 1000 is currently in the process of negotiating contracts with the state over 6 different bargaining units. In a document dated July 8, the state offered SEIU rank-and-file employees a 12 percent general salary increase spread out over 4 years. However, the offer would also require a 3.5 percent increase in contributions towards prefunding retirement health benefits over that time period.

Some other details of the state’s offer to SEIU-represented employees are:

• The state would not be able to require furloughs in the first year, but count in subsequent years.
• An 80-hour annual cash-out would be added to vacation and annual leave benefits.
• In addition to the general salary increase, two dozen classifications would get additional raises, the largest going to Unit 1 Actuary Series (10 %) and Licensed Vocational Nurses in Unit 20 (11.5%).

On July 30, 2016, SEIU Local 1000 released a newsletter stating that the talks had come to a crossroads and they “feel that the state’s offer does not meet the priorities [the members] shared [with the state] through town halls and bargaining surveys.” SEIU Local officials did not respond for comment.

According to Ted Toppin, Lobbyist and ACSS Legislative Correspondent, “The statutory provisions of the budget extend the 2016 pay raises – and the prefunding retiree health schedules – extend to the state supervisors and managers who are linked with the rank and file employees of each bargaining unit”.

>> Click here to read more in the article from the SacBee.

Travel Reimbursement Rate Increases for Excluded Employees

Effective July 1, 2016, the Department of Human Resources (CalHR) has increased official state travel lodging and private aircraft reimbursement rates for all Excluded employees. Click here to read the details of PML 2016-020.