Uses of Revenue
Health Care Premium Increase, $36,226,000
The California Public Employees' Retirement System (CalPERS) administers CSU employee health care benefits. Health care premiums are shared between the CSU and its employees, with the CSU funding a significant portion of the costs. The 2013/14 CSU budget plan includes $36.2 million to fund the base increase in employer-paid health care costs resulting from changes in premiums effective January 2013. The following chart indicates the Government Code (employer-paid) health care contribution increases from 2009 through 2013:
|Government Code Health Care Monthly Employer Contribution Rates|
+ 1 dependent
+ 2 or more
The CSU is governed by Government Code Section 22871 that defines the way employer-paid health care contribution rates are calculated. Either through policy or collective bargaining agreement, the CSU covers health care costs for represented and non-represented employees up to an amount equivalent to the established Government Code rates, with the exception of Unit 6 (Skilled Crafts), which bargained for CSU employer health contribution rates slightly above Government Code rates.
The total increase in CSU health care costs due to contribution changes during this five-year period is nearly $106 million.
|5-Year Increase in Health Care Costs|
|Government Code Health
|5-Year Increase in CSU Health Care Costs||$105,903,000|
The 2013/14 budget request funds permanent base budget costs associated with January 2013 employer health care premium increases. The CSU must absorb approximately $18.1 million during fiscal year 2012/13 to fund the one-time costs related to the January 2013 premium increases for the six-month period from January-June 2013.