SECTIONS 22910-22915 - California Statutes

GOVERNMENT CODE

SECTION 22910-22915

22910. (a) There shall be maintained in the State Treasury the
Public Employees' Contingency Reserve Fund. The board may invest
funds in the Public Employees' Contingency Reserve Fund in accordance
with the provisions of law governing its investment of the
retirement fund.
(b) (1) An account shall be maintained within the Public Employees'
Contingency Reserve Fund with respect to the health benefit plans
the board has approved or that have entered into a contract with the
board. The account shall be credited, from time to time and in
amounts as determined by the board, with moneys contributed under
Section 22885 or 22901 to provide an adequate contingency reserve.
The income derived from any dividends, rate adjustments, or other
funds received from a health benefit plan shall be credited to the
account. The board may deposit, in the same manner as provided in
paragraph (4), up to one-half of 1 percent of premiums in the account
for purposes of cost containment programs, subject to approval as
provided in paragraph (2) of subdivision (c).
(2) The account for health benefit plans may be utilized to defray
increases in future rates, to reduce the contributions of employees
and annuitants and employers, to implement cost containment programs,
or to increase the benefits provided by a health benefit plan, as
determined by the board. The board may use penalties and interest
deposited pursuant to subdivision (c) of Section 22899 to pay any
difference between the adjusted rate set by the board pursuant to
Section 22864 and the applicable health benefit plan contract rates.
(3) The total credited to the account for health benefit plans at
any time shall be limited, in the manner and to the extent the board
may find to be most practical, to a maximum of 10 percent of the
total of the contributions of the employers and employees and
annuitants in any fiscal year. The board may undertake any action to
ensure that the maximum amount prescribed for the fund is
approximately maintained.
(4) Board rules and regulations adopted pursuant to Section 22831
to minimize the impact of adverse selection or contracts entered into
pursuant to Section 22864 to implement health benefit plan
performance incentives may provide for deposit in and disbursement to
carriers or to Medicare from the account the portion of the
contributions otherwise payable directly to the carriers by the
Controller under Section 22913 as may be required for that purpose.
The deposits shall not be included in applying the limitations,
prescribed in paragraph (3), on total amounts that may be deposited
in or credited to the fund.
(5) Notwithstanding Section 13340, all moneys in the account for
health benefit plans are continuously appropriated without regard to
fiscal year for the purposes provided in this subdivision.
(c) (1) An account shall also be maintained in the Public
Employees' Contingency Reserve Fund for administrative expenses
consisting of funds deposited for this purpose pursuant to Sections
22885 and 22901.
(2) The moneys deposited pursuant to Sections 22885 and 22901 in
the Public Employees' Contingency Reserve Fund may be expended by the
board for administrative purposes, provided that the expenditure is
approved by the Department of Finance and the Joint Legislative
Budget Committee in the manner provided in the Budget Act for
obtaining authorization to expend at rates requiring a deficiency
appropriation, regardless of whether the expenses were anticipated.
(d) An account shall be maintained in the Public Employees'
Contingency Reserve Fund for health plan premiums paid by contracting
agencies, including payments made pursuant to subdivision (f) of
Section 22850. Notwithstanding Section 13340, the funds are
continuously appropriated, without regard to fiscal year, for the
payment of premiums or other charges to carriers or the Public
Employees' Health Care Fund. Penalties and interest paid pursuant to
subdivision (c) of Section 22899 shall be deposited in the account
pursuant to paragraphs (1) and (2) of subdivision (b).
(e) Accounts shall be maintained in the Public Employees'
Contingency Reserve Fund for complementary annuitant premiums and
related administrative expenses paid by annuitants pursuant to
Section 22802. Notwithstanding Section 13340, the funds are
continuously appropriated, without regard to fiscal year, to
reimburse the Public Employees' Retirement Fund, the Judges'
Retirement Fund, the Judges' Retirement Fund II, and the Legislators'
Retirement Fund, as applicable, for payment of annuitant health
premiums, and for the payment of premiums and other charges to
carriers or to the Public Employees' Health Care Fund. Administrative
expenses deposited in this account shall be credited to the account
provided by subdivision (c).
(f) Amounts received by the board for retiree drug subsidy
payments that are attributed to contracting agencies and their
annuitants and employees pursuant to subdivision (c) of Section
22910.5 shall be deposited in the Public Employees' Contingency
Reserve Fund. Notwithstanding Section 13340, these amounts are
continuously appropriated, without regard to fiscal year, for the
payment of premiums, costs, contributions, or other benefits related
to contracting agencies and their employees and annuitants, and as
consistent with the Medicare Prescription Drug Improvement and
Modernization Act, as amended.
(g) The Account for Retiree Drug Subsidy Payments is hereby
established in the Public Employees' Contingency Reserve Fund and
funds in that account shall, upon appropriation by the Legislature,
be used for the purposes described in Section 22910.5.
(h) Notwithstanding any other law, the Controller may use the
moneys in the Public Employees' Contingency Reserve Fund for loans to
the General Fund as provided in Sections 16310 and 16381. However,
interest shall be paid on all moneys loaned to the General Fund from
the Public Employees' Contingency Reserve Fund. Interest payable
shall be computed at a rate determined by the Pooled Money Investment
Board to be the current earning rate of the fund from which loaned.
This subdivision does not authorize any transfer that will interfere
with the carrying out of the object for which the Public Employees'
Contingency Reserve Fund was created.

22910.5. (a) For purposes of this section, the following
definitions shall apply:
(1) "Local annuitant" means an annuitant other than a state
annuitant.
(2) "Local employee" means an employee other than a state
employee.
(3) "Retiree drug subsidy" means those amounts described in
Section 423.886 of Title 42 of the Code of Federal Regulations.
(4) "State annuitant" means an annuitant who is retired from
service with the state, including the California State University.
(5) "State employee" means an employee who is in the employment of
the state, including the California State University.
(b) For purposes of applying for and receiving funds as part of a
retiree drug subsidy, the board is designated as the sponsor of a
qualified retiree prescription drug plan for a state or contracting
agency plan, or a related plan, or an individual if both of the
following apply:
(1) The system applies for a retiree drug subsidy related to the
plan or individual.
(2) The system meets the definition of a plan sponsor as described
in Section 1395w-132(c) of Title 42 of the United States Code.
(c) When the board performs the duties described in subdivision
(b) related to, or applies for funds attributable to, a retiree drug
subsidy for a contracting agency plan, local annuitant, or local
employee, the board shall take all necessary steps to ensure that any
funds received by the board shall be deposited in the Public
Employees' Contingency Reserve Fund as described in subdivision (f)
of Section 22910.
(d) When the board performs the duties described in subdivision
(b) related to, or applies for funds attributable to, a retiree drug
subsidy for a state plan, state annuitant, state employee, or state
employee association health benefit plan, the board shall take all
necessary steps to deposit these funds in the Account for Retiree
Drug Subsidy Payments as described in subdivision (g) of Section
22910.
(e) Notwithstanding any other law, all funds received by the board
as a result of a retiree drug subsidy application attributable to a
state employee or state annuitant, or the eligible dependent,
beneficiary, or similarly situated person of that state employee or
state annuitant, shall be deposited in the Account for Retiree Drug
Subsidy Payments, as described in subdivision (g) of Section 22910.
(f) Notwithstanding any other law, funds from the Account for
Retiree Drug Subsidy Payments that is maintained in the Public
Employees' Contingency Reserve Fund shall be appropriated by the
Legislature in the annual Budget Act for the purposes described in
this section. The Legislature shall, in the annual Budget Act,
specify how these funds are to be used, consistent with the federal
Medicare Prescription Drug Improvement and Modernization Act, as
amended, including the following purposes:
(1) Reducing the contributions by the state from the General Fund
or other funds in the State Treasury for health benefits that include
prescription drug benefits for state annuitants.
(2) Reducing contributions by state annuitants for their health
benefits that include prescription drug benefits.
(3) Defraying increases in future employer or state annuitant
health benefit or prescription drug rates.
(4) Implementing cost containment programs related to state
annuitant health benefits that include prescription drug benefits.
(5) Increasing state annuitant health benefits or prescription
drug benefits.

22911. (a) There shall be maintained in the State Treasury the
Public Employees' Health Care Fund to fund the health benefit plans
administered or approved by the board. The board may invest funds in
the Public Employees' Health Care Fund in accordance with the
provisions of law governing its investment of the retirement fund.
(b) The Public Employees' Health Care Fund shall consist of the
following:
(1) Any self-funded or minimum premium plan premiums paid by
contracting agencies, the state and enrolled employees, annuitants,
and family members, including premiums paid directly for continuation
coverage authorized under the Consolidated Omnibus Budget
Reconciliation Act, and as authorized by this part.
(2) Any reserve moneys from terminated health benefit plans
designated by the board.
(c) Income earned on the Public Employees' Health Care Fund shall
be credited to the fund.
(d) Notwithstanding Section 13340, the Public Employees' Health
Care Fund is continuously appropriated, without regard to fiscal
years, to pay benefits and claims costs, the costs of administering
self-funded or minimum premium health benefit plans, refunds to those
who made direct premium payments, and other costs as the board may
determine necessary, consistent with its fiduciary duty.
(e) The Legislature finds and declares that the Public Employees'
Health Care Fund is a trust fund held for the exclusive benefit of
enrolled employees, annuitants, family members, the self-funded plan
administrator, and those contracting to provide medical and hospital
care services.

22913. (a) Contributions of employees, annuitants, and employers
not credited to the Public Employees' Contingency Reserve Fund for
purposes specified in Section 22885 or 22901 shall be utilized to pay
the premiums or other charges to carriers or to the Public Employees'
Health Care Fund.
(b) The Controller shall suitably identify and remit the state's
contribution for each employee or annuitant monthly to the Public
Employees' Health Care Fund or to the carriers, together with amounts
authorized by the employees and annuitants to be deducted from their
salaries or retirement allowances for payment of the employee
contribution.
(c) The contributions of employees and annuitants of contracting
agencies and the contributions of contracting agency employers shall
be suitably identified and remitted monthly to the carriers by
warrant of the Controller upon claims filed by the board.

22915. There is in the State Treasury the State Annuitants' Vision
Care Benefits Fund that is, upon appropriation by the Legislature,
available to the board for expenditure solely for the provision of
vision care benefits to state annuitants pursuant to this part.