This PML is superseded by the HR Manual and is no longer active.
PML Number
2016-025
Title
Retirement Contribution Increase for Excluded Employees Affiliated with Bargaining Unit 2
Date Issued
September 30, 2016
Owner
Benefits Division
Contact
Desi Rodrigues
Retirement Program Manager
(916) 324-9400
desi.rodrigues@calhr.ca.gov
Signed By
Belinda Collins, Chief of Benefits Division
Content
Chapter 323, Statutes of 2016 (AB 1630) was signed into law on September 13, 2016.  One of the provisions of this legislation provides an increase to the retirement contribution for excluded employees affiliated with Bargaining Unit 2.
The purpose of this memorandum is to inform you of the increased retirement contribution rate, effective date, and implementation process.
Retirement Contribution Increase
Effective with the October 2016 pay period, the following retirement contribution rates will apply:
•	Miscellaneous and Industrial members who pay social security tax will see an increase from 8 percent to 9 percent. 
•	Miscellaneous and Industrial members who do not pay social security tax will see an increase from 9 percent to 10 percent.
Implementation
The State Controller’s Office will implement the contribution increases for all excluded state employees affiliated with Bargaining Unit 2.
Department’s Responsibility
Departments must notify eligible employees of the retirement contribution increases that will be reflected in the employee’s pay warrant effective October 2016 pay period.
If you have questions related to this PML, please contact Desi Rodrigues, Retirement Program Manager.