AB 269

Currently, cities, villages, towns, counties, school districts, and technical

college districts (local governments) provide health care benefits for their employees.

Some also provide postretirement health care benefits for their employees.

This bill prohibits a local government from providing health care benefits to any

employee hired on or after January 1, 2016, for use upon the employee's retirement,

including compensated absences but excluding the implicit rate subsidy, unless the

cost of the benefit is fully funded in a segregated account, based on an actuarial study

conducted at least once every four years or other method that complies with generally

accepted accounting principles. The bill also provides that, if a local government

dissolves a segregated account established for the purpose of providing such health

care benefits, the local government must provide for the equitable distribution of the

proceeds among the beneficiaries.