Vesting Schedule Page

Purpose

On this page you can provide the vesting schedule details when creating or updating a vesting schedule. If your agency type is a public agency, you must select the standard State Schedule. If your agency type is a school district, you can select either a standard vesting schedule or create a custom vesting schedule. Vesting is a cost-sharing agreement in which the employer contribution or level of benefits offered to subscribers varies based on years of service. The percentage of the employer contribution will increase by an annual increment as the employee's service years increase. The vesting schedule defines when and by how much your contribution should increase. You may have one active vesting schedule for each benefit type in the health group.

 

Background

Organizations that do not currently contract with CalPERS for health or retirement benefits must qualify as a public agency to initiate a health contract. To qualify as a public agency you must submit qualification documentation to CalPERS.

Once approved, you can submit your initial health contract information. Based on your contract type, you may create groups to classify your employees and retirees. A group is a classification of employees and retirees. Members within a group are eligible to receive the same benefits (i.e., medical, dental, or vision) and provisions as other members of the same group. For each benefit type, you can select the employer share to subsidize the health premium for your subscribers and their dependents. You can also choose to provide a vesting schedule and/or optional provisions for each health group.

After you submit the contract, CalPERS reviews the information and activates your contract upon approval. If you currently have a retirement contract with CalPERS, you can generate your retiree list and designate the retirees to receive health benefits. Otherwise you can upload your retiree list to qualify the retirees for health benefits. You can rescind health contracts prior to the contract effective date, and amend or terminate active contracts.

 

How To...

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Items on the Page

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This Online Help page describes all items and functions that may be performed on the corresponding my|CalPERS page. Depending on your security role(s), you may have limited access to view or update certain items and functions on this page.

 

 

How to Access the Vesting Schedule Page

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Page

Steps

My Home Page

Select the Profile global navigation tab.

Business Partner Summary Page

Select the Health Contract local navigation link.

Select Health Contract Page

In the Select Health Contract section, select a Health Contract link.

Contract Summary Page

In the Maintain Contract section, select the To continue with the process for PEMHCA Health Contract, click here link.

Contract Details Page

Select the Save & Continue button.

Group Summary Page

In the Group Summary section, select a Group Number link.

Group Details Page

Select the Save & Continue button.

Group Benefit Type List Page

In Benefit Types Section, select a Benefit Type link.

Group Benefit Type Details Page

In the Benefit Type and Contribution section, select the Vesting checkbox.

 

Select the Continue button.

Employer Share – Equal Page or Employer Share – Unequal Page

Select the Save & Continue Button

Vesting Schedule List Page

In Vesting Schedule List section, select the Add New Button.

Items on the Page

Health Contract Information

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This section displays details about your health contract, including the contract number, type, and category, group number, and benefit type. There can be three benefit types to each group, and multiple groups on a contract.

Item

Description

Contract Number

The contract’s unique 10-digit number assigned by CalPERS.

Contract Type

The type of heath contract that identifies how benefits will be allocated across employees and retirees.

Contract Category

Indicator of whether the health contract will include employees that are currently contracts with CalPERS for health and/or retirement benefits. The contract category can be CalPERS/ CalSTRS or Non-CalPERS.

Group

The name of the group for a set of employees and retirees. A member within a group will receive the same benefits and optional provisions as another member in the same group.

Benefit Type

The types of available benefit options (i.e., Medical, Dental or Vision) provided by the Business Partner for a group.

 

Vesting Schedule

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In this section, you can select to create a custom vesting schedule or select a standard vesting schedule if your agency type is a school district. If your agency type is a public type, you must select the standard State Schedule to calculate your contribution to a benefit type within a group. Vesting is a cost-sharing agreement in which the employer contribution or level of benefits that is offered to your retirees varies based on their years of service. The vesting schedule determines when the percentage of your employer contribution increases based on the retiree’s years of service. You can select details for the vesting schedule, such as its type, the vesting basis for when the vesting schedule will be applicable, and its end date.

Item

Description

Contribution Type

The type of employer share contribution for the group. Under unequal contribution, active employees and retirees within the same group receive different contribution amounts to their health plan premiums. Employers contribute less to retirees than active employees. The retiree contribution will increase annually by at least five percent of the active employee contribution until the two amounts are equal. Once the active employee and retiree contribution amounts become equal, they cannot subsequently be changed to unequal amounts.

Effective Date

The date that the vesting schedule becomes effective. It is the same date as the group effective date.

Subgroup

The name of the vesting subgroup reflecting the group number and vesting schedule name. This identifies a specific vesting schedule within a specific group.

Vesting Provision Radio Button

When selected, the radio button indicates the vesting provisions available to the employer based of California Government Codes. View values

Vesting Schedule Radio Button

When selected, the radio button indicates the option to select a standard vesting schedule or create a custom vesting schedule. The radio buttons that can be selected are Select Standard or Create Custom. If only one type or schedule is available then it is the default; if more than one is available than no default is selected.

Standard Vesting Schedule Dropdown

The Standard Vesting Schedule is used to select a vesting schedule already available in the system. View values

Custom Vesting Schedule

 

Effective Date

The date the custom vesting schedule is effective.

 

Schedule Name

The name of the custom vesting schedule.

 

Schedule Description

A general description of the custom vesting schedule.

Add Custom Vesting Button

Select the button to create a new custom vesting schedule. The next page displays. The View Custom Vesting button is disabled until you after create your schedule.

View Custom Vesting Button

Select the button to view the new custom schedule you have created. The Add Custom Vesting button is disabled.

Vesting Basis

 

Vesting Basis Dropdown

The Vesting basis is used to determine when vesting is applicable.  This applies to a standard or custom vesting schedule. View values

 

Vesting Basis Date Radio Button

When selected, the radio button indicates the option date being used when applying the vesting basis. If the hire date, for instance, is after the vesting schedule effective date, the Participant qualifies for vesting.  This applies to a standard or custom vesting schedule. The radio buttons that can be selected are Provide Date or Use Effective Date for Custom Vesting Schedule (from Memorandum of Understanding).

 

Provide Date

The date that is being provided for the Vesting Basis Date.

 

End Date

The date at which the vesting schedule is terminated or becomes ineffective.  This applies to a standard or custom vesting schedule.

 

Non-vesting Employees can opt to be a part of this vesting group Checkbox

When selected, this checkbox indicates that other employees that are not part of this vesting sub-group have the option to a part of this vesting option.  This applies to a standard or custom vesting schedule.

Memorandum of Understanding

 

Group is not represented by a bargaining unit and there is no applicable Memorandum of Understanding Checkbox

When selected, this checkbox indicates the option to waive MOU requirement for groups that are not represented by a bargaining unit.

 

Vesting MOU

The Vesting MOU documentation.

 

Vesting Employer Share

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In this section, select the type of employer contribution for your employees. Your employer share is unequal if you provide active employees and retirees different amounts of employer contribution.  Employers contribute less to retirees than active employees. The retiree contribution will increase annually by at least five percent of the active employee contribution until the two amounts are equal.

Item

Description

Active Employee Share Type (For non-vesting)

The employer share setup for active employees without vesting.

Retiree Share Type (For Non-Vesting)

The employer share setup for retirees who are not subject to vesting.

Retiree Share Type Dropdown

The types of employer share options available to for you to subsidize retiree benefit costs. View values

Add Employer Share Button

Select this button to add your employer share. The next page displays.

View Employer Share Button

Select this button to view the details about your existing employer share. The next page displays.

 

Page Buttons and Links

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Item

Description

Save & Continue Button

Select this button to save the information you entered and view the next page to continue with the next step.

Clear Button

Select this button to clear all entered information and refresh the page.