AB1762 - Public employment: retirement benefits.

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1762 Introduced by Assembly Member Jeff Gonzalez February 09, 2026 An act to add Section 22904.5 to the Government Code, relating to public employee benefits. LEGISLATIVE COUNSEL'S DIGEST AB 1762, as introduced, Jeff Gonzalez. Public employment: retirement benefits. Existing law, the Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, authorizes the board to contract for health benefit plans for employees and annuitants, as defined, which may include employees and annuitants of contracting agencies, as specified. Under existing law, the employee’s or annuitant’s contribution is the total cost per month of coverage less the portion contributed by the employer. Existing law prescribes a minimum level for the employer’s contribution toward the employee’s or annuitant’s health benefits coverage. Existing law provides that the provisions governing PEMHCA are controlling over a memorandum of understanding, except as specified. Notwithstanding these PEMHCA provisions, existing law authorizes the City of San Gabriel to agree with its employees, as specified, that the employer contribution for postretirement health care coverage shall be subject to specified conditions, including, among other things, a collectively bargained memorandum of understanding and a minimum level for employer contributions, as specified. This bill would, similarly, authorize the City of Indio to enter into an agreement with certain employees hired on or after January 1, 2025 to provide employer contributions for postretirement health care coverage, subject to specified conditions, including, among other things, a collectively bargained memorandum of understanding and a minimum level for employer contributions, as specified. The bill would invalidate an agreement if it provides an employer contribution to employees with less than 5 years of credited service with the City of Indio. The bill would apply only to employees who retire after the date that a memorandum of understanding authorizing this benefit becomes effective. The bill would require the City of Indio to provide notification, as prescribed, of the agreement and any additional information necessary to implement those benefits. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Indio. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 22904.5 is added to the Government Code, to read: 22904.5. (a) Notwithstanding any other provision of this part, the City of Indio, the employees’ exclusive representative, and unrepresented employees may agree that the employer contribution for postretirement health coverage shall be subject to all of the following: (1) Credited years of service that the employee worked with the City of Indio. (2) A memorandum of understanding regarding postretirement health coverage mutually agreed upon through collective bargaining. This issue shall not be subject to the impasse procedures set forth in Chapter 10 (commencing with Section 3500) of Division 4 of Title 1. (3) The employer contribution established by this section shall not be less than the adjusted employer contribution required by subdivision (b) of Section 22892. (b) This section does not apply to any employee who retired before the effective date of the memorandum of understanding. In the event that the memorandum of understanding establishes a retroactive effective date, this section applies only prospectively and any employee who retires before the memorandum of understanding is signed shall not be affected by it. (c) An agreement reached pursuant to subdivision (a) is not valid if it provides an employer contribution for employees with less than five years of credited service with the City of Indio. (d) The City of Indio shall provide, in the manner prescribed by the board, notice of the agreement established pursuant to this section and any additional information necessary to implement this section. (e) This section applies only to the City of Indio and only with regard to employees who are first hired on or after January 1, 2025, and elected officials who first served as elected officials on or after January 1, 2025. SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of postretirement health coverage with regard to employees of the City of Indio.