About 27,000 managers in California state government are about to get a 3 percent salary hike and a new deduction from their paychecks meant to offset the costs of the health care they’ll use in retirement.
The raises come first.
They’ll kick in on Oct. 1, according to a directive published Monday by the California Human Resources Department.
Next July, the managers will join several other state bargaining units starting to make contributions toward their retiree health care.
By then, managers likely will receive another raise, state Human Resources Director Richard Gillihan said.
Altogether, the raises are expected to cost about $99.4 million a year, according to the state Finance Department.
This week’s raises go to a group of state employees who are not represented by unions, which means Gov. Jerry Brown’s office has wide leeway to set their compensation without labor negotiations.
Since last year, his administration has struck several agreements with unions that compel employees to make contributions toward their retiree health care. The state has a $71.8 billion unfunded retiree health care liability, according to a 2014 report from the state controller’s office.
Gillihan said the state has not yet determined exactly how much managers will start paying for retiree health care next year. Over three years, the sum is projected to increase to up to 4 percent of manager salaries, with the state matching employee contributions.
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