(a) Notwithstanding Sections 20677.4, 20677.6, and 20683.4, effective July 1, 2024, the normal contribution rate for state miscellaneous and industrial members who are represented by State Bargaining Unit 16 shall be as follows:

(1) Nine and one-half percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to that member whose service has been included in the federal system.

(2) Ten and one-half percent of compensation in excess of three hundred seventeen dollars ($317) per month paid to that member whose service is not included in the federal system.

(b) Effective July 1, 2025, the normal contribution rate for state miscellaneous members who are represented by State Bargaining Unit 16 shall be as follows:

(1) Nine percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to that member whose service has been included in the federal system.

(2) Ten percent of compensation in excess of three hundred seventeen dollars ($317) per month paid to the member whose service is not included in the federal system.

(c) Effective July 1, 2025, the normal contribution rate for state industrial members who are represented by State Bargaining Unit 16 shall remain at:

(1) Nine and one-half percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to that member whose service has been included in the federal system.

(2) Ten and one-half percent of compensation in excess of three hundred seventeen dollars ($317) per month paid to the member whose service is not included in the federal system.

(d) Effective July 1, 2026, the employee contribution rates in subdivisions (b) and (c) shall remain in effect unless the board has determined that both of the following conditions have been met:

(1) The total normal cost rate increases or decreases by more than 1 percent from the 2025-26 fiscal year total normal cost.

(2) Fifty percent of the normal cost rate rounded to the nearest one-quarter of 1 percent is greater or lesser than the employee contribution rates in subdivisions (b) and (c).

(e) When the board determines that paragraphs (1) and (2) of subdivision (d) have been met, the employee contribution rate for miscellaneous or industrial members shall be adjusted to 50 percent of the normal cost rate rounded to the nearest quarter of 1 percent on July 1 of the fiscal year after the determination.

(f) Each year thereafter, the employee contribution rate shall not be adjusted again on account of a change to the normal cost rate unless the board determines that the normal cost rate has increased or decreased by more than 1 percent of payroll above the total normal cost rate in effect at the time the employee contribution rate was last adjusted.

(g) Employee contributions shall continue to be a percentage of pensionable compensation in excess of five hundred and thirteen dollars ($513) per month paid to the member whose service has been included in the federal system or in excess of three hundred and seventeen dollars ($317) per month paid to the member whose service has not been included in the federal system.

(h) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.

(i) Consistent with the normal rate of contribution for all members identified in this section, the Director of the Department of Human Resources may exercise discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.

(Added by Stats. 2023, Ch. 197, Sec. 15. (SB 148) Effective September 13, 2023.)