Section 588.8 - Risk Pools-Classification of Benefit ProvisionsThe CalPERS Board shall separate the benefit provisions available to a contracting agency into various classifications. These classifications will be handled as follows:
(a) Class 1 benefits may vary by rate plan within each risk pool. Agencies contracting for a Class 1 benefit will be responsible for the past service liability associated with such benefit and will be required to pay a surcharge established by the actuary to cover the ongoing cost (normal cost) of the Class 1 benefit. Class 1 benefits shall be the optional benefits meeting the following criteria: (i) Impact the ongoing cost (either total or employer normal cost) of the risk pool by more than 0.25% of payroll; or(ii) The benefit is not available to all plans participating in the risk pool.(b) Class 2 benefits may vary by rate plan within each risk pool. Agencies contracting for a Class 2 benefit will be required to pay the full one time cost of the benefit, as established by the actuary. Class 2 benefits shall be the optional benefits, other than Class 1 benefits, meeting the following criteria:(i) No impact on the ongoing cost (normal cost) of the risk pool; and(ii) Provide a one time increase in benefit with an identifiable increase in accrued liabilities.(c) Class 3 benefits may vary by rate plan within each risk pool. However, the employer contribution rate will not vary within the risk pool due to the Class 3 benefits. Class 3 benefits shall be the optional benefits meeting the following criteria: (i) Impact the ongoing (normal cost) of the risk pool by no more than 0.25% of payrollCal. Code Regs. Tit. 2, § 588.8
1. New section filed 9-23-2004; operative 9-23-2004 pursuant to Government Code section 11343.4 (Register 2004, No. 39). Note: Authority cited: Sections 20120, 20121 and 20840, Government Code. Reference: Section 20840, Government Code.
1. New section filed 9-23-2004; operative 9-23-2004 pursuant to Government Code section 11343.4 (Register 2004, No. 39).