The Personnel System Reform Act (PSRA) provides for collective bargaining for classified employees of state agencies and institutions of higher education.  Matters subject to bargaining under the PSRA include wages, hours, other terms of conditions of employment, and the negotiation of any question arising under a collective bargaining agreement.  The employer is not required to bargain over health care benefits or other employee insurance benefits, except the dollar amount expended on behalf of each employee for health care benefits is subject to bargaining.  The employer is also not required to bargain over any retirement system or retirement benefit.  The PSRA prohibits the employer from bargaining over management rights, which include, among other things, retirement plans and benefits.

For Department of Corrections employees, contributions for supplemental retirement benefits, including medical plans, administered by or on behalf of an employee organization is a mandatory subject of bargaining, but is not subject to interest arbitration.  Contributions for supplemental retirement benefits are not included in the requirement to bargain over the dollar amount expended on behalf of each employee for health care benefits.