The Personnel System Reform Act. 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 benefit, 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.

Management Rights. The PSRA prohibits an employer from bargaining over management rights, which include: 

• the functions and programs of the employer, the use of technology, and the structure of the organization;
• the employer's budget and the size of the agency workforce, including determining the financial basis for layoffs;
• the right to direct and supervise employees;
• the right to take whatever actions are deemed necessary to carry out the mission of the state and its agencies during emergencies; and
• retirement plans and benefits.

The prohibition on bargaining over management rights in the PSRA does not prevent the employer from bargaining over contributions for supplemental retirement benefits, including medical plans, administered by, or on behalf of, an employee organization. It is specified that retirement plans and retirement benefits administered by the Department of Retirement Systems, rather than retirement plans and benefits in general, are excluded from bargaining. Contributions for supplemental retirement benefits administered by, or on behalf of, an employee organization are a mandatory subject of bargaining.

• Makes contributions for supplemental benefits administered by, or on behalf of, an employee organization a mandatory subject of bargaining.

The committee recommended a different version of the bill than what was heard.  PRO: Workers that are eligible for early retirement are unable to retire because they are not eligible for Medicaid. The union can offer them supplemental plans. The bill will help workers with demanding jobs retire. The bill does obligate the state to fund these plans, just bargain over them.

OTHER: The legislation is broader than its stated intent. There is no guarantee it will not increase the costs to the state. It may obligate the state to fund two separate pensions. At the local level, the result tends to be the employer participating in the union pension at taxpayer expense.

PRO: This will allow Teamster members at the Department of Corrections to retire significantly earlier, which is important for this difficult jobs. This benefit is already available to local government corrections employees. The fiscal note to this bill is puzzling because OFM already bargains with these employees and it will probably be the same team.