This PML is superseded by the HR Manual and is no longer active.
PML Number
1997-042
Title
Assembly Bill 1606 - Military Leave
Date Issued
November 26, 1997
Owner
Classification and Compensation Division
Contact
Jerri L. Judd
Personnel Management Analyst
(916) 324-9415
JLJUDD@.DPA.CA.GOV
Signed By
Mike Vargas, Program Manager
Content
Assembly Bill (AB) 1606, recently signed by the Governor, adds Section 19775.16 to the Government Code to allow State civil service employees and any other officer or employee of the Legislative, Executive, or Judicial Branch of the State, who are military reservists or members of the California National Guard and are called to active duty as a result of the Bosnia crisis on or after November 21, 1995, to receive the difference between their military pay (including allowances) and their State pay for a period not to exceed 180 calendar days.  Benefits, however, are to be offset by the maximum allowable benefit under the Federal Ready Reserve Mobilization Income Insurance Program (RRMIIP).  In addition, employees would be required to repay this compensation as a loan if they did not return to State service within 60 days of being released by the military.
The RRMIIP is an Federal income protection insurance offered to all reservists.  This program became available effective October 1, 1996 and was designed to help families avoid significant financial consequences when called to active duty and lose income due to the difference between active-duty military pay and civilian income.  Reservists were eligible for coverage from $500 to $5,000 for up to one year or a maximum of 12 months during any 18-month calendar period.
AB 1606 provides State employees with income protection when not eligible for the Federal RRMIIP.  In addition, AB 1606 provides that the State shall reimburse an employee for payment of the insurance premium for any period they did not receive a Federal RRMIIP benefit while on active duty, not to exceed 180 calendar days.
General Procedures
The State provides 30 calendar days of State pay per fiscal year for active military duty to employees who qualify based on Government Code Section 19775.1.  On the 31st calendar day, the employee becomes eligible for the provisions afforded them under AB 1606 for up to 180 calendar days.  An employee who does not qualify under Section 19775.1 or is eligible for less than 30 calendar days of State pay shall be eligible for AB 1606 benefits prior to the 31st calendar day.
The benefit of AB 1606 shall be reduced by the maximum allowable benefit from the Federal RRMIIP.  If an employee elected not to participate in the Federal RRMIIP or elected minimum coverage, the benefit of AB 1606 shall be reduced by the maximum allowable benefit available.  Since, the maximum benefit fluctuated due to the availability of Federal funding, the Department of Personnel Administration (DPA) shall verify with the Defense Finance Accounting Service the amount of coverage available to each reservist requesting benefit of AB 1606.
Employees who have completed their active duty as a result of the Bosnia crisis may request payment due them by providing their personnel office with a copy of their orders, military pay records, verification of payment of their Federal RRMIIP premium, and a completed Military Leave Work Sheet (Attachment).  If the reporting and release dates of active duty are changed from the original orders, employees must provide their personnel office with supporting documentation.  By signing the work sheet, the employee authorizes DPA to verify with the Defense Finance Accounting Service the employee’s insurance benefit and amount of insurance coverage to determine if the benefit of AB 1606 should be reduced and, if so, by what amount.
For employees who are currently on military leave and have been called to active duty due to the Bosnia crisis and, therefore, unavailable to complete the work sheet, departments shall be responsible for informing them or their power of attorney of the provisions under AB 1606 and obtaining completed documents.  Without the necessary signature or authorization, the adjusted State pay cannot be issued and will have to be adjusted upon the employee’s return.  However, departments must take the necessary action to ensure the employee’s State-provided benefits will be continued at their current rates.  Further, departments must notify dependents that their medical, dental, and vision State-provided insurance have been reinstated effective November 21, 1995.
Employees at the beginning of their military leave, in addition to a copy of their orders, must provide their personnel office with an estimate (if an exact amount is not known) of their military base pay, any allowances and insurance payments received in order to estimate their adjusted State pay.
The Personnel Office is responsible for computing the adjusted gross State pay, minus all mandatory deductions (taxes, FICA).  Retirement contributions are not deducted from the State pay.  Based on the adjusted net pay, the employee will then determine what, if any, action is needed with regard to their discretionary deductions.  The employee is also to indicate where to forward their adjusted pay warrant.  In order to issue the adjusted warrant, the Military Leave Work Sheet must be signed by the employee.  If the employee is not available and someone else has been provided with power of attorney, their signature is acceptable.
Upon an employee’s return from military leave, payments made under the provision of AB 1606 are to be reviewed in terms of possible over or under payments.  To calculate the correct amount the employee should have received, the gross military pay minus any mandatory deductions and insurance benefit needs to be compared to the gross State pay minus any mandatory deductions.
Those employees who elect to retain their military pay (their military pay may be larger than their State pay) will also need to prepare a work sheet.  Although they will not be receiving a State check, their deductions included in the State-provided benefit package (health, dental, and vision) will be continued at the employee’s option.  The State Controller’s Office (SCO) will need the appropriate documentation to continue the benefit deductions.  It should be noted that in those instances where an employee pays a health benefit premium but is not receiving a State-issued pay check, the State will authorize the continued payment of these premiums via an accounts receivable process.
Salary Related Issues
While on military leave, subject to AB 1606, employees will continue to receive any General Salary Adjustment (GEN), Merit Salary Adjustment (MSA), or Special In-Grade Salary Adjustment (SISA) adjustments.  While on long-term military leave and no longer eligible for the provisions of AB 1606, any GEN, MSA, or SISA will be reflected upon the employee’s return.
Total State Pay
Total State pay is to be based on the salary for the class the employee was in prior to military leave, plus any pay differentials/supplemental pay they were receiving as a result of the duties they were performing on a continuous basis in their position.  This would include such things as bilingual pay, physical fitness pay, shift pay, educational pay, and any recruitment/retention differentials.  Further, those receiving a uniform allowance would continue to accrue qualifying pay periods while under AB 1606.  Such pay differentials as van pool, diving pay, and out of class should not be included in total pay.
Documentation
In order to receive payment under AB 1606, a S51 transaction must be processed.  S51 is currently defined as short-term military leave, however, regardless of the length of the leave, a S51 transaction code must be used to allow existing systems at SCO to process the adjusted payments in a timely manner.  Leave benefits will continue to be accrued according to existing provisions for short- and long-term military leave.
Lump Sum Payment
Those employees who have been placed on long-term military leaves (regardless of the documentation used) are eligible for lump sum payment for leave credits, other than sick leave, they may have at the beginning of their leave.  SCO has indicated these payment requests should be submitted on a Form 674.  (Lump-sum payment is not mandatory for those placed on long-term military leave.)
Routing of Payment Request
Please send completed Military Work Sheet to:
Department of Personnel Administration
1515 “S” Street, North Building, Suite 400
Sacramento, CA  94814-7243
Attention:	Jerri Judd
		Classification and Compensation Division
or fax to:	(916) 327-1668
DPA will verify Federal RRMIIP benefit and route to SCO for payment.
Any questions regarding eligibility or payment of the provisions of AB 1606 should be addressed to Jerri Judd at (916) 324-9415.