PECG Delivers . . . New MOU — 2018-2020

Two Pay Raises, Experience Differential, Geographic Pay

Your PECG Bargaining Team and CalHR, representing the Governor’s Office, have reached agreement on a new Memorandum of Understanding (MOU) or contract for Bargaining Unit 9 employees for the next two years.  Once it is approved by the Legislature and PECG’s membership, Unit 9 employees will receive a 4.5% raise, retroactive to July 1, 2018, and another 4% raise on July 1, 2019.  Employees with more than 20 years of state service will receive additional compensation based on experience of 2% of their base salary, increasing by 2021 to 5.5% of salary for those with at least 23 years of service.  Employees whose worksite is located in the five counties with the highest median home prices (Alameda, Marin, San Francisco, San Mateo, and Santa Clara) will receive a geographic pay differential of $250 per month effective July 1, 2018.

Other improvements to the current contract include increased voluntary personal leave, improved mentoring leave, increased uniform allowance, and expanded recruitment and retention differentials for those working at eight prisons.

The contract requires approval of the Legislature and the PECG membership.  Ballots have been mailed to the homes of PECG members in Unit 9, along with a PECG Informer with additional details about the new MOU.  Ratification meetings are being held throughout the state so you can attend, learn more about the contract, and get answers to any questions you may have.  The details on the times and locations of these meetings will be emailed to you.

PECG’s Supervisory Meet and Confer Team will meet with CalHR to meet and confer on the application of these compensation and other benefits to PECG’s supervisory and managerial members.

Continue reading below for information about Experience Compensation and Geographic Pay.  Click here to read the PECG Informer with additional details about the new MOU.


Experience Compensation

PECG is proud to be the first non-safety state employee bargaining unit to win experience compensation or longevity pay in a state Memorandum of Understanding (MOU).  PECG’s new MOU provides General Salary Increases of 4.5% on July 1, 2018 (retroactive) and 4% on July 1, 2019 – and the new groundbreaking experience differential. 

Here is an infographic with the effective dates, the years of state service factors, and the percentage pay differential associated with each effective date and years of service factor.  Unit 9 employees will receive the experience differential, which will factor into pension calculations, based on this schedule:

  • Any Unit 9 employee with 20 or more years of state service (on July 1, 2018 and any time thereafter) will receive a 2% ongoing monthly compensation differential (on top of base pay) that will be calculated off his or her base salary.  In future years, the differential escalates up according to the schedule above and will be applied when an employee reaches the experience threshold.
  • The differential is an ongoing, monthly payment that is in addition to your base salary.  For example, it will be in addition to and on top the two GSIs provided in the contract.
  • The experience differential is considered pensionable compensation – your salary and the differential will be used to calculate your retirement benefits.
  • If your service qualifies you for one of the differentials, it will be provided in the July pay warrant the year the differential takes effect.  It will be provided to all Unit 9 employees in the month when they qualify for any of the differentials.  For example, if you do not have 20 or more years of service as of July 1, 2018, but will in December 2018, your 2% differential will be provided in December 2018.
  • The differential percentages are not cumulative.  For example, a 22 year employee on July 1, 2020 will be eligible for a 4% total differential above base pay – not the cumulative total of differential raises from previous years of service in years 20 and 21.
  • The differential tops out at 5.5% in July 1, 2021 for those with 23 years or more of service.  If you remain in state service after your 23rd year of service, you will continue to receive the 5.5% differential.
  • The experience differential is an important victory for the Bargaining Team – and one they will work hard to protect in future agreements.

Geographic Pay Differential

Currently, all employees in a classification receive the same salary regardless of their work location, even though the cost-of-living in some areas is much higher than others.  This MOU provides an important first step in addressing that problem.  Employees who work in any of the five counties — Alameda, Marin, San Francisco, San Mateo, and Santa Clara — with the highest median home prices will receive an additional $250 per month effective July 1, 2018.  The geographic pay differential is not considered compensation for the purpose of calculating employee retirement benefits.