UAPD has received a number of calls from doctors indicating that there is some confusion about a new paycheck deduction for State Bargaining Unit 16 doctors, which is labeled as BU16 CERBT on the paystub.

BU16 CERBT is the “Prefunding of Post-Retirement Health Benefits” deduction.  It is money that the State collects now in order to offset the cost of health care benefits when upon retirement.  In this way, doctors and the State are sharing the responsibility for prefunding retiree health benefits.  Negotiated in the previous agreement (2010), the contribution of 0.5% of base salary was scheduled to go into effect July 1, 2012.  However, when UAPD entered into negotiations with the State regarding the Personal Leave Program of 2012, part of that agreement was to delay the effective date one year, until July 1, 2013.

Because of rapidly rising premiums, paying for the health care benefits of future retirees is of great concern to many employers today.  Requiring current employees to contribute a small amount towards funding their future health benefits is considered a better option than seeing those benefits slashed or eliminated.  If BU 16 members have any questions or comments, they should feel free to contact a UAPD labor representative.