The Personnel System Reform Act (PSFA) provides a collective bargaining framework for state employees to negotiate over wages, hours, and conditions of employment. Employers and employees may not bargain over rights of management. Rights of management include, among other things, retirement plans and benefits.
The Department of Retirement Systems (DRS) provides retirement plans for public employees. Some unions offer supplemental retirement plans for union members. Plans administered by the DRS, and plans administered by or for unions, are excluded from bargaining under the PSFA.
The prohibition on bargaining over retirement plans and benefits is narrowed to prohibit bargaining over retirement plans and benefits administered by the DRS. Employers may therefore bargain over employer contributions to supplemental retirement benefits administered by, or on behalf of, employee organizations, including medical plans.