The Public Employees’ Medical and Hospital Care Act (PEMHCA) governs the CalPERS Health Program, which allows public employers to provide comprehensive health benefits to employees while managing financial risk. By law, the program covers state employees, and local public agencies may contract with CalPERS to offer these benefits to their employees, even if the agency does not participate in the CalPERS Retirement Program.

The City currently contracts with CalPERS for the Retirement Program for regular employees; however, this contract specifically excludes public safety personnel. As a result, Canyon Lake Police Department employees do not participate in the CalPERS Retirement Program and instead participate in the Public Agency Retirement Services (PARS) retirement program. Despite this, Police Department employees remain eligible to participate in the CalPERS Health Program alongside other City employees.

Because the CalPERS Health Program is governed by PEMHCA, the Act establishes all rules and requirements that a contracting agency must follow. CalPERS considers PEMHCA to be the City’s “health contract,” and the attached resolution formalizes the City’s election to become subject to PEMHCA in order to participate in the program.

This follows the same process the City used to add the Fire Department to the CalPERS Health Program, with City Council approval granted on January 26, 2022, and again on June 14, 2023, when the Council also approved extending the benefit to City Council Members.