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It provides terms for maintaining a 2% General Salary Increase effective July 1, 2025, alongside a two-year Personal Leave Program that reduces base pay by 2% in exchange for 3.5 hours of monthly PLP leave. It also suspends OPEB contributions for 2025–26 and 2026–27 and phases OPEB deductions back in over later years, while preserving rules for overtime, leave cash-out, and retirement/disability impacts.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/summary-of-side-letter-july-1-2025-through-june-30-2027/280257/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/summary-of-side-letter-july-1-2025-through-june-30-2027/280257.png","ImageObject",442,249,{"name":88,"@type":89},"Violet","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-23","2026-09-16",true,{"@type":98,"interactionType":99,"userInteractionCount":8},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"Why was this side letter negotiated?","Question",{"text":108,"@type":109},"The State sought to postpone a scheduled July 1, 2025 2% General Salary Increase due to a projected budget shortfall in the 2025–26 California Budget. The parties agreed to a side letter summarizing the negotiated terms.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"What are the Personal Leave Program (PLP) terms for BU 7 employees?",{"text":113,"@type":109},"From the July 2025 pay period through June 2027, employees are subject to PLP of 2% in exchange for 3.5 hours of PLP leave per month. PLP applies with specific usage rules and must be used before most other leave except Sick Leave.",{"name":115,"@type":106,"acceptedAnswer":116},"How are OPEB deductions handled during the term?",{"text":117,"@type":109},"For fiscal years 2025–26 and 2026–27, both employer and employee OPEB monthly contributions are suspended, so the 4% OPEB employee deduction is not withheld from BU7 salaries from July 1, 2025 through June 30, 2027. Beginning July 1, 2027, the OPEB deduction is phased in through later percentage levels.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},280257,1790043418,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":8,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":76,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":9},4398048950312,"https://ap-avatar.wpscdn.com/avatar/400002538284de19e3c?_k=1778320343897328908","Summary of Side Letter  \nJuly 1, 2025 through June 30, 2027  \nIntroduction  \n● Due to projected budget shortfall in the 2025-26 California Budget, the State of California sought to negotiate with CSLEA to postpone the scheduled July 1, 2025 2% General Salary Increase. Therefore, the parties have agreed to a Side Letter and such terms are summarized below.  \nGeneral Salary Increase (GSI) Maintenance of Existing Contract Language  \n● All BU 7 Employees will receive the scheduled 2% GSI effective July 1, 2025.  \no The State will not achieve cost saving by suspending the GSI. Instead, the State will achieve cost saving by implementing a 2-year PLP Program and eliminating their Employer OPEB contribution. (Explained Below)  \nPersonal Leave Program (PLP)  \n● Effective the July 2025 pay period through the June 2027 pay period; employees will be subject to a PLP of 2% in exchange for 3.5 hours per month of PLP Leave.  \n● Each full-time employee will continue to work their assigned schedule with a reduction of pay equal to 2%(this is after the 2% GSI explained above) . (7k employees will have a slightly different reduction. ) The reductions end after the June 2027 pay period.  \no The reduction does not affect an employee’s final compensation for retirement benefits or reduce disability benefits.   \no The normal salary rate (with the 2% GSI and not the PLP reduction) will be used for purposes of calculating overtime, leave cash-out, and differential (such as Longevity, Education and Training) .  \n● Each full-time employee shall be credited with 3.5 hours of PLP on the first day of each period through June 2027.  \no PLP Leave must be used prior to any other leave-with the exception of Sick Leave.  \no PLP shall be requested and used by the employee in the same manner as vacation/ annual leave.  \no PLP may be cashed out upon separation from State service.  \nOther Post-Retirement Employee Benefits (OPEB)  \n● Both the Employer and Employee monthly contributions for prefunding other post-employment benefits for the 2025-26 and 2026-27 fiscal years are suspended.  \no The 4% OPEB Employee deduction shall not be withheld from BU7 Employee salaries beginning July 1, 2025 through June 30, 2027.  \n● Beginning July 1, 2027, OPEB will not go back to 4% immediately – instead the reestablishment of OPEB will be phased in as follows:  \no July 1, 2027: by 1.3%  \no July 1, 2028: by 1.3%, for a total of 2.6%  \no July 1, 2029: by 1.4%, for a total of 4%  \n● Effective July 1, 2030, the OPEB contribution percentage may be automatically adjusted based on actuarially determined normal costs. Any increase or decrease can not be more than 0.5% .  \nExplanation on Impact on Your Pay Check  \n● You receive a 2% GSI July 1, 2025. This rate will be used to calculate Overtime, Differentials, Final Compensation for Retirement, Leave Cash-Out, Promotional Salaries, and future Merit Salary Adjustments.  \n● There will be a 2% Reduction in only base salary from July 1, 2025 and ending June 20, 2027. However, in exchange for this reduction, you will receive 3.5 Hours of PLP per month – this amounts to a total of 84 Hours of PLP over the 24 Months.  \n● After considering the 2% GSI and 2% PLP, the impact on employees will be that their gross base salaries should be the same or higher. For those with percentage base differentials (longevity, training, or education), gross salary will be higher. For those not at top step, MSAs will be based on a 2% higher salary. Everyone will see their base overtime rate (before differentials) increase by  \n2% .  \n● In addition to this, All BU7 Employees will not be paying a 4% OPEB Deduction from July 1, 2025 through June 2027. The OPEB Deduction found in your pay warrant will become zero for these months and go back into your taxable gross salary.  \no On top of this, in July 2027, when the 2% PLP Reduction ends, the OPEB will only be phasing in at 1.3%  \no The MOU ends on June 30, 2027, and we will be at the table bargaining for a new MOU prio","cbCaiknhq7BabrZq","https://ap.wps.com/l/cbCaiknhq7BabrZq","pdf",302362,"English","# Introduction\n## General Salary Increase (GSI)\n## Personal Leave Program (PLP)\n## Other Post-Retirement Employee Benefits (OPEB)\n## Explanation on Impact on Your Pay Check\n## Health Benefits\n## Miscellaneous\n## Duration\n## Reopener Language","[{\"question\":\"Why was this side letter negotiated?\",\"answer\":\"The State sought to postpone a scheduled July 1, 2025 2% General Salary Increase due to a projected budget shortfall in the 2025–26 California Budget. The parties agreed to a side letter summarizing the negotiated terms.\"},{\"question\":\"What are the Personal Leave Program (PLP) terms for BU 7 employees?\",\"answer\":\"From the July 2025 pay period through June 2027, employees are subject to PLP of 2% in exchange for 3.5 hours of PLP leave per month. PLP applies with specific usage rules and must be used before most other leave except Sick Leave.\"},{\"question\":\"How are OPEB deductions handled during the term?\",\"answer\":\"For fiscal years 2025–26 and 2026–27, both employer and employee OPEB monthly contributions are suspended, so the 4% OPEB employee deduction is not withheld from BU7 salaries from July 1, 2025 through June 30, 2027. Beginning July 1, 2027, the OPEB deduction is phased in through later percentage levels.\"}]","Summary of Side Letter - July 1, 2025 through June 30, 2027 | PDF",1789535563]