Retirees Corner

July 1, 2010

Special Notice from CalPERS inserted below:

July 1, 2010
PRESS RELEASE
CalPERS Retirement Benefit Payments Not Affected by State Budget Impasse
SACRAMENTO, CA - The State of California began a new fiscal year on July 1, 2010, without a state budget.  However, the lack of a state budget does not negatively impact CalPERS retirees and beneficiaries.  Retirees and beneficiaries will continue receiving their CalPERS benefit payments as they normally do because CalPERS is a special fund agency.  Benefit payments are made from the CalPERS pension trust fund not from the state's general fund.

While I think most of you are aware your retirement allowance will not be affected by the lack of a state budget, I am passing this on just in case there are questions.

On another note, some of you may have received a notice described as:

Notice of Pendency of Class Action.

This notice is relative to the current lawsuit filed by CDF Firefighters against the State regarding the methodology used to calculate the lump-sum cash-out when separating from state service. The directions on “opting out” of the case are included in the notice.

This notice has gone out to those that are believed to be in the “class” directly affected by the lawsuit. The actual class will be determined by those that have separated, without cause, from state service during the period starting August 20, 2006 until final adjudication of the case including any appeal period should an appeal be filed by either party. And, most importantly, the person must have been in one of the classifications that received planned overtime as part of their regular pay.

Separated from state service does not mean just retirees, it also includes seasonal employees separated at the end of each season or 9 months; LT employees and TAU employees. If a FF-I, LT or TAU is separated several times during the inclusive period as determined by the court, each separation is to be included in the determination of damages.

This case is still pending. Once the court makes the final ruling, the parties will have 30 to 60 days to file an appeal. The state has already indicated they will likely file an appeal. If that does occur, the case will take another 12 to 18 months to complete.

Additional information will be forwarded as soon as it becomes available.

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