Legal

CalPERS Sues Over California State Employee Furloughs

By Staff Report

Aug. 24, 2009


CalPERS is suing California Gov. Arnold Schwarzenegger over his state-imposed furloughs, claiming that the mandated three days of unpaid time off from work each month compromises the pension fund’s ability to meet its contractual obligations.


The $190.6 billion California Public Employees’ Retirement System, based in Sacramento, filed the lawsuit Wednesday, August 19, in state Superior Court in San Francisco, according to a news release.


CalPERS maintains that the furloughs hinder its ability to clearly reconcile investment trades, post collateral and monitor the activities of external investment managers for risk and compliance, the news release said. They also put the pension fund at risk of not providing timely disability and retirement checks and health care benefit services.


Rob Feckner, CalPERS board president, issued a statement arguing that the savings created from the CalPERS furloughs do not accrue to the state’s general fund.


“State law does not permit general fund budget problems to jeopardize the financial soundness of CalPERS or the benefits that we are obligated to pay retirees,” he said in the release.


Lisa Page, a spokeswoman for Schwarzenegger, said CalPERS should share the same sacrifices as the 200,000-plus other state government workers.


“Every California family and business has been cutting back, and state government has to do the same,” she said.



Filed by Pia Sarkar of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers

About Workforce.com

blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

Compliance

Minimum Wage by State in 2022 – All You Need to Know

Summary The federal minimum wage rate is $7.25, but the rate is higher in 30 states, along with Washing...

federal law, minimum wage, pay rates, state law, wage law compliance

workforce blog

Legal

California’s push for a 32-hour workweek explained, and how to prepare

Summary: California is considering a 32-hour workweek bill for businesses with over 500 staff 4 day wee...

32 hour workweek, 4 day workweek, california, legislature, overtime

workforce blog

Legal

A business owner’s guide to restaurant tipping law

Business owners in the restaurant industry are in a unique position when it comes to employee tips. As ...

restaurants, tip laws, tipping