The State Worker

Chronicling civil-service life for California state workers

July 16, 2009
Is CalPERS about to dump furloughs?

CalPERS CEO Anne Stausboll this week sent a letter to Controller John Chiang and DPA Director Dave Gilb. We'd sum up her message like this: We've been furloughing people, but we don't have to. We'll do it again this month, after that all bets are off.

We've heard that the furlough policy -- and the possibility of another day being tacked onto it -- has hurt CalPERS' ability to recruit new hires. Stausboll notes in her letter:

CalPERS has independent statutory authority, pursuant to Government Code section [20098], to appoint and fix the compensation of certain top level executive, actuary and investment staff. This authority is expressly reserved to CalPERS for the purpose of fulfilling its fiduciary responsibility "to recruit and retain highly qualified and effective employees ... " (Government Code, section 20098, subdivision (c).) In implementing any furlough order, CalPERS reserves all of its rights as set forth in Government Code section 20098 and related statutes.

Stausboll doesn't mention this, but we'd add that the fund's Board of Administration is set to meet in Folsom later this month. The fund hasn't put out the agenda yet, but we expect the board will take a look at CalPERS' furlough policy. This link takes you to the Board of Administration's Folsom meeting notice.

Read Stausboll's July 13 letter by clicking here.

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at jortiz@sacbee.com.

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