One of what we think is the most significant -- and least discussed -- parts of the new CCPOA contract is the elimination of what's called POFF II contributions by the state beginning this month. With the fund now frozen (no more money is going in, but the fund investments continue), a correctional officer called us to ask, "What can we do with that money?"
Under the terms of the Peace Officer and Fire Fighter II program, the state put an extra 2 percent of correctional officers' pay into a 401(k)-type account. As we reported last month, the union suggested terminating POFF II in exchange for an extra 1 percent addition to the 3 percent top-step raise that kicks in at the end of the contract on July 2, 2013. The administration took that offer and stopped contributing to the program as of April 1.
According to the contract, which still needs to get through the Legislature to make it to Gov. Jerry Brown's desk for his signature, "Any member with POFF II balances may withdraw them to the extent permitted by law."
In other words, consult your tax professional if you're thinking about pulling the money out. Or, of course, you can let the money stay where it is.
Here's the language on PDF page 178 of the 218-page Memorandum of Understanding: