The State Worker

Chronicling civil-service life for California state workers

January 24, 2012
State Fund pays out $30 million; 705 jobs still on chopping block

State Compensation Insurance Fund has paid $30 million to 971 state employees who agreed to leave the agency by Dec. 31 and give up their preferential rights to other state government jobs.

The exit payments averaged nearly $31,000 per departing employee in addition to any leave time they cashed out. The money went to staff members in danger of layoff who accepted the so-called "transition package" under terms negotiated by the quasi-public agency and Service Employees International Union Local 1000. It was the first time that state workers whose jobs were in danger received extra money to leave.

The quasi-public State Fund, which competes with private-sector workers compensation insurance carriers and receives no tax dollars, has been downsizing for a couple of years in response to its shrinking market share. About 1,800 employees in 26 job classifications slated for elimination could have taken the deal at an estimated cost of up to $50 million to State Fund.

On a related note, State Fund spokeswoman Jennifer Vargen forwarded a revised layoff list (embedded below) that shows that 705 jobs are still on the chopping block after the voluntary departures have been figured in.

(The "auth." column shows how many jobs the fund has authorized to keep. The "final potential layoff" column shows how many jobs will be cut. Adding the two columns together indicates how many positions currently exist.)

The biggest cuts are planned for Los Angeles County (181 jobs), Alameda County (143) and Orange County (86). Sacramento County stands to lose 36 jobs and San Joaquin County is facing a loss of 28 positions.
120123 SCIF Layoffs by Class and County

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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


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