C

To:

CalPERS Staff

From:

ANNE STAUSBOLL

Chief Executive Officer

Subject:

FURLOUGH UPDATE

The purpose of this memo is to update you on the furloughs.  As you may have heard, the Service International Employees Union (SEIU), Local 1000, the Exclusive Employee Representative for Bargaining Units 1, 3, 4, 11, 15, 17, 20, and 21, voted to ratify a new contract that will eliminate the two-day mandatory furlough program. 

Under the agreement, employees’ pay is reduced by 4.62% (the equivalent of a one-day per month furlough) and they accrue a personal (furlough) day off each month.  The leave may be used in a manner similar to vacation or annual leave and must be used by June 30, 2012. 

In order to take effect, a bill approving the agreement must be approved by the Legislature and signed by the Governor.  Once this happens, we are expecting additional direction from the Department of Personnel Administration on how the furlough will apply to excluded employees associated with the SEIU Bargaining Units, as well as to employees not covered by these contracts, and associated excluded employees.

Again, please note that for the time being, the two-day furlough (16 hours per month) remains in effect.  We continue to encourage you to use your furlough hours each month if possible; however you have until June 30, 2012, to use all of your furlough hours.  

I will continue to provide you with as much information as possible as it becomes available.  In the meantime, thank you for your ongoing patience.