Title:  CalPERS Takes Legal Action on Furloughs
Date:	8/19/2009 4:07:02 PM 

PRESS STATEMENT
CalPERS Takes Legal Action on Furloughs
SACRAMENTO, CA – The California Public Employees’ Retirement System (CalPERS) today filed legal action in Superior Court in San Francisco seeking judicial review of the applicability of the state’s furlough program to the pension fund.  CalPERS Board President Rob Feckner, noting that the savings created from the CalPERS furloughs do not accrue to the General Fund of the state of California, issued the following statement in connection with the lawsuit:
“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.  Further, the furlough is inhibiting our ability to provide services to our members and to meet our contractual responsibilities to local employers.”
Feckner said he can appreciate the challenges faced by the state’s general fund, but CalPERS’ duties to the System’s members and beneficiaries take precedence. 
“While we understand and appreciate the fiscal problems experienced in the State’s general fund, we are required under the Constitution to meet our fiduciary duty as trustees to ensure prompt, undisrupted service to our members.”
The furlough puts CalPERS at risk of not providing timely disability and retirement checks, and health care benefit services.  In CalPERS investment arena, it harms the ability to clearly reconcile investment trades, post collateral in a timely manner, and monitor the activities of external investment managers for risk and compliance in a timely manner. 
CalPERS, with $190 billion in assets, is the largest public pension fund in the U.S. It has more than 2,300 employees and administers retirement benefits for more than 1.6 million active and retired State, public school, and local public agency employees on behalf of 2,600 California public employers, and health benefits for nearly 1.3 million members. For more, visit www.calpers.ca.gov.


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http://www.calpers.ca.gov/index.jsp?bc=/about/press/home.xml 

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