State Compensation Insurance Fund has sent an e-mail to its employees about interest due them on the pay they lost to furloughs. Two judges ruled the policy violated state insurance code.
Click the following link to read the e-mail from fund HR Director Andreas Acker.
From: Andreas W. Acker
Sent: Mon 11/23/2009 1:53 PM
To: SCIF AllUsers
Subject: Interest UpdateHello,
I would like to update you on the status of the interest payments due on the furlough back pay. The interest calculation has been more complicated to implement and it has taken the State Controller's Office (SCO) more time to work through numerous issues pertaining to the furlough back pay than anticipated. We needed their information to be completed before we could finish the interest computation, which includes multiple calculations for each employee.
While we will provide more complete information later, there are three basic determinations. First, the interest for the period between when the money was withheld and the date of the court's written decision will be determined at a simple annualized 7% rate. Second, the interest for the period between the written decision and when SCO issued the back pay will be determined at a simple annualized 10% rate. Third, the outstanding amount still due is continuing to accrue interest until paid, and that additional amount will also be determined at a simple annualized 10% rate. Our preliminary calculations show that most employees will receive between $50 and $100.
We plan to send the interest calculations to SCO by the first week in December. We have not been able to get a firm commitment from SCO on how long it will take them to issue the checks. We will continue to monitor the progress and update you as we receive firm information. Thank you.
Andreas
The Author
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