The State Worker

CalPERS retiree returned to work for twice the pay, flouting law. He wants to keep the money

Dudley Lang was making $20,000 per month to manage finances for a Los Angeles suburb with about 200 residents before he retired in October 2010.

Three months later, Lang was hired to do the same job as a retired annuitant, subject to CalPERS rules including that he couldn’t work more than 960 hours per year and couldn’t receive abnormally high pay for the work.

CalPERS auditors determined he was making $135 per hour as a retired annuitant — twice what he earned on an hourly basis before he retired, according to CalPERS summary documents. He also worked 990 hours in fiscal year 2011-2012, according to the documents.

The retirement fund reduced his pension based on its findings. Lang has been trying to get CalPERS to restore the pension, and its Board of Administration will make a final decision on Wednesday.

Lang acknowledged to CalPERS he mistakenly worked more than 960 hours. He argues that since he was paid on contract as the City of Industry’s controller, it’s not fair to convert his full-time pay to hourly pay to compare his salary to his pay as a retired annuitant.

He said in his petition for reconsideration to the CalPERS board, “the punishment does not fit the situation.”

“I just think it’s inequitable,” he said in an interview.

The City of Industry has very few residents but several thousand people work there.

In a 2016 audit, the State Controller’s Office found the city’s management was severely deficient for an audited period from July 2012 through June 2014, and that the city refused to provide a swath of personnel records. A followup audit released in January of this year found that problems persisted.

Lang oversaw city budgets and special projects until December 2012. Special projects included a proposal to locate an NFL stadium there, he said.

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When he retired in 2010, he was planning on a $9,500 per month pension, he said. CalPERS cut that in half since his salary was paid half by the city and half by a redevelopment agency, he said.

Then CalPERS further reduced his pension after the retired annuitant decision, he said.

He said he wants the fund’s board to adopt an administrative solution that requires him to pay less.

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