Blog Viewer

CSDA member’s voices have been heard and CalPERS has again delayed taking action that could impose significant new pension liability on retired annuitants and public agencies. CalPERS deferred bringing consideration of the Administrative Law Judge’s (ALJ) decision in the Lang matter as precedential before the Board of Administration last week.

The Lang Decision involves a case related to a retired annuitant who violated CalPERS rules. As a consequence, the retired annuitant was reinstated into CalPERS as an active member and was required to pay back retirement benefits received while working as a retired annuitant. The retired annuitant’s employer was also required to pay retroactive contributions for the time the annuitant was being re-enrolled.

The Lang Decision is significant because it placed the burden of proof for contesting CalPERS’ finding on the retired annuitant and also waived the three-year statute of limitations on how far back CalPERS can look when re-enrolling an annuitant, collecting benefits paid, and requiring employers to pay contributions for the re-enrolled annuitant.

While the consideration of adopting the decision as precedential has been delayed for now, it may come back for consideration again sometime in 2021. Should CalPERS adopt the decision as precedential, it will be pointed to by CalPERS’ attorneys in future cases before ALJs to provide direction to the ALJs on how they are to decide cases.

Though CSDA is not disputing the decision made in the Lang matter, CSDA is opposed to establishing precedent that would place the burden of proving CalPERS has erred in their determinations on retirees and allowing CalPERS to easily waive statutes of limitations on penalties and fees in retired annuitant cases. These cases, which could have significant financial impacts on retirees and their employers, should be decided on a case-by-case basis rather than streamlining CalPERS’ ability to make determinations and issue fines and fees.

Thank you to the districts that submitted letters of opposition to CalPERS adopting the decision in the Lang matter as precedential. CSDA will continue to keep our members informed on any developments related to this matter should they come up again in 2021. To receive the most up to date information on issue related to CalPERS and the State Legislature please make sure to visit CSDA’s website and join the Advocacy News Community. 

#Advocacy News