January 18, 2013
External Affairs Branch
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
CalPERS Estimates Savings up to $1.6 Million Through Use of Additional Appointments
Suspends HR practice until matter is resolved by State officials
SACRAMENTO, CA – The California Public Employees' Retirement System (CalPERS) today issued the following statement about the use of Additional Appointments to launch the Pension Fund's state-of-the-art computer system, to reduce backlogs and to improve customer service levels:
"We are extremely grateful for the sacrifices of all our staff and want to commend them for the endless hours they have worked. Our employees are the backbone of CalPERS and we are proud of their tireless dedication to the public employees and public employers of California. We know that the use of Additional Appointments is a permissible human resources tool, and we are confident this practice was used at CalPERS with the best of intentions and in good faith.
"It is now obvious that there are various interpretations of the use of Additional Appointments across all state departments. Most importantly, we recognize that the media has sensationalized this practice and it has now become a significant distraction for policy makers and our own employees from the important business of serving California. Therefore, effective tomorrow (January, 19, 2013), CalPERS is suspending the use of all Additional Appointments until the California Department of Human Resources (CalHR) and the State Personnel Board (SPB) can provide further clarification on this policy that has been in place under six governors' administrations since 1979. CalPERS intends to get back to the business of serving California's public employees.
"We used Additional Appointments at a critical time in our organization only after first using a number of other different tools available to us. Our initial estimate is that by using Additional Appointments CalPERS saved up to approximately $1.6 million by not having to hire external consultants from the private sector and by not hiring new employees who would need significant training and would most likely need to be laid off following the project.
"Although CalPERS always planned to phase out the use of these positions by the end of the fiscal year in June, CalPERS is suspending their use now because we value most the trust of our members, stakeholders and the public. The suspension today will affect primarily the speed of processing retirement applications and service credit purchases. We hope that our actions today will allow everyone to return their focus to the more important issues of job creation, health care and retirement security while CalHR and SPB resolve this issue."
CalPERS is the largest public pension fund in the U.S. with approximately $250 billion in assets. The retirement system administers retirement benefits for more than 1.6 million current and retired California State, public school, and local public agency employees and their families on behalf of more than 3,000 public employers in the state, and health benefits for 1.3 million enrollees. For more information about CalPERS, visit www.calpers.ca.gov