Judge Clears CalPERS Furloughs

December 21, 2009 (PLANSPONSOR.com) – A California state judge has cleared the way for employee furloughs at the California Public Employees’ Retirement System (CalPERS) to proceed.

The Associated Press reported that Governor Arnold Schwarzenegger has the legal right to order CalPERS furloughs to maintain parity with other state agencies likewise suffering worker furloughs. CalPERS had challenged the furloughs, saying its staff is paid through special funds and not state general revenue (see CalPERS Goes to Court to Escape State Worker Furloughs).

More than 20 such lawsuits have been filed since Schwarzenegger imposed three mandatory unpaid days off each month for state workers, the news report said.

The CalPERS ruling comes one day after another state court judge decided it was illegal for the governor to furlough state prison guards.

A California court likewise threw out plans to furlough Insurance Fund workers (see CA Court Strikes Down Furloughs for Insurance Fund Employees).