Suit Against CalPERS to Force Payment of Interest on Withheld Funds & Benefits




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Read the First Amended Complaint here.

On October 29, 2013, Plaintiffs' filed their Opposition to CalPERS Demurrer to First Amended Complaint, Notice and Motion to Request for Judicial Noitce in Support of Opposition, and Exhibit 1-6.

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On October 29, 2013, Plaintiffs' filed their Opposition to CalPERS Demurrer to First Amended Complaint, Notice and Motion to Request for Judicial Noitce in Support of Opposition, and Exhibit 1-6.

To read Plaintiffs' Opposition Click here.

To read Plaintiffs' Request for Judicial Notice Click here.

To read Plaintiffs' Exhibits 1-6 Click here.

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On September 16, 2013, Plaintiffs filed their First Amended Complaint.

Please read the Complaint, here.

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On March 8, 2013, Plaintiffs filed a Complaint seeking interest on monies, funds, benefits or contributions that CalPERS held or controlled. The proposed class action (BC502628) is filed in Los Angeles Superior Court, and assigned to Judge Shepard Wiley, Jr. in Department 311, in the Central Civil West courthouse.

On March 21, 2013. Judge Wiley set the initial status conference for June 12, 2013.

For more information, enter BC502628 at www.lasuperiorcourt.org/civilcasesummarynet/ui/


Withheld or Unpaid Service Retirement Benefits.
 


CalPERS fails to pay interest when CalPERS withholds or underpays a service benefit and then makes an accumulated payment. Michael Gilmore's case is illustrative:

Gilmore worked as a police officer for the Beverly Hills Police Department. He retired on December 27, 2008, with approximately 31 years of CalPERS service credit. CalPERS paid Gilmore a monthly pension allowance based a reduced "final compensation" amount as it conducted an administrative review. Approximately a year after Gilmore's retirement, CalPERS determined that it had been underpaying Gilmore. CalPERS sent Gilmore a check for approximately $9,000 of accumulated underpayment. It did not pay interest.

In or about March 2011, CalPERS again recalculated his pension and determined that it has been overpaying Gilmore. CaPERS demanded that Gilmore repay $6,000. Gilmore disputed CalPERS' conclusions.

CalPERS required Gilmore repay the alleged "overpayments" over 18 months. CalPERS required Gilmore pay interest to CalPERS.

In February 2012, CalPERS switched course again and notified Gilmore that he had not been overpaid. CalPERS sent Gilmore a check for approximately $37,000 in accumulated withheld funds. CalPERS did not pay Gilmore interest.

Withheld or Unpaid Disability Retirement Benefits

CalPERS fails to pay interest when it withholds or underpays a disability benefit. Robert Seymore's case is illustrative:

Seymore worked as a police officer for the Bay Area Rapid Transit system ("BART") until about March 22, 2011. Seymore was forced to retire on industrial disability retirement due to injuries.15 months after Seymore’s retirement, CalPERS determined that it had been underpaying Seymore and paid him $2,599.52 in accumulated money. CalPERS did not pay Seymore interest.

Interest on Monies, Contributions, Funds on Deposit.

CalPERS holds funds for benefits while determining membership eligibility. Jeffrey Walter's case is illustrative:

Walter was City Attorney for the City of Cotati ("Cotati") from January 1981 to December 31, 2007. In 2001, CalPERS determined that Walter was eligible for CalPERS membership for his Cotati employment. Walter purchased 27.1 years of service credit for $469,005.25, which Walter deposited with CalPERS in July 2008.

On or about June 11, 2009, CalPERS told Walter that he was not eligible for CalPERS membership as a result of his Cotati employment. CalPERS returned the $469,005.25 on or about December 22, 2011 without interest.

Please read the Complaint, here




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