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CalPERS Mulls Terminating Contract with Delinquent Group

Move would reduce the pensions of 62 retirees and 135 separated employees by approximately 63%.

The California Public Employees’ Retirement System (CalPERS) board will decide this week whether to terminate its contract with the East San Gabriel Valley Human Services Consortium for being significantly delinquent in its payment of required contributions. 

The move would reduce the pensions of 62 retirees and 135 separated employees by approximately 63%.

The CalPERS Finance and Administration Committee has recommended that the contract be terminated as the consortium owes more than $400,000. CalPERS said its staff has made more than 34 telephone calls and sent multiple collection notices to the consortium to collect the outstanding amount. On January 3, CalPERS sent a final demand letter to the consortium, providing it 30 days to pay the amount owed or that termination of the contract would be recommended.

In September 2014, the East San Gabriel Valley Human Services Consortium terminated all of its employees, and closed its headquarters. It currently has an active board with no programs in place, and is only 37% funded as of June 30, 2015.

By Michael Katz