EXECUTIVE ORDER D-63-02


WHEREAS, members of the Public Employees' Retirement System and the State Teachers' Retirement System may receive two years of service credit under specified conditions if the Governor determines that it is in the best interest of the State of California to encourage the retirement of state employees; and

WHEREAS, reductions in funding for state programs and changes needed to achieve program efficiencies may result in a reduction in the number of state employee positions; and

WHEREAS, it can save costs and therefore serve the best interests of the State of California to encourage the retirement of state employees at this time by awarding two years of service credit; and

WHEREAS, these retirements will generate savings to the State offsetting any cost from awarding such credits;

NOW, THEREFORE, I, GRAY DAVIS
, Governor of the State of California, by virtue of the power and authority vested in me by the Constitution and statutes of the State of California, do hereby issue this order:

I FIND that:

  • Because of an impending curtailment of, or change in the manner of performing service, the best interests of the State would be served by encouraging the retirement of state employees; and
  • Sufficient economies could be realized to offset any cost to state agencies resulting from the award of such credit.

IT IS ORDERED that an Early Retirement Program be implemented pursuant to the provisions of Government Code Section 20901 and Education Code Section 22715.

IT IS FURTHER ORDERED all state agencies are eligible and encouraged to participate in the Early Retirement Program to the extent that they can identify job classifications or units for which overall savings can be demonstrated by participating in the program.

IT IS FURTHER ORDERED that the Early Retirement Program shall be implemented as follows:

  • Participation by employees is voluntary.
  • Agency Secretaries and other Cabinet members are responsible for ensuring that the Early Retirement Program is implemented consistent with this Executive Order and the provisions of Government Code Section 20901 and Education Code Section 22715. The Department of Finance is responsible for ensuring compliance by participating constitutional officers and other agencies that do not report to the Governor through a Cabinet member.
  • Each participating agency shall develop a Program Participation Plan, identifying the job classifications and organizational units to be eligible, the anticipated costs and savings, and any other information required by the Departments of Finance and Personnel Administration. All Program Participation Plans must comply with the provisions of Government Code Section 20901 and Education Code Section 22715.
  • Each participating agency shall submit its Program Participation Plan in a format determined by the Department of Finance for review by the appropriate Agency Secretary, who will present the plan to the Departments of Finance and Personnel Administration for approval.
  • The Department of Finance, the Public Employees' Retirement System, and the State Teachers' Retirement System will determine the time and manner of paying costs to the retirement systems.
  • The Department of Finance shall approve only those plans for which the Department of Finance determines that there will be sufficient economies to offset the costs of awarding the additional retirement credit.
  • The Early Retirement Program will be effective December 3, 2002 and will terminate February 1, 2003.

I FURTHER DIRECT that as soon as hereafter possible, this order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this order.