CFA GOVERNMENTAL RELATIONS OFFICE SPECIAL REPORT
"GOLDEN HANDSHAKE" UPDATE
OCTOBER 10, 2002
TRUSTEES AND STATE MUST APPROVE GOV. DAVIS "GOLDEN HANDSHAKE"
As reported in previous CFA-GRO reports, a recently issued executive order
by Governor Gray Davis gives the CSU Board of Trustees authority to offer
an early retirement incentive to faculty and staff. Before being available
to CSU employees, however, it must be endorsed by the CSU Board of Trustees
and subject to approval by the state Department of Finance to confirm
whether the CSU would accrue sufficient budget savings from offering the
If approved by the Trustees and the Department of Finance, the "golden
handshake" would give CSU employees over the age of 55 who retire early an
additional two years of service credit, and would only be available to
employees who retire within a 60-day period between December 3, 2002 and
February 1, 2003.
CalPERS has confirmed the two years of service credit "golden handshake"
could NOT be used in conjunction with the Faculty Early Retirement Program
(FERP), since they are two distinct retirement options. Thus, the "golden
handshake" would simply be an alternative to FERP but not an additional
CFA President Susan Meisenhelder has been in contact with the Chancellor's
Office, and despite the administration's earlier claims that Davis's
executive order did not apply to the CSU, they now agree that CSU employees
would be eligible pending Trustees and Department of Finance approval.
CFA has submitted a "meet and confer" request to the CSU administration to
negotiate the Governor's "golden handshake" proposal. Additionally, the
issue is being discussed this week via a conference call of the CFA Board
of Directors and Chapter Presidents with further discussions occurring at
next week's CFA Delegate Assembly.
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