My husband had to disablility retire in 2000 (not industrial). We went to CalPERS and they explained everything and told us the numbers and we chose the highest compensation years and we chose to take a $200.00 a month reduction to give me some of his retirement if he died first.
Four years later, they tell us they made a mistake and that they are reducing his retirement by $650.00 a month (one-half of what he was getting) and they want us to repay $23,000. They say he is 7 months short of having 10 years in which would give him the higher retirement. They originally figured in his last 6 months on the job when he was on medical leave, which apparently does not count toward retirement credit.
I researched on the Internet and there was a case in San Diego in 1999 where the person's retirement was being reduced and he sued for estoppel. He lost because CalPERS is a government agency.
My husband's situation is different because he has prior credit which he could have bought back in 2000 if we had known we could have and if we had known how little his monthly benefit would have been. Also, we would have chosen different years for his highest compensation if we had known those last 6 months didn't count. Also, we would not have taken a $200.00 monthly reduction to give me some of his retirement if he dies first.
After an informal appeal, they are offering to allow him to buy back his previous credit of 9 years, but they want us to pay an additional $15,000 in interest from 2000 to now. They are also reducing the amount by $200.00 because they say his final compensation is lower because of those last 6 months on medical leave.
So, we would be reduced by $200.00 a month for his lower final compensation, and we would have to pay $400.00 a month to buy back the prior service credit. When I asked why his retirement is not higher with an additional 9 years of service credit, I was told that for a disability retirement 0-10 years is the same and 10-20 years is the same, so having 9 more years makes no difference.
I think they should let us start over as if it were four years ago and make the choices we would have made at that time if we were fully informed. They had all of the information and double checked all the numbers with his employer. They admit it was their mistake. I think we should be able to chose a different final compensation time, chose not to take the reduction to leave me some of his retirement, and we should be able to buy back the additional service credit at the price it would have been in 2000.
The sad thing is that my husband would just return to work for those 7 months if he could, but he is unable to work. He has already checked with his employer to see if they could put him in some kind of position for those seven months, but they won't.
Is there a more formal appeal process? We have only been working with one of their people who fully admit it was their mistake. Any info or advice on our situation would be greatly appreciated.
I know this is long and thank you for taking the time to read it.
Four years later, they tell us they made a mistake and that they are reducing his retirement by $650.00 a month (one-half of what he was getting) and they want us to repay $23,000. They say he is 7 months short of having 10 years in which would give him the higher retirement. They originally figured in his last 6 months on the job when he was on medical leave, which apparently does not count toward retirement credit.
I researched on the Internet and there was a case in San Diego in 1999 where the person's retirement was being reduced and he sued for estoppel. He lost because CalPERS is a government agency.
My husband's situation is different because he has prior credit which he could have bought back in 2000 if we had known we could have and if we had known how little his monthly benefit would have been. Also, we would have chosen different years for his highest compensation if we had known those last 6 months didn't count. Also, we would not have taken a $200.00 monthly reduction to give me some of his retirement if he dies first.
After an informal appeal, they are offering to allow him to buy back his previous credit of 9 years, but they want us to pay an additional $15,000 in interest from 2000 to now. They are also reducing the amount by $200.00 because they say his final compensation is lower because of those last 6 months on medical leave.
So, we would be reduced by $200.00 a month for his lower final compensation, and we would have to pay $400.00 a month to buy back the prior service credit. When I asked why his retirement is not higher with an additional 9 years of service credit, I was told that for a disability retirement 0-10 years is the same and 10-20 years is the same, so having 9 more years makes no difference.
I think they should let us start over as if it were four years ago and make the choices we would have made at that time if we were fully informed. They had all of the information and double checked all the numbers with his employer. They admit it was their mistake. I think we should be able to chose a different final compensation time, chose not to take the reduction to leave me some of his retirement, and we should be able to buy back the additional service credit at the price it would have been in 2000.
The sad thing is that my husband would just return to work for those 7 months if he could, but he is unable to work. He has already checked with his employer to see if they could put him in some kind of position for those seven months, but they won't.
Is there a more formal appeal process? We have only been working with one of their people who fully admit it was their mistake. Any info or advice on our situation would be greatly appreciated.
I know this is long and thank you for taking the time to read it.