Tuesday, August 7, 2012

CalPERS STEALS FROM THE DISABLED AND GIVES TO THEIR SPOUSE

CalPERS has decided that disability pensions are community property, which requires that they be divided 50 / 50 with an ex-spouse. This is contrary to both statute and case law, which hold that disability pensions are income replacement, not community property.

Disability pensions for California state employees are not all that generous. My client had a disability income of $3000 a month for getting an on the job illness (stroke) brought on by the stress of his law enforcement job. Even though his ex-wife has agreed that he should get all of his CalPERS disability benefits, CalPERS refuses to obey the Superior Court Order.

Please understand that the wife can still get spousal and child support by using the disability income in the support calculations.

So why does a normally well run state agency decide to disobey state law? CalPERS, like all state agencies, depends on their attorneys to give them correct advice. Sometimes attorneys give advice based on politics rather than on the law. Sometimes attorneys think it is fun to see what they can get other people to do. Sometimes attorneys are lazy. In this case, I think the community property section of CalPERS was empire building.

I am not worried about my client, at least long term. After all, he has an excellent attorney. %>) But CalPERS has written ALL of its QDROs to treat disability income as community property. Worse, the CalPERS appeal division is so overwhelmed that it can not even send out hearing notices correctly. Appeals take a LONG time and then face an uphill court battle as an appeal can only be brought on a writ of mandamus.

Meanwhile, disabled people sign away their own money every day..

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