CalPERS starts classic‑benefit validation and will place holds on uncertain cases

CalPERS described a new member validation process to confirm eligibility for legacy (“classic”) retirement formulas and described employer responsibilities.

Veronica Silvigill of CalPERS said an internal audit found some members had been enrolled in classic benefit formulas but were not entitled to them. To address the issue, CalPERS will add a hold to member profiles when a new classic enrollment lacks corroborating system evidence of reciprocity or other supporting documentation. The hold prevents the member from refunding contributions or retiring until CalPERS validates the classic enrollment.

Why it matters: CalPERS said it previously relied on members’ self‑certification forms and that errors were identified during audit; the new process aims to prevent incorrect formula assignments that affect benefits. Employers were asked to encourage members to provide supporting documentation when they submit self‑reciprocal forms.

Silvigill said CalPERS will give members up to one year to establish reciprocity, and if no documentation is provided CalPERS will issue a verification letter and ask for confirmation from the reciprocal system or other evidence such as a recent reciprocal‑system statement. CalPERS said it has identified roughly 1,500 members in its initial validation population; the agency will prioritize cases tied to imminent retirements, death cases or refund requests and will make corrections where needed.

Employers’ role: CalPERS recommended that employers ask members for proof of reciprocity when they submit self‑certification forms to reduce future corrections; employers should refer members with questions to CalPERS using the membership reporting inbox.

Ending: CalPERS said it will validate classic‑benefit claims, remove holds after validation and make any necessary corrections; employers should be prepared for some cases to require adjustments after CalPERS’ review.