How does the State Budget Closure Program affect CalPERS service credit for retirement?
If a full time employee on a 2-day/month furlough plan works continuously during the entire fiscal year (FY), they will continue to earn a year of service credit (1.0). However, in rare situations (such as employees with appointments of less than 12 months in the FY; employees who do not work continuously during the entire FY; and employees who have a period of unpaid leave during the year), a full time employee may see a reduction in service credit as a result of the State Budget Closure Program. Part-time employees accrue a proportionately reduced amount of service credit based on their time base.
