Earlier today, Gov. Arnold Schwarzenegger signed an executive order
providing a “golden handshake” for CSU faculty.

“This is a tremendous victory for CFA,” stated CFA President John Travis.
“This was a successful collaborative effort between CFA and the CSU
administration, and this benefit recognizes the outstanding service of CSU
faculty who have provided a long-term commitment to our students and are
considering retirement.”

Under existing law, the provisions of the executive order cannot be
implemented until after a 30-day period in which the Joint Legislative
Budget Committee can review the executive order. However, CFA is working
collaboratively with the CSU administration seeking a waiver of this 30-day
provision. If a waiver is granted, the executive order will be immediately
implemented.

The CSU faculty “golden handshake,” a result of recent contract negotiations
between CFA and the CSU administration, provides two years additional
service credit for lecturers, tenure-track and tenure faculty who retire by
July 28, 2004.

Under the terms of the CFA-CSU agreement, faculty who receive the two years
additional service credit are not eligible to participate in the Faculty
Early Retirement Program (FERP). Additionally, a campus President may limit
the benefit’s availability to 25 percent of the tenure-track faculty in any
department if the President determines that additional participation would
adversely impact the department’s ability to meet its enrollment demand. In
such circumstances, the faculty members with the most seniority will have
the first opportunity to retire under the “golden handshake.”

Schwarzenegger signed the measure after weeks of heavy lobbying by both CFA
and CSU Chancellor’s Office advocates.