Date:           December 4, 1995		Code:        AD 95-15



To:		Vice Presidents for Administration


From:		George A. Pardon		
		 Accounting Director
		 Business and Finance


Subject:	State - 1993/94 Early Retirement Program


Coded Letter AD 95-03 provided instructions for calculating the estimated cost of annuities 
for participants in the 1993/94 early retirement program. It also provided for the 
deallocation of a minimum of 25% of each  campus' estimate plus any additional amounts 
the campus wished to identify.  The result of the cost estimates and initial deallocations 
is shown on the attached table.

The attachment also displays the actual annuity cost of the 612 retirements which have been 
processed by PERS as well as the estimated cost of the 313 retirements still pending.  It 
also identifies amounts deallocated to date and the estimated balance due.  The balance due 
does not include interest or administrative charges since we have not as yet been invoiced 
by PERS.  Both of these items will be addressed in a subsequent memo as the costs 
become known.

The administrative costs will be prorated on the basis of the number of participants from 
each campus. The estimated cost is $63,279.  Systemwide interest costs are unknown at 
this time.  However, no interest should be accruing since we paid the total amount of the 
contract as of June 26, 1995.  Campuses will only be charged interest through that date.  
However, those campuses which paid the entire estimated cost of their annuities prior to 
that date will only be charged interest through date of their last payment.

 GAP:SJ:js NHSF


Attachment (Check)

Distribution:

	Presidents
	Financial Managers
	Accounting Officers
	Budget Officers
	Chancellor's Office