Date: June 5, 1996 Code: AD 96-12
To: Vice Presidents for Administration From: George A. Pardon Accounting Director Business and Finance
Subject: Final Status - 1993/94 Early Retirement Program
Coded Letter AD 95-15 reported the status of the subject program as of November 30, 1995 when we had received PERS invoices for 612 retirees. Since that time we have received the balance of the invoices for a total of 929 retirees with an annuity cost of $17,863,223. The attached table displays the final cost to each campus for annuities, interest and administrative charges. It also reports totals paid and the balances remaining to be paid.
The administrative cost of $63,279 was prorated on the basis of the number of participants from each campus. Interest costs of $865,736 were prorated on the basis of total annuity cost by campus. As explained in AD 95-15, the exceptions to this proration were those campuses which had paid the entire estimated cost of their annuities prior to June 26, 1995.
Copies of the final PERS invoices are being provided as an enclosure to the campus Budget Officer's copy of this memo. At this time we consider the program to have been completed and that no further invoices will be received from PERS. Although final payment of the balance shown on the attached table is not due until June 30, 1998, you are urged to liquidate this obligation as quickly as possible.
In accordance with the CSU commitment to GAAP reporting, funds will not be deallocated as payment of the outstanding balance. This will be accomplished by a Plan of Financial Adjustment (PFA) transaction. Requests for a PFA should be directed to Mr. Howard S. Hicks in this office in memo format.
If you or your staff have any questions regarding this subject, please contact Mr. Howard S. Hicks in the Accounting Department at (310) 985-2730.
GAP:HSH:js AD 96-12
Distribution: Presidents (w/ Attachments) Financial Managers Accounting Officers Budget Officers Chancellor's Office