The State Worker: Judge: Federal prison receiver can get California state pension

jortiz@sacbee.comSeptember 11, 2013 

A Sacramento judge has ruled that California's Prisons Receiver J. Clark Kelso qualifies for a state pension, even though his position as the penal system's medical overseer was established by federal appointment.

The decision by Judge Michael Kenny sides with CalPERS, which said it had vetted an unusual deal between the federal judge that appointed Kelso and the state Administrative Office of the Courts that allowed him to stay in the state pension system. In essence, Kelso is working as a state-courts employee on loan to the federally established California Prison Healthcare Receivership Corp. charged with overseeing the medical care of inmates.

Before Kelso took the receiver job, he held several leadership positions in state government, with years of contributions built up in his CalPERS pension account.

Daniel Francis, a retired state employee, sued CalPERS, arguing that Kelso was really a federal employee and that payments to his state pension account amounted to a gift of public funds.

Kenny said that Francis failed to prove that CalPERS' determination of Kelso's employment status was wrong.

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