CalPERS Launches Phone Tip Line to Monitor and Prevent Disability Fraud.

SACRAMENTO, Calif. -- The California Public Employees' Retirement System (CalPERS) today launched a telephone hotline aimed at deterring abuse in the System's disability retirement program.

The "Disability Fraud Tip Line" is a voice mailbox for self-identified or anonymous callers to report CalPERS members suspected of misrepresenting their disabilities to collect retirement benefits.

"This tip line will help us prevent fraud in our disability program," said CalPERS Assistant Executive Officer Kathie Vaughn. "This, combined with legislation we are sponsoring, will beef up our ability to investigate fraud and help protect the fund against wrongdoing."

Callers to CalPERS Customer Contact Center's toll free number at (888) CalPERS (225-7377) can leave their name and phone number for a return call within two business days. Anonymous callers are asked to leave as much information as possible -- including the name of the suspected member, the spelling of the name, and the reason for their suspicion. All information will remain confidential. Callers will not be contacted unless they specifically ask to be called for further details.

Tip line information will be forwarded to CalPERS investigators and program staff for evaluation and resolution.

Last month, in response to media reports regarding alleged retirement disability abuse, the CalPERS Board directed its staff to pursue legislation that will:

--Improve the definition of fraud in the current law and establish civil and criminal penalties for committing such fraud, including restitution;

--Provide CalPERS the authority to require a disabled member who has achieved the minimum age of retirement to undergo a medical exam to determine his or her current level of disability; and

--Allow CalPERS investigators greater access to employment information from other state agencies.

CalPERS is the nation's largest public pension fund, with assets totaling more than $180 billion. The System provides retirement and health benefits to 1.4 million State, school, and local public agency employees, retirees, and their families. For further information about CalPERS, visit www.calpers.ca.gov.