The State Senate today voted 34-1 to approve SB 697, a bill by Senator Nell Soto (D – Pomona) to crack down on fraudulent applications or receipt of CalPERS disability insurance benefits.

Senator Tom McClintock (R – Thousand Oaks) cast the lone “No” vote against SB 697, which is part of a package of pension reform bills making their way through the Legislature this year.

Existing law requires an insurer, upon written request of an authorized governmental agency, to release to the agency all relevant information deemed important to the agency relating to specific Workers' Compensation insurance fraud investigations.

Soto’s legislation would give PERS the authority to request information from Workers'  Compensation insurers for the purpose of determining eligibility for, and unlawful application or receipt of, PERS retirement benefits. SB 697 would also enable PERS investigators to request information from EDD when investigating an individual for which PERS is seeking criminal, civil, or administrative remedies in cases of fraud.

The PERS Investigation Unit is currently staffed with seven investigators who are designated as peace officers.  The primary responsibility of the Investigation Unit is to  provide investigative support for the entire PERS system, with an emphasis in the area of disability retirement.

PERS further states that their investigators are currently impeded by statutes which fail to grant them access to employment information maintained by EDD or to relevant      information maintained by workers' compensation insurers, including the State Compensation Insurance Fund.

“Rather than spending significant resources to discover information already known to these other entities, my bill simply allows PERS investigators to make efficient use of  limited resources,” Soto said. “SB 697 will provide investigators with increased access to information maintained by EDD or by Workers’ Compensation insurers and assist them in investigating benefit eligibility or the unlawful receipt of PERS disability retirement benefits.”