On Monday, April 18, 2022, the Pension and Health Benefits Committee of the CalPERS Board of Administration voted to move forward with adopting a regulation governing the employment of retired persons, or “retired annuitants.” Retired annuitants are CalPERS retirees who, without formally applying for reinstatement, return to work with a CalPERS-covered employer in a designated position. The draft regulation clarifies existing language in the Government Code pertaining to retired annuitants.
Under the proposed regulation, retired annuitants are eligible for appointments to:
- A position involving work that is substantially different from work that the retired person performed after retirement in another position for the same CalPERS-covered employer; or
- A position with a different CalPERS-covered employer from any previous CalPERS-covered employer the retired person performed work for after retirement.
The draft regulation limits these appointments to 24 consecutive months, with up to two additional 12-month extensions, subject to certain conditions. CalPERS data indicates that this should cover most limited duration appointments. The proposed regulation also provides for additional extensions beyond 48 months upon application and a specified showing to the CalPERS Board of Administration, either in 12-month intervals or for an unlimited amount of time when the appointment does not exceed 120 hours per fiscal year.
The draft regulation also extends the 24 consecutive month limit to appointments that temporarily upgrade an employee’s compensation because they are required to work in a higher position or classification. Such appointments must immediately follow a permanent appointment for the same upgraded position or classification. CalPERS’ data indicates that this should cover almost all temporary upgrade appointments.
Upon its effective date, the draft regulation would restart the clock on existing appointments. It requires employers to notify CalPERS of any changes to appointment end dates.
The draft language is now subject to a 45-day public comment period. The Board is expected to make at least one likely non-substantive change to allow for exceptions to the regulation’s time periods under certain circumstances. CalPERS staff anticipate that the final version will be brought back to the Board of Administration for an additional vote in September 2022.
If you have questions about the CalPERS rules regarding retired annuitants, reach out to your RPLG attorney.