The California Public Employees’ Retirement System (CalPERS) set forth post-retirement employment requirements applicable to all retirees who are employed by a CalPERS employer on or after January 1,2013. Extra-Help Retired Annuitants are subject to the requirements of California Public Employees’ Pension Reform Act (PEPRA), which added sections 7522.56 and 7522.57 to the Government Code effective January 1, 2013. To ensure compliance with this law, the City is creating a new classification for Extra-Help Retired Annuitant.
When the City hires an Extra- Help Retired Annuitant to perform extra help work, it must meet the following requirements:
1. 180-Day Wait Period – The City can only hire an Extra-Help Retired Annuitant after he or she has been retired 180 days from his or her retirement date. There are some exceptions for work that is critical and approved by City Council, or work performed by a retired firefighter or police officer.
2. Limited Duration – The City must ensure that the individuals have the skills to perform work for a limited duration and are needed to prevent an emergency or to prevent stoppage of public business or to supplement work of regular staff (eliminate backlog, special project, work in excess of what regular staff can do). While there is no limitation on how many years the person can work for the employer, as soon as the work/situation for which the City hired the Extra-Help Retired Annuitant is completed, the employment must end.
3. Compensation – The hourly rate for the Extra-Help Retired Annuitant cannot be less than the minimum or exceed the maximum paid to other employees performing
comparable duties. Extra-Help Retired Annuitants cannot receive other benefits or
compensation in addition to the hourly rate of pay.
4. 960-Hour Limit – The hours worked by the Extra-Help Retired Annuitant cannot exceed
960 in a fiscal year for employment with all CalPERS employers combined. No exceptions.
5. Unemployment Insurance Payments – The City cannot hire an Extra-Help Retired
Annuitant that has received unemployment insurance payments from a CalPERS employer within 12 months of appointment with the City. As soon as the Extra-Help Retired Annuitant accepts employment with the City, he or she must certify in writing compliance with this requirement.
When the City hires an Extra- Help Retired Annuitant to perform extra help work, it must meet the following requirements:
The City employs such retired individuals and has complied with these requirements, however, a recent publication from CalPERS has clearly stated that these Extra-Help Retired Annuitants should be placed in a classification designated only for Extra-Help Retired Annuitants, and not in the same classification as their regular employee counterparts.
The creation of this unique and separate classification will ensure that Extra-Help Retired Annuitants are appropriately classified, will assist with more efficient tracking and monitoring of their status to work in a limited, temporary capacity, and allow the City to fully comply with the provisions required by CalPERS to safeguard that there is no impact to an Extra-Help Retired Annuitant’s retirement benefits.