1206 - Retired Annuitants

Category

Appointments

Audience List

• Personnel Officers
• Personnel Transactions Supervisors

Synopsis

This policy describes

• The use of Retired Annuitants (RA).
• The laws and rules pertaining to RAs.
• The procedures for requesting an exception to the RA 180 day waiting period.
• The interaction between receipt of unemployment insurance and eligibility for appointment as a RA.
• Required adherence to a bona fide separation.

Introduction

RAs are persons retired from a state agency who are appointed to perform mission critical work that is temporary in nature.  Approval must be obtained from CalHR before employing a RA under certain circumstances.

Statement

Appointing authorities are authorized to hire RAs, after the RA has been retired for a period of 180 days, during an emergency to prevent the stoppage of public business or  because the retired person has specialized skills needed in performing work of a limited duration. RAs are to be temporary in nature. Examples of the proper use of a RA are mentoring new employees, transferring knowledge and providing expertise to other employees, and completing a time limited project. RAs cannot be appointed to a budgeted position on a permanent basis; instead, RAs should be appointed in the temporary help blanket.

The RA must be appointed to a classification that meets one of the following conditions:

• The class that the person had permanent or probationary status in at the time of retirement.
• A Career Executive Assignment (CEA) appointment if held at the time of retirement.
• Another class to which the person could have been permanently transferred, reinstated or demoted at the time of retirement.

NOTE: A RA shall only be appointed to a CEA position if the CEA position has been established by the SPB/CalHR and the RA is to perform the approved duties of the CEA position.  Placement can be made to “blanket funds” but the budgeted CEA position cannot be filled while the RA is performing the duties of the established CEA position.

Appointments shall not exceed a maximum of 960 hours in any fiscal year (July-June) without reinstatement, loss or interruption of benefits.

Departments are reminded to review and ensure compliance with all applicable statutes and rules on the appointment of RAs, including but not limited to those listed below under Authorities. 

180-Day Waiting Period

A retired person shall not be eligible for employment as an RA for a period of 180 calendar days after the date of retirement unless the appointment is necessary to fill a critically needed function. The 180-day waiting period does not apply to:

• A retired peace officer or firefighter hired to perform functions regularly performed by a peace officer or firefighter.
• A retiree who takes office as a judge of a court of record or a retiree under the Judges’ Retirement System I/II who is appointed as a retired judge.

Definition of Critical Need Justifying Waiver of the 180-Day Waiting Period - An immediate need for a particular skill set that only the RA can provide to complete a function for the department to meet one of the requirements outlined below and that cannot be met by a current state employee:

• Legislative Mandate
• Court Ordered Mandate
• Health and Safety Emergencies
• Fiscal Impact – Loss of Funding
• Any Disruption in Normal Business that may Result in Failure of Business Operations

Departments are reminded to review classification specifications and bargaining unit agreements for additional information.

Unemployment Insurance

A retired person cannot be appointed as an RA if, during the 12-month period prior to the appointment, they received unemployment insurance based on state employment. This prohibition covers all state departments and other public employers that provide retirement benefits under CalPERS.

The law does not apply to the following situations:

• The first time an employee is appointed as a state retired annuitant (it only applies to subsequent state annuitant hires under Section 21224).
• The unemployment insurance was received as the result of employment with a private employer (such as a registry or a retailer).
• The unemployment insurance was received as the result of employment with a public employer who does not provide retirement benefits under CalPERS.

This prohibition is intended to prevent retired state employees from collecting three public stipends: a CalPERS retirement allowance, state salary, and unemployment insurance.

Additionally, persons who disability retired are prohibited from appointments to positions that include duties or activities they were previously restricted from performing at the time of retirement, unless an exception applies under the Public Employees Retirement Law.

Bona Fide Separation in Service Requirement

For purposes of working for a CalPERS-covered employer after retirement, pursuant to Article 8, of Chapter 12, Part 3, Division 5 of Title 2 of the Government Code; a retired person who has not attained the normal retirement age shall have a bona fide separation in service of 60 calendar days, before working after retirement.

A bona fide separation is defined as the following:

1. No predetermined agreement between the employer and the employee prior to retirement to return to work for the employer after retirement; and
2. A separation in service of at least 60 calendar days between the date of retirement and the first day of work for the employer as a retired annuitant. The 60 days shall commence on the day after retirement.   

Any retired person employed in violation of this regulation shall be subject to the consequences provided in Government Code section 21220. In order to verify if a retiree is under this requirement employers will need to ask the candidate or contact CalPERS.

Government Code section 8558 subdivision (a) (2), provides an exemption to a bona fide separation under a declared state of emergency.

Application

To obtain approval for an exception to the RA 180 day waiting period, submit a request to CalHR’s Personnel Management Division (PMD).  Your request must include:

• A completed CalHR 625 form
• A justification outlining the critical need for the hire which includes:
  • An in-depth explanation of why the RA being hired is the only person that can provide the expertise needed
  • A detailed long-term plan of how this need will be resolved or met in the future
  • A statement on whether or not the Governor’s Office is aware of the request
• An organizational chart reflecting the position/function
• Duty statement for the proposed RA
• Proof of the RA’s retirement date (PIMS History or NOPA)
• Send the request to PMD@calhr.ca.gov and copy your department’s assigned PMD Analyst.

For RA hires made subsequent to the 180-day waiting period:

Departments should maintain documentation for audit purposes indicating whether the RA is necessary to prevent the stoppage of public business during an emergency, or possesses specialized skills needed to complete work of a limited duration.  In addition departments should provide RAs who have previously been appointed as a RA with the following forms, which must be completed by the employee. Keep both completed forms in the employee’s personnel file for audit purposes.

• CalHR Form 715 self-certification that no unemployment insurance benefits have been received by the RA:
  • If a person applies for reemployment as a retired annuitant with the state, and self certifies that he/she received unemployment insurance based on prior state employment as a retired annuitant, this person is ineligible for employment with the state for 12 months after the date of the last unemployment insurance payment.
  • If a person already has been appointed as a retired annuitant with the state on or after January 1, 2005, and this employee certifies that he/she received unemployment insurance from a CalPERS-covered employer prior to the appointment (or EDD later verifies that the person received unemployment insurance), you must separate this employee at the end of the pay period; this person will be ineligible to return to work with the state for 12 months.
• EDD Form 1181 authorizing EDD to release to state employers the retired annuitant’s records regarding unemployment insurance payments.
  • EDD anticipates it will take 10 to 30 days to process each Form DE 1181 and return the information to the inquiring department. While the EDD form is being processed, your department may hire a retired annuitant who certifies on CalHR Form 715 that he/she has not received unemployment insurance payments.

Authorities

• Bargaining Contracts - MOUs
• CalPERS Circular Letter number 200-265-05
• Government Code section 18529
• Government Code section 18552
• Government Code section 19058
• Government Code section 19133
• Government Code section 19144
• Government Code section 21224
• Government Code section 7522.56(f)
• Government Code sections 19100.5 - 19101
• California Public Employees' Retirement Law
• California Code of Regulations, title 2, section 586.2
• Government Code section 8558
• Government Code sections 21220-21220.5
• Internal Revenue Code 401(a)

Resources

Forms

• CalHR 715: Retired Annuitant Self Certification Form
• EDD DE 1181: Authorization for Release Unemployment Insurance Records for Retired Annuitant
• STD 625: Classification and/or Certification Action Request Form

PML

• PML 2005-010: PML 2005-010 - 3/11/2005 - Retired Annuitant Hiring Process
• PML 2013-001: PML 2013-001 - 1/8/2013 - Retired Annuitants Hiring Exception Procedure
• PML 2013-023: PML 2013-023 - 7/16/2013 - Student Assistants and Retired Annuitants

Related Policies

• 1202: Intermittent Employees

Web Pages

• Employment After Retirement: A Guide to CalPERS Employment After Retirement

Authorized By

Melissa Russell
Chief
Personnel Management Division

Contact Person

Personnel Management Division
Personnel Program Consultant , Personnel Management Division
Phone: 916-909-3295
Email: pmd@calhr.ca.gov

Superseded Policies

History

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