Alert from CalPERS on Retired Annuitants

On March 12, 2020 Governor Newsom signed Executive Order N-25-20 declaring a statewide emergency based on the COVID-19 pandemic. Executive Order N-25-20 (“EO”) No. 7 specifically lifted restrictions on retired annuitant workers to ensure adequate state staffing during the emergency.

There was a question as to whether EO No. 7 applied to local agencies as well. CalPERS answered that question yesterday with Circular Letter 200-015-20 (found here) stating that EO No. 7 applies to retired annuitants with all CalPERS employers. Specifically, EO No. 7:
  • Suspends the requirement that there be a 180-day break in service requirement under Government Code section 7522.56(f) to hire a retired annuitant. Also, under Title 2 CCR 586.2(c), the declaration of emergency exempts retired annuitants from the 60 day separation of service requirement before appointment. EO No. 7 does not suspend the prohibition on predetermined agreements between employers and soon to be retirees who are not retirement age to return to work upon retirement.
  • Suspends the 960 hours limitation per fiscal year during the state of emergency. Any hours worked by the retired annuitant during the state of emergency to ensure adequate staffing will not be counted toward the 960 hour limit.
Per the Circular Letter, CalPERS still requires agencies to continue to comply with the remaining retired annuitant employment restrictions including: compensation limits and prohibition on additional benefits. Agencies must also notify CalPERS of any retired annuitant appointed per these waivers and CalPERS will continue to monitor the work hours performed by retired annuitants.