Courtney McGourty, manager of CalPERS’ post-retirement employment team, reviewed the statutory and administrative restrictions that apply when employers hire retirees as retired annuitants (RAs).

Why it matters: rehiring retirees without complying with post-retirement rules can trigger reinstatement to active membership, require repayment of retirement benefits, and create administrative and financial consequences for members and employers.

McGourty said appointments for RAs must be temporary. She summarized the principal restrictions: a bona fide separation must exist (employees younger than their normal retirement age must observe a 60‑day break between retirement and rehire unless a governor-declared emergency applies); a 180‑day wait period applies to all retirees returning as RAs with exceptions for safety employment and when a governing body passes a public-resolution waiver that must be submitted to CalPERS before the retiree’s first day; and a 960‑hour annual cap applies across all CalPERS employers (CalPERS can temporarily lift that cap for governor-declared emergencies).

On pay, McGourty said RA hourly rates must fall within the range paid to other employees performing comparable duties (calculated by dividing the comparable monthly salary by 173.33) and must be listed on a publicly available salary schedule. RAs are not eligible for additional benefits such as health coverage or employer retirement contributions; CalPERS also requires employers to document the temporary need and to ensure RAs certify they did not receive unemployment insurance in the prior 12 months.

McGourty warned that violations can trigger reinstatement to active membership, repayment of overpaid retirement benefits, actuarial reductions of future benefits, and potential impacts to retiree health coverage. She encouraged employers to use the CalPERS RA hiring questionnaire and to submit complex questions to the working after retirement inbox.