Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Retired Annuitants topic
No spam. Unsubscribe anytime.
CalPERS reiterates limits on retired annuitants; substitutes may be used only for limited durations
Summary
CalPERS published a circular letter clarifying retired annuitants may be used as substitutes in limited circumstances (emergency, backlog prevention, special projects); the agency will request documentation in compliance reviews to justify RA use and is drafting guidance on interim vacancies.
CalPERS restated rules governing retired annuitants (RAs), describing acceptable uses and what documents the agency may request during compliance reviews.
Heather Porter, assistant division chief in CalPERS’ Employer Account Management Division, said a circular letter issued Dec. 18, 2024, clarifies that retired annuitants may serve as substitutes when there is a limited, demonstrable need — for example to prevent a backlog of work, to respond during a state of emergency, or for a short special project. Porter warned that RAs are not intended as a permanent staffing solution and employers should exhaust nonretired substitute pools first.
Why it matters: Misuse of retired annuitants can violate statutory limits that prevent simultaneous pension receipt and covered employment except under specified exceptions; CalPERS compliance reviews will examine hiring documentation and evidence of active recruitment for nonretiree replacements.
Porter said CalPERS may ask for documentation of the need for the RA, evidence of active recruitment for nonretiree candidates, and hiring records; the agency will prioritize outreach where retired annuitant usage appears to substitute for regular staff or where an employer’s substitute pool consists largely of RAs. She also said CalPERS is drafting a circular letter on interim vacant appointments under Government Code 21221(h) (which does not apply to schools and state agencies) to prevent confusion between that authority and the extra‑help/substitute rules.
Several attendees asked about examples — stipends, coaching, police/fire/academy instructors and crossing guards — and Porter answered that stipends paid episodically often are not reported as post‑retirement employment, that special‑project or episodic assignments (for example, annual evaluations or limited testing in police or EMT academies) may be acceptable, and that she would follow up on crossing‑guard reporting because statutory treatment changed with PEPRA.
Ending: CalPERS urged employers to document the necessity for RAs, maintain active recruitment efforts for nonretiree substitutes, and to consult CalPERS guidance and the Dec. 18 circular letter when using retired annuitants.
