7 Retired Annuitant Rules
There are two types of retired annuitant
employment: “extra help” and interim (or acting)
“vacant position” employment.
Extra Help Positions
The retired annuitant employment restrictions for
extra help positions are authorized by Government
Code sections 7522.56, 21224, 21227, and 21229. All
CalPERS-covered employers are able to use retirees
to fill in for extra help positions. However, your
employment must meet the following restrictions:
• Limited-Duration Work
You have skills needed to perform work of limited
duration or your employment is needed during an
emergency (such as floods, earthquakes, etc.) to
prevent stoppage of public business. While these
workloads may last more than one fiscal year, the
employment should terminate when the limited-
duration work you were hired to perform is
completed. Examples of limited duration work are
work to eliminate a backlog, work on a special
project, and work that is in excess of what regular
staff can do. You cannot be employed in any
regular staff position such as “seasonal,”
“permanent intermittent,” “exempt from civil
service,” “exempt from membership,” “TAU,” or
any other “temporary” position other than a retired
annuitant position.
• Compensation
The hourly pay rate you receive cannot be less
than the minimum or exceed the maximum paid
to other employees performing comparable duties
as listed in the employer’s publicly available pay
schedule. Also, you cannot receive any benefit,
incentive, compensation in lieu of benefits, or other
form of compensation in addition to the hourly pay
rate. For example, longevity compensation, sick
leave, or vacation benefits cannot be provided to a
retired annuitant. The only exception would be if
the employee is being reimbursed dollar for dollar
for job-related expenses. Items such as housing or
commuting are not job-related expenses.
• 960-Hour Limit
The hours you work cannot exceed 960 hours in a
fiscal year (July 1 through June 30) for employment
with all CalPERS employers combined. There are
no exceptions to this limit. Your hours will reset
each July 1, and you can work another 960 hours
for the new fiscal year. Your employer must enroll
and report your hours to CalPERS, per Government
Code section 21220. Your total employer-reported
retired annuitant hours from all employers can be
found in your myCalPERS account.
California State University (CSU) academic
staff retirees can work as retired annuitant
academic staff for CSU employers as
authorized by Government Code sections
7522.56 and 21227. However, the hours
worked for all CSU employers cannot exceed
960 hours in a fiscal year or 50% of the
hours employed during the last fiscal year
prior to retirement, whichever is less.
• Unemployment Insurance Payments
You cannot be appointed as a retired annuitant
if you received unemployment insurance
payments for prior retired annuitant work
for any CalPERS employer within 12 months
prior to your appointment date. Upon accepting
employment, you must certify in writing to the
employer that you comply with this requirement.
Review additional information in the section
“Unemployment Insurance Payments” on page 9.
8 Vacant Positions
A CalPERS-contracted public agency may appoint
you to an interim position by the governing body
of an employer, as authorized by Government Code
sections 7522.56 and 21221(h). The employment
must meet all the requirements listed on page 7 for
extra help positions and the following additional
requirements below. Examples of these positions
include city manager, police chief, fire chief,
individual department head, director, CEO, etc.
• Active Recruitment
Before you are hired, the employer must have
in place an active recruitment for a permanent
replacement for the vacant position.
• Limited-Duration Work
You can be hired only as an interim or acting
appointment during the period of recruitment;
you cannot work in a permanent capacity or for
an indefinite period of time.
• Single Appointment
You can be appointed only once to the vacant
position. If your contracted term ends and a
replacement has not been found, you must
vacate the position. If you continue after your
contracted term expires, this is considered a
second appointment and will result in unlawful
employment.
• Compensation
Your hourly pay rate cannot be less than the
minimum or exceed the maximum for the
vacant position as listed on the employer’s
publicly available pay schedule. You cannot
receive any benefit, incentive, compensation in
lieu of benefits, or other form of compensation
in addition to the hourly pay rate.
Eligibility Requirements for
Retired Annuitants
In addition to the requirements on the previous
pages, all retirees must meet both of the following
two requirements to be eligible to work for a
CalPERS employer:
1. Bona Fide Separation in Service Requirement
You cannot be employed as a retired annuitant if
you are younger than the “normal retirement age”
on your retirement date, unless both of the following
conditions are met:
• There can be no verbal or written agreement to
return to work as a retired annuitant between you
and any CalPERS employer before you retire.
• There is a termination of employment (separation
in service) for 60 days between your retirement
date and the date your limited-duration
employment as a retired annuitant will begin.
Normal retirement age is the oldest age
listed in your retirement benefit formula(s)
between all previous CalPERS employment.
To find this age, log in to your myCalPERS
account at my.calpers.ca.gov.
All retirees who are under normal retirement age
at retirement must meet the bona fide separation
in service requirement even if an exception to the
180-day wait period applies. These two requirements
may be served concurrently. The only exception to
the 60-day wait period restriction is for employment
due to the specific emergency conditions as defined
in Government Code section 8558. A predetermined
agreement can never exist if you are under your
normal retirement age. This bona fide separation
requirement is in California retirement law and
regulations to comply with Internal Revenue Code
tax regulations.
Retired Annuitant Rules (continued)
9 2. 180-Day Wait Period Requirement
You cannot be employed as a retired annuitant for a
period of 180 days after your retirement date unless
you qualify for one of the following exceptions. The
180-day wait period begins on your retirement date.
Exceptions
• Before you begin work, your employer must
certify the nature of the employment and that
the appointment is necessary to fill a critically
needed position sooner than 180 days. The
appointment must be approved by the employer’s
governing body, in a public meeting, and must
be approved as an action item, rather than on
a consent calendar.
• You will participate in the CSU Faculty Early
Retirement Program (FERP) pursuant to a
collective bargaining agreement with CSU that
existed prior to January 1, 2013, or has been
included in subsequent agreements.
• You are a retired firefighter or retired public
safety officer as defined in Government Code
section 3301 (peace officer) who will perform
firefighter or peace officer retired annuitant work.
• You are a CalSTRS retiree who is subject to
sections 24212, 24214.5, or 26812 of the
Education Code. Call CalSTRS at (800) 228-5453
for more information.
If you receive a golden handshake or any other
retirement or separation incentive, you must wait
180 days before returning to work and you are not
eligible for any of the 180-day wait period exceptions.
State Employer Civil Service
Eligibility Requirement
Retired annuitant employment with a state
agency is limited to retirees who have civil
service eligibility from previous state agency
employment or who qualify for appointment under
an applicable civil service employment list. Visit
the California Department of Human Resources
(CalHR) website at www.calhr.ca.gov for more
information. Retired State of California employees
can apply for retired annuitant positions via the
Boomerang website at boomerang.ca.gov.
Unemployment Insurance Payments
California law prohibits appointment of a retired
annuitant by a CalPERS employer if, during the
12-month period before an appointment, you
received unemployment insurance compensation
for prior retired annuitant employment with any
CalPERS employer. Upon accepting employment,
you must certify in writing to the employer
that you comply with this requirement.
If you are working as a retired annuitant and it is
discovered that during the previous 12 months you
were paid unemployment insurance compensation
based on prior retired annuitant employment with
any CalPERS employer, your employment must
be terminated on the last day of the current pay
period. You will not be eligible for appointment as
a retired annuitant with any CalPERS employer for
12 months following the termination date of the
current employment. Violation of this unemployment
insurance compensation restriction does not result
in mandatory reinstatement from retirement.
Retired Annuitant Rules (continued)
10 Exceptions to Retired Annuitant
Requirements
Elected or Appointed Offices
As authorized by Government Code section 21231
(previously Government Code sections 21221(d)
and 21222), a CalPERS retiree may serve in an
elected or appointed office while retired. However,
if all or part of your retirement allowance is based
on service credit in that office, the portion of the
retirement allowance based on that service credit
is suspended during your time in office. The PERL
requires your employer to immediately inform
CalPERS of the appointment of any CalPERS
retiree into an elective or appointed office. To
notify CalPERS the employer must complete the
Elective Officer Retiree Certification Form and send
to [email protected]
immediately upon you taking office. When you leave
office, your allowance is unsuspended prospectively.
If you wish to elect membership to earn additional
CalPERS service credit for your time in the elected or
appointed office and that office is subject to CalPERS
membership, you must reinstate from retirement.
An elected or appointed officer, who has elected
membership for their current term, may not retire
mid-term and continue to serve in the elected or
appointed position. You must separate from this
service prior to retiring. An elected or appointed
officer may separate prior to being re-elected
and then begin their next term after retirement.
However, you need a Bona Fide Separation from
service. For more information on Bona Fide
Separations, review the section titled “Bona Fide
Separation in Service Requirement” on page 8.
Special State Appointments
Part-Time Member of State Board or Commission –
CalPERS Retirees and Non-CalPERS Retirees
You can serve without reinstatement from retirement
as a salaried part-time member of a state board
or commission, where part time is defined as
an appointment with a salary of no more than
$60,000 annually, which will be increased in
any fiscal year in which a general salary increase
is provided for state employees. The amount
of the increase cannot exceed the percentage
of the general salary increases provided for state
employees during that fiscal year. You acquire
no benefits, service credit, or retirement rights
from this employment.
Full-Time Member of State Board or Commission –
CalPERS Retirees
You can serve without reinstatement from
retirement as a non-salaried full-time member
of a state board or commission. You may receive
only per diem authorized to all members of
the board or commission. You do not earn any
service credit or benefits in CalPERS or make
any CalPERS contributions. If you accept the
salary, you must reinstate from retirement.
Full-Time Member of State Board or Commission –
Non-CalPERS Retirees
If you receive retirement from a public retirement
system other than CalPERS, you can serve as a
non-salaried full-time member of a state board
or commission and continue to receive your
retirement allowance in addition to any per
diem authorized to all members of the board or
commission. If you accept the salary, you must
suspend your retirement benefit from the other
system and enroll as a new member of CalPERS.
Upon retirement (1) the pensionable compensation
earned from the service on this board or commission
will not be eligible for reciprocity with any other
retirement system or plan, and (2) you will be
entitled to future reinstatement of any suspended
benefits, including employer-provided retiree health
benefits, for which you were entitled at the time
of appointment to the board or commission.
Retired Annuitant Rules (continued)
11 Full-Time Commissioner of the State Board
of Parole Hearings or Full-Time Commissioner
of the State Board of Juvenile Hearings –
CalPERS Retirees and Non-CalPERS Retirees
If you are appointed as a full-time commissioner
of the California Board of Parole Hearings or the
California Board of Juvenile Hearings, you may
serve without reinstatement from retirement,
and without loss or interruption of benefits
provided by the retirement system. These
appointments are made by the Governor and
require confirmation by the California Senate.
Retired Annuitant Rules (continued)