CalPERS proposes new regulations for part-time retiree work; public comment closes Aug. 1

The California Public Employees' Retirement System (CalPERS) is accepting public comments on regulations that would limit the type of work retirees can do for public agencies. Known as “retired annuitant” positions, these appointments allow CalPERS retirees to work part-time at public agencies without losing their pensions.

The tentative regulations are intended to provide clarity on the phrase “limited duration,” which governs the scope and length of retired annuitant work. However, the proposed language is overly restrictive. While a clear definition would be beneficial, cities need more flexibility — not less — especially in a time when hiring has been especially challenging.

How long can retirees work and what kind of work can they do under these regulations?

The proposed regulations would limit the appointment of a retired annuitant to an initial period of two years. This appointment could be extended by an additional year, up to two times, for a total of four years if certain requirements are met. For current retired annuitants, the first appointment would start when the regulations go into effect.

Under the proposed regulation, retired annuitants are eligible for appointments to:

• A position involving work that is substantially different from work that the retiree performed after retirement in another position for the same CalPERS-covered employer.
• A position with a different CalPERS-covered employer from any previous CalPERS-covered employer the retiree performed work for after retirement.
  

The preliminary regulations also allow employers to further extend appointments for retired annuitants beyond four years in rare circumstances and with restrictions. These additional extensions could be unlimited — not to exceed 120 hours per fiscal year — or for 12 months. An unlimited extension could only be requested once.

However, even with the extensions, there may not be enough flexibility — especially when it comes to hard-to-fill positions, seasonal jobs, and areas with limited labor pools.

How can I submit a comment?

Cal Cities will submit a comment letter on the regulations. If you would like to provide feedback to inform the letter or if you have any questions about the regulations, please contact Legislative Affairs Lobbyist Johnnie Pina.

Additionally, any interested person or their authorized representative may submit written comments relevant to the proposed regulatory action by 11:59 p.m. on Aug. 1, 2022. Comments may be submitted by email to Regulation_Coordinator@calpers.ca.gov.

Those that wish to provide comments should refer to the  notice of proposed rulemaking,  initial statement of reasons, CalPERS staff analysis, and text of the proposed regulation.