Proposed CalPERS regulations would place new limits on retirees who return to work for public agencies; public comment due Aug. 1

The California Public Employees' Retirement System (CalPERS) is accepting public comments on proposed regulations that would limit the type of work certain retirees can do for public agencies. Specifically, the proposed regulations seek to define the term “limited duration” for “extra help” positions.

Extra help positions are a type of “retired annuitant” appointment that allows CalPERS retirees to perform part-time, specialized work at public agencies without losing their pensions.

The League of California Cities submitted a comment letter requesting several clarifying amendments and seeking greater flexibility regarding the duration and scope of work for extra help positions.

As written, the regulations are unclear and overly restrictive. Unless modified, they will hinder cities’ ability to fill critical positions that are relied upon intermittently for public services, including first responders. Such a change is particularly alarming at a time when cities are facing significant labor disruptions and hiring challenges at all levels.

Cities are encouraged to submit written comments based on the Cal Cities sample letter. The letters must be emailed to Regulation_Coordinator@calpers.ca.gov by Aug. 1. A detailed explanation of the changes, along with links to additional resources, are available below.

What specific restrictions would these regulations create?

The proposed regulations would only apply to extra help positions authorized by Government Code sections 7522.56, 21224, 21227, and 21229. Staff in these positions help eliminate project backlogs, work on special projects, and perform work that is more than what regular staff can do.

These positions are distinct from “vacant positions,” which would not be governed by the regulations. (More information about the types of retired annuitants can be found in A Guide to CalPERS Employment After Retirement, starting on page 9.) Appointments would be limited 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.

The regulations would 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-month periods. A CalPERS-covered employer may request the 12-month extension more than once.

For current retired annuitants, the first appointment would start when the proposed regulations go into effect, which will likely occur in mid-to-late 2023. Under the regulations, extra help retired annuitants would be eligible for the following appointments:

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

What amendments are Cal Cities seeking?

The proposed regulations are simply unclear and need clarification. As written, they could create serious staffing problems for cities. Cal Cities’ comment letter specifically recommends that the regulations be amended to clarify that retirees may be appointed to extra help positions by their former employer for work that is substantially similar to work they performed for that employer before retirement. This is a critical clarification that would allow retirees to use their expertise and years of experience to serve communities in a limited-term capacity.

Cal Cities also recommends that the regulations be amended to clarify the process for appointment extensions, allow the extensions to be non-consecutive, and remove the requirement that extensions be placed on the consent calendar portion of a public meeting agenda.

Additional resources

For additional information, please refer to the notice of proposed rulemaking, initial statement of reasons, CalPERS staff analysis, slide deck presentation, and text of the proposed regulation for more information about the proposed regulations.

For questions, please contact Legislative Affairs Lobbyist Johnnie Pina