FROM: Barbara Hannah, Chief Counsel
SUBJECT: Benefits Policy No. 032 (Retirees Returning to Work)
RECOMMENDATION:
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Approve and adopt updates to Benefits Policy No. 032 (Retirees Returning to Work).
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BACKGROUND:
Under Public Employees' Pension Reform Act (PEPRA), a retired person is prohibited from serving or being employed by a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, unless an exception applies. Under PEPRA, one of those exceptions authorizes a retired person to serve without reinstatement if appointed by the appointing power of a public employer during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration. The law limits those appointments to a total for all employers in that system of 960 hours in a fiscal year.
The SBCERA Board, initially adopted this Policy in January 2015 for the purpose of implementing the requirements under PEPRA to ensure compliance among retirees and employers. Now, in light of Governor Newsom signing into law Assembly Bill 2474, specifically Government Code section 31680.9 providing additional requirements regarding the enforcement of the return-to-work requirements under the County Employees' Retirement Law (CERL) and PEPRA, staff is recommending that the Board approve the following substantive updates to Benefits Policy No. 032.
1. Return-to-Work Violations (Penalties & Fees) (Section F, pages 5-6)
The Policy unambiguously provides notice to employer and retiree that the penalties for violating the return-to-work, are specifically the following:
a. The retiree will be reinstated.
b. If reinstated, both the employer and retiree, will be required to pay to SBCERA employer and employee contributions, with interest.
c. The retiree will be required to return all benefit payments received during the period of violation.
d. T...
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