Bill Text: CA SB1219 | 2013-2014 | Regular Session | Amended
Bill Title: Public employees' retirement: service after retirement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2014-08-27 - Ordered to inactive file on request of Assembly Member V. Manuel Pérez. [SB1219 Detail]
Download: California-2013-SB1219-Amended.html
BILL NUMBER: SB 1219 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 1, 2014
INTRODUCED BY Senator Torres
FEBRUARY 20, 2014
An act to amend Sections 19144 and 21202 of, and to repeal and add
Article 8 (commencing with Section 21220) of Chapter 12 of Part 3 of
Division 5 of Title 2 of, the Government Code, relating to public
employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 1219, as amended, Torres. Public employees' retirement: service
after retirement.
Existing law, the California Public Employees' Pension Reform Act
of 2013 (PEPRA) establishes various limits on retirement benefits
generally applicable to a public employee retirement system in the
state, except as specified, and among other things, prescribes limits
on service after retirement without reinstatement into the
applicable retirement system. The Public Employees' Retirement Law
(PERL) establishes the Public Employees' Retirement System (PERS) for
the purpose of providing pension benefits to specified public
employees. PERS is subject to the limits established by PEPRA, and
PERL also prescribes limits on service after retirement without
reinstatement that have been superceded by PEPRA.
The bill would repeal the superceded provisions in the PERL
described above and would add provisions limiting service after
retirement without reinstatement that conform with the requirements
of PEPRA, with certain additions. The bill would specify that a
retired person appointed without reinstatement, under those
limitations, is prohibited from receiving any benefit, incentive, or
compensation in lieu of benefits. The bill would add similar
provisions specifically addressing service by academic staff of the
California State University. The bill would require that a person who
has not attained normal retirement age have a bona fide separation
from employment, as specified, before working after retirement. The
bill would prescribe the consequences for working without
reinstatement in violation of these prohibitions, which would include
reinstatement in PERS, reimbursement of retirement allowance
received, and additional contributions to the system, as specified.
The bill would authorize employment without reinstatement, as
specified, for a person who retired with a disability but
has not attained the mandatory age for retirement applicable to
persons in the employment in which he or she will be employed, and
whom the board finds is not disabled for that employment. The
bill would except from the restrictions on service without
reinstatement specified judicial officers, judges, and elective
officers. The bill would require the suspension of a retirement
allowance of certain elective officers whose allowances are based on
service in that office, which allowances would then resume after the
office is vacated.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19144 of the Government Code is amended to
read:
19144. Subject to Article 8 (commencing with Section 21220) of
Chapter 12 of Part 3, a person who has retired from state civil
service may be employed temporarily in a civil service position at
any time following retirement, provided that the position is either:
(a) In the class in which the person had permanent or probationary
status or a career executive assignment appointment at the time of
retirement.
(b) In another class to which the person could have been
permanently transferred, reinstated, or demoted at the time of
retirement.
SEC. 2. Section 21202 of the Government Code is amended to read:
21202. A person employed in violation of Section 21221 shall be
reinstated to membership in the category in which, and on the date on
which, the unlawful employment occurred.
SEC. 3. Article 8 (commencing with Section 21220) of Chapter 12 of
Part 3 of Division 5 of Title 2 of the Government Code is repealed.
SEC. 4. Article 8 (commencing with Section 21220) is added to
Chapter 12 of Part 3 of Division 5 of Title 2 of the Government Code,
to read:
Article 8. Employment After Retirement
21220. This article shall be deemed to comply with Article 4
(commencing with Section 7522) of Chapter 21 of Division 7 of Title
1, known as the California Public Employees' Pension Reform Act of
2013, and shall be considered to further its purposes, including, but
not limited to, the purposes of Sections 7522.56 and 7522.57.
21221. (a) This section shall apply to any person who is
receiving a pension benefit from this system.
(b) A retired person shall not serve, be employed by, or be
employed through a contract directly by, a public employer in this
system if the retiree receives the benefit without reinstatement from
retirement, except as permitted by this article.
(c) A person who retires from a public employer in this system may
serve without reinstatement from retirement or loss or interruption
of benefits provided by this system upon appointment by the
appointing power or the governing body of a public employer either
during an emergency to prevent stoppage of public business or because
the retired person has skills needed to perform work of limited
duration.
(d) (1) Appointments of the person authorized under this section
shall not exceed a total for all employers in this system of 960
hours in a fiscal year. The monthly rate of pay for the employment
shall not be less than the minimum, nor exceed the maximum, paid by
the employer to other employees performing comparable duties, divided
by 173.333 to equal an hourly rate. A retired person appointed
pursuant to this section shall not receive any benefit, incentive,
compensation in lieu of benefits, or other form of compensation in
addition to the hourly pay rate. A retired person whose employment
without reinstatement is authorized by this section shall acquire no
service credit or retirement rights under this section with respect
to the employment unless he or she reinstates from retirement.
(2) Appointments of the person authorized under this section as a
member of the academic staff of the California State University shall
not exceed a total for all employers in this system of 960 hours in
a fiscal year or 50 percent of the hours the member worked during the
last fiscal year of service prior to retirement, whichever is less.
The monthly rate of pay for the employment shall not be less than the
minimum, nor exceed the maximum, paid by the employer to other
employees performing comparable duties, divided by 173.333 to equal
an hourly rate. A retired person appointed pursuant to this section
shall not receive any benefit, incentive, compensation in lieu of
benefits, or other form of compensation in addition to the hourly pay
rate. A retired person whose employment without reinstatement is
authorized by this section shall acquire no service credit or
retirement rights under this section with respect to the employment
unless he or she reinstates from retirement.
(e) (1) Notwithstanding subdivision (c), any retired person shall
not be eligible to serve or be employed by a public employer in this
system if, during the 12-month period prior to an appointment
described in this section, the retired person received any
unemployment insurance compensation arising out of prior employment
subject to this article with a public employer. A retiree shall
certify in writing to the employer upon accepting an offer of
employment that he or she is in compliance with this requirement.
(2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment.
21222. (a) A retired person shall not be eligible to be employed
pursuant to this article for a period of 180 days following the date
of retirement unless he or she meets one of the following conditions:
(1) The public employer certifies the nature of the employment and
that the appointment is necessary to fill a critically needed
position before 180 days has passed and the appointment has been
approved by the governing body of the employer in a public meeting.
The appointment may not be placed on a consent calendar.
(2) The state employer certifies the nature of the employment and
that the appointment is necessary to fill a critically needed state
employment position before 180 days has passed and the appointment
has been approved by the Department of Human Resources. The
department may establish a process to delegate appointing authority
to individual state agencies, but shall audit the process to
determine if abuses of the system occur. If necessary, the department
may assume an agency's appointing authority for retired workers and
may charge the department an appropriate amount for administering
that authority.
(3) The retiree is eligible to participate in the Faculty Early
Retirement Program pursuant to a collective bargaining agreement with
the California State University that existed prior to January 1,
2013, or has been included in subsequent agreements.
(4) The retiree is a public safety officer or firefighter hired to
perform a function or functions regularly performed by a public
safety officer or firefighter.
(b) A retired person who accepted a retirement incentive upon
retirement shall not be eligible to be employed pursuant to this
section for a period of 180 days following the date of retirement and
subdivision (a) shall not apply.
21223. A retired person who has not attained the normal
retirement age shall have a bona fide separation in service to the
extent required by the Internal Revenue Code, and the regulations
promulgated thereunder, before working after retirement pursuant to
this article. The board shall establish, by regulation, the criteria
under which a bona fide separation is satisfied.
21224. (a) A person employed in violation of this article shall
be reinstated to membership in the category in which, and on the date
on which, the unlawful employment occurred.
(b) Upon reinstatement, the retired member employed in violation
of this article shall:
(1) Reimburse this system for any retirement allowance received
during the period or periods of employment that are in violation of
law.
(2) Pay to this system an amount of money equal to the employee
contributions that would otherwise have been paid during the period
or periods of unlawful employment, plus interest thereon.
(3) Contribute toward reimbursement of this system for
administrative expenses incurred in responding to this situation, to
the extent the member is determined by the executive officer to be at
fault.
(c) Any public employer in this system that employs a retired
member in violation of this article shall, upon reinstatement of the
retired member:
(1) Pay to this system an amount of money equal to employer
contributions that would otherwise have been paid for the period or
periods of time that the member is employed in violation of this
article, plus interest thereon.
(2) Contribute toward reimbursement of this system for
administrative expenses incurred in responding to this situation, to
the extent the employer is determined by the executive officer of
this system to be at fault.
(d) This section shall not apply to violations under subdivision
(e) of Section 21221.
21225. (a) This section shall apply to any retired person who is
receiving a pension benefit from a public retirement system and is
first appointed on or after January 1, 2013, to a salaried position
on a state board or commission.
(b) A person who is retired from a public retirement system may
serve without reinstatement from retirement or loss or interruption
of benefits provided that appointment is to a part-time state board
or commission. A retired person whose employment without
reinstatement is authorized by this subdivision shall acquire no
benefits, service credit, or retirement rights with respect to the
employment. Unless otherwise defined in statute, for the purpose of
this section, a part-time appointment shall mean an appointment with
a salary of no more than sixty thousand dollars ($60,000) annually,
which shall be increased in any fiscal year in which a general salary
increase is provided for state employees. The amount of the increase
provided by this section shall be comparable to, but shall not
exceed, the percentage of the general salary increases provided for
state employees during that fiscal year.
(c) A person who is retired from the Public Employees' Retirement
System shall not serve on a full-time basis on a state board or
commission without reinstatement unless that person serves as a
nonsalaried member of the board or commission and receives only per
diem authorized to all members of the board or commission. A person
who serves as a nonsalaried member of a board or commission shall not
earn any service credit or benefits in the Public Employees'
Retirement System or make contributions with respect to the service
performed.
(d) A person retired from a public retirement system other than
the Public Employees' Retirement System who is appointed on a
full-time basis to a state board or commission shall choose one of
the following options:
(1) The person may serve as a nonsalaried member of the board or
commission and continue to receive his or her retirement allowance,
in addition to any per diem authorized to all members of the board or
commission. The person shall not earn service credit or benefits in
the Public Employees' Retirement System and shall not make
contributions with respect to the service performed.
(2) (A) The person may suspend his or her retirement allowance or
allowances and instate as a new member of the Public Employees'
Retirement System for the service performed on the board or
commission. The pensionable compensation earned pursuant to this
paragraph shall not be eligible for reciprocity with any other
retirement system or plan.
(B) Upon retiring for service after serving on the board or
commission, the appointee shall be entitled to reinstatement of any
suspended benefits, including employer provided retiree health
benefits, that he or she was entitled to at the time of being
appointed to the board or commission.
(e) Notwithstanding subdivisions (c) and (d), a person who retires
from a public employer may serve without reinstatement from
retirement or loss or interruption of benefits provided by the
retirement system upon appointment to a full-time state board
pursuant to Section 5075 of the Penal Code.
21226. A person who has retired for disability and has not
attained the mandatory age for retirement for persons in the
employment in which he or she will be employed, and whom the board
finds is not disabled for that employment, may be so employed by any
employer without reinstatement from retirement if the position is not
the position from which this person retired or a position in the
same member classification. The person's disability retirement
pension shall be reduced during this employment to an amount that,
when added to the compensation received, equals the maximum
compensation earnable by a person holding the position that he or she
held at the time of retirement. This employment shall terminate upon
the person's attainment of the mandatory retirement age for persons
in that employment. A person employed under this section shall not be
concurrently employed under this article.
21230. A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system, as follows:
(a) (1) As a subordinate judicial officer whose position, upon
retirement, is converted to a judgeship pursuant to Section 69615,
and he or she returns to work in the converted position, and the
employer is a trial court.
(2) As a retiree who takes office as a judge of a court of record
pursuant to Article VI of the California Constitution or a retiree of
the Judges' Retirement System I or the Judges' Retirement System II
who is appointed to serve as a retired judge.
(b) (1) As an elective officer.
(2) If a retired person serves without reinstatement from
retirement in an elective office and part or all of his or her
retirement allowance is based on service in that elective office, the
portion of the allowance based on service in that elective office
shall be suspended during incumbency in that elective office. The
entire retirement allowance shall be paid for time on and after the
person vacates the elective office in the monthly amount payable had
the allowance not been suspended. The governing body of every
employer other than the state shall cause immediate notice to be
given to this system of the election of any retired person to an
office of the employer.
