On November 15, 2022, CalPERS' Pension and Health Benefits Committee adopted revised regulations governing limited duration employment of certain retired persons, for purposes of clarifying Government Code sections 7522.56, 21224, and 21229.
CalPERS drafted the proposed regulation to define limited duration for certain categories of retired annuitants, as well as those serving in upgraded positions and classifications, as specified. The regulation permits limited duration employment for covered employees for 24 months, with options for two 12 month extensions which can be made directly by the employer under specified circumstances, and additional options for exemptions if granted by the CalPERS Board of Administration.
Because the regulations were revised from a prior draft, the approval will initiate a 15-day public written comment period (anticipated to begin on or shortly after December 1), followed by submission of the final rulemaking package to the Office of Administrative Law (OAL) upon conclusion of the comment period.
A copy of the draft revised/redline regulation can be found here, and an explanatory narrative may be viewed here. Although further revisions and oral public comment to CalPERS are possible, those interested in commenting on the revised regulation should assume that the upcoming 15 written comment period will be the final opportunity to comment on the revised regulation prior to its submission to OAL.
Important changes contained in the revised regulation include, but are not limited to:
- Definition changes relating to “limited duration” and “appointment” (Section 574.1(a), Section 574.1(a)(8))
- Employer-friendly change allowing employer-approved extensions to be taken up on consent calendars (but additional exemptions granted by the CalPERS Board of Administration may not be taken up on the consent calendar of that body) (Section 574.1(a)(3)(A), Section 574.1(a)(6)(B))
- Additional findings required in connection with extensions and exemptions (Section 574.1(a)(3)(A), Section 574.1(a)(6)(B))
- Additional employer-friendly flexibility in connection with the timing within which extensions must be made, subject to an overall cap of 48 consecutive months prior to the need to request additional exemptions from CalPERS. Time period limitations for an employer to make a request for exemption to CalPERS and for CalPERS to make a determination (Section 574.1(a)(4), Section 574.1(a)(6), Section 574.1(a)(6)(ii))
- New alternative limitations and procedures in connection with specified collective bargaining agreements (Section 574.1(b))
- Changes to provisions covering an upgraded position/classification (Section 574.1(c))
CSDA previously submitted a comment letter to CalPERS concerning a prior version of the proposed regulation. A copy of the letter can be found here.
Please check the CalPERS Regulatory Actions page, “Definition of Limited Duration Employment” tab, for updates and instructions for commenting. Inquiries concerning the proposed rulemaking may be directed to:
Andrew White, Regulation Coordinator
California Public Employees’ Retirement System
P.O. Box 942720
Sacramento, CA 94229-2720
Telephone: (916) 795-3038
Regulation_Coordinator@calpers.ca.gov
The backup contact person for the proposed action is:
Andrea Peters, Regulation Coordinator
California Public Employees’ Retirement System
P.O. Box 942720
Sacramento, CA 94229-2720
Telephone: (916) 795-3038
Regulations_Coordinator@calpers.ca.gov
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