5-113: Appointments of Retired Annuitants

Purpose

The purpose of this policy is to establish the requirements to appoint a Sacramento County (County) retired annuitant based on their special skills or knowledge in accordance with applicable laws, rules and regulations. A retired annuitant is a Sacramento County Employees’ Retirement System (SCERS) retiree who is employed in an intermittent 960-hour position, as a contractor, or by a temporary agency doing work for the County. Due to statutory reporting requirements, departments are strongly encouraged to use intermittent 960-hour positions for all retired annuitant assignments. This aids in ensuring compliance and the avoidance of any associated fees and penalties.

Authority

• County Employee Retirement Law of 1937, Government Code Sections 31680.9, and 7522.56
• Civil Service Commission Rule 7.5
• Civil Service Commission Rule 7.7
• Internal Revenue Code section 401(a)
• Sacramento County, Personnel Ordinance 2.78.335 and 2.78.030
• The Sacramento County Employees’ Retirement System (SCERS) Post-Retirement Employment Policy
• Sacramento County Employees’ Retirement System Board of Retirement Bylaws

Scope

This policy applies to SCERS retirees seeking County employment as a retired annuitant.

Policy

It is the policy of the County to permit the appointment of retired employees into retired annuitant positions through reinstatement, provisional appointment or certification to temporary positions based on their special skills or knowledge.

Retired annuitants may also be hired as a contractor or through a temporary agency. However, the Department of Personnel Services (DPS) does not track, monitor, or report the hours paid by retired annuitants hired as contractors or through a temporary agency. The County strongly encourages employing retired annuitants in intermittent 960-hour positions. This will aid in ensuring all retired annuitant positions are accurately tracked, monitored, and reported to SCERS as required under Government Code section 7522.56.

Retired annuitants must meet all requirements outlined in this policy and shall be limited to 960 hours in any calendar year.

Retired annuitants are classified as extra help employees and receive the same benefits as other temporary employees. However, retired annuitants do not receive paid sick leave and do not participate in the Deferred Compensation Part-Time/Seasonal/Temporary (PST) Plan. Instead, retired annuitants may be eligible to participate in the County’s 457(b) Plan.

Retired annuitants may only be reinstated to a temporary, intermittent 960-hour position while receiving a retirement allowance from SCERS. A retiree (whether they retired for service or disability) may be paid for service rendered as a county official if elected after retirement.

Retired annuitants who have not worked (i.e. perform service to the County) for three years or more shall be terminated from Sacramento County service with the exception of retired annuitants who are required to maintain their peace officer status.

Retired annuitant positions are subject to the same pre-employment requirements as required by County policy.

Eligibility

A retiree may be eligible for appointment as a retired annuitant provided that the retiree has met all the following criteria:

• Has specialized skills needed to perform work of limited duration or during an emergency to prevent stoppage of public business.
• Retired from Sacramento County service in good standing. An employee retires in good standing if the reasons for leaving County service were not cause for dismissal and the employee provided written notification at least two weeks prior to the resignation effective date.
• Had a severance of employment, prior to their appointment as a retired annuitant, of at least one hundred eighty (180) days or fifteen (15) days if the retiree is a public safety officer or firefighter following their date of termination.
• Did not take advantage of an employer incentive to retire.
• Did not enter into a prior agreement or understanding, either orally or in writing, that the retiree would resume providing services for Sacramento County after retirement.
• Did not receive unemployment insurance compensation arising out of prior employment with any public employer during the 12-month period prior to appointment or while currently working as a retired annuitant.
• Is not returning to a position from which they are receiving a disability retirement benefit.
• Is not being compensated in excess of the maximum monthly base salary paid to other employees performing comparable duties.

Retirees are eligible to be appointed into intermittent 960-hour positions through reinstatement, provisional appointment, or certification.

1. Reinstatement
         • Retirees may be rehired by reinstatement if the appointment begins during the three-year reinstatement period and they meet all existing criteria for reinstatement.
         • After the three-year reinstatement period expires, a retiree may only be appointed as a certified or provisional temporary employee.
2. Provisional Appointment   
         • Retirees may be rehired by a provisional appointment if an eligible list does not exist for the class or if less than three persons are available for appointment from the eligible list.
3. Certification
         • Retirees may be rehired by a certified temporary appointment after the retiree has been certified as eligible by the Department of Personnel Services (DPS) from an appropriate list, if available.

Salary

Reinstated retirees may receive any salary step in the class up to and including the step received at the time of separation.

Retired annuitants who are certified temporary or provisionally appointed receive the entry-level salary step of the class, unless another step is approved by the Sacramento County Executive or a designated authority.

Reporting Requirements

SCERS Post-Retirement Employment Policy requires the County to provide SCERS, no less than semi-annually by January 31 and July 31 of each year, a report disclosing the names of retired members who have been employed, their hours worked, their duration of post-retirement service, and any extensions to the 36-month “limited duration” period. Additionally, a SCERS Newly Hired Retired Member Notification must be submitted upon appointment of the retired member within thirty (30) days of hiring. This includes retirees hired into retired annuitant intermittent 960-hour positions, hired as a contractor, and hired through a temporary agency.

To ensure all data is properly captured and recorded to SCERS, all hiring departments should utilize the County’s intermittent 960-hour retired annuitant positions to hire retirees.

Reporting Retired Annuitants Hired into County Intermittent 960-Hour Positions

DPS is responsible for completing all reporting requirements for retired members hired into a County Intermittent 960-hour position.

Reporting Retired Annuitants Hired as Contractors or Through a Temporary Agency
Hiring departments who hire retired members as a contractor or through a temporary agency are responsible for completing all reporting requirements to SCERS.

Hiring departments who fail to comply with this requirement may be subject to fines of two hundred ($200) per retired member per month until the information is posted.

Responsibilities

Retirees are responsible for the following before accepting employment with Sacramento County:

• Informing the appointing authority if they are receiving retirement benefits from SCERS;
• Informing the appointing authority if they retired with the benefit of a retirement incentive;
• Self-certifying that they have not received unemployment insurance compensation arising out of prior employment with any public employer, during the twelve-month period prior to their appointment or their continuation of service as a retired annuitant, using the County of Sacramento Retired Annuitant Self Certification Form (internal form: Log in Via VPN to access DPS HR forms).

Appointing Authorities/Hiring Departments are responsible for the following:

• Defining the special expertise or knowledge needed for the position in which the retiree is being appointed. A retiree may only be appointed to a temporary position requiring special expertise or knowledge.
• Notifying SCERS of all retired annuitants who are employed in a capacity that is not classified as intermittent 960-hour, such as temporary agency employees and contracted employees.
• Departments are responsible for tracking all time paid by the retired annuitant as a retired annuitant or contracted temporary worker with the County to ensure the maximum allowable hours are not exceeded.

Although DPS is responsible for reporting hours to SCERS for intermittent-960-hour positions, departments are individually responsible for monitoring all hours paid to retired annuitants to ensure they do not exceed the 960-hour limit.

The Department of Personnel Services (DPS) is responsible for:

• Determining whether a retiree is eligible for appointment.
• Determining whether the retiree may be reinstated to a class other than the last class held before retirement.
• Clearing the retiree for appointment.
• Notifying SCERS of all retired annuitants who are employed in an intermittent 960-hour position.

Duration of Appointment

Appointments shall not exceed a maximum of 960 hours in any calendar year (January-December).

Retired annuitants are eligible for employment for up to thirty-six (36) months from the first working day of their initial retired annuitant assignment.

Hours counted toward the 960 hours limit include the following:

• Actual hours compensated (including regular work hours, overtime and standby hours);
• Authorized absences when paid;

Extensions

For non-sworn retired annuitants, appointments are limited to three (3) years. The three (3) year period begins on the first day of work, with the possibility of two 1-year extensions.

For sworn, appointments are limited to three (3) years, with the possibility of two 1-year extensions. Additional 1-year extensions need approval from the Director of DPS.

Violations

Any compensation received in excess of 960 hours must be returned to the employer or the retired annuitant risks having their retirement benefits suspended and be returned to regular, temporary status with the County.

A retiree who accepts an appointment as a retired annuitant after receiving unemployment insurance compensation shall be terminated no later than the last day of the current pay period in which County receives notification. The retiree shall not be eligible for reappointment with County for a period of 12 months following the last day they received unemployment insurance compensation due to previous employment with any public employer.

More information can be found in the SCERS Post-Retirement Employment Policy.

Permanent/Regular Employment as Retiree

Prior to retirees accepting an offer of permanent/regular employment with the County, retirees must contact SCERS and submit an “Application for Suspension of Retirement Allowance” along with other required documents from the employing County department confirming the intent to hire.

For information about suspending your retirement allowance and returning to work full-time, please visit SCERS Suspension of Retirement Allowance.