5-113: Appointments of Retired Annuitants

Purpose

To specify the terms and conditions of employment of a retired County employee as a retired annuitant, based on their special skills or knowledge. 

Authority

• CA Government Code, Sec. 7522.56
• SCERS Post-Retirement Employment Policy No. 011
• Civil Service Commission Rules 7.5 and 7.7
• Internal Revenue Code section 401(a)
• Personnel Ordinance, Sec. 2.78.335(a) and 2.78.435 

Scope

This policy applies to all County Departments in the use of retired annuitants. 

Definitions

Eligible List: A list of persons who have qualified by examination to be considered for appointment in a class. (Civil Service Commission Rule 15.25) 

Extra Help Employee: An employee who is appointed for a short period of time, whether working part time or full time, to a position which either does not appear or is designated as extra help in the Salary Resolution. (Personnel Ordinance 2.78.240) 

Contractor: individual employed by, or through, a contract directly held by a public employer. 

Good Standing: An employee retires in good standing if the reasons for leaving Sacramento County service were not cause for dismissal [see Personnel Ordinance, Sections 2.78.335(a) and 2.78.345(a)] and the employee notified Sacramento County according to Personnel Ordinance 2.78.830. 

Limited Duration Period: The maximum period of time that a retired individual can work as a Retired Annuitant. SCERS policy defines limited duration as a 36 month period. 

Provisional Appointment: An appointment of a qualified person to fill a position for which no appropriate reemployment or eligible list exists, pending an examination. (Personnel Ordinance 2.78.268) 

Public Employer: The state, one of its agencies, any city, county, or municipal or public corporation, any political subdivision of the state or any instrumentality thereof, or an agency created by one or more such governmental organization to provide governmental services or any entity that participates in a public retirement system. 

Reinstatement: The reappointment of an employee who has resigned. (Personnel Ordinance 2.78.278) 

Resignation: The voluntary action of an employee which separates the employee from a position in County service. (Personnel Ordinance 2.78.280) 

Retired Annuitant: An individual who receives a retirement allowance from SCERS and is employed by Sacramento County in a temporary capacity of no more than 960 hours in a calendar year. 

Retiree: An individual who retired from Sacramento County service and is receiving a retirement allowance from Sacramento County Employees’ Retirement System (SCERS). 

Severance of Employment: A break in service from Sacramento County employment, prior to their appointment as a retired annuitant, of at least one hundred eighty (180) days or sixty (60) days if the retiree is a public safety officer or firefighter following his/her date of termination; did not receive a retirement incentive and 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. (CA Govt. Code 7522.56) 

Special Skills and Knowledge: The term “special skills and knowledge” as used in this policy means a special or unique skill set or subject matter knowledge that is typically gained by performing the duties of a job classification that will allow the candidate to put their skills and knowledge immediately to use resulting in increased productivity and contribution to the job being performed. 

Work Stoppage: Work during an emergency to prevent a stoppage of public business.

Policy

Retired Sacramento County employees (who meet all eligibility requirements specified in this policy) may be reinstated, provisionally appointed or certified to temporary positions as a retired annuitant based on their special skills or knowledge. 

Retired Annuitants may not work more than 960 hours in any calendar year. 

Appointments are for a limited duration (up to 36 months) with potential 12-month extensions, up to an additional 24 months (i.e. 5 years total). 

Those working in a public safety capacity may have additional 12-month extensions annually, with the approval of the County Executive or designee. 

Eligibility 

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

• Has specialized skills needed to perform work of limited duration or the retiree’s employment is needed during an emergency to prevent stoppage of public business. 
• Resigned from Sacramento County service in good standing. 
• Had a severance of employment, prior to their appointment as a retired annuitant, of at least one hundred eighty (180) days or sixty (60) days if the retiree is a public safety officer or firefighter following his/her 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 he/she is receiving a disability retirement benefit; and 
• ​Is not being compensated in excess of the maximum monthly base salary paid to other employees performing comparable duties.

Standards of Application 

Before accepting employment with Sacramento County, it is the former employee’s responsibility to: 

• Inform the County if they are receiving retirement benefits from SCERS; and 
• Inform the County if they retired with the benefit of a retirement incentive. 
• A retiree may only be appointed to a temporary position requiring special skills or knowledge. Sacramento County employing the retiree defines the “special skills or knowledge.” 
• The Department of Personnel Services determines whether a retiree may be reinstated to a class other than the last class held before retirement. 
• Retired Annuitants may not be compensated for more than 960 hours in any calendar year. 
• Hours counted toward the 960 hours limit: 
  • Actual hours worked (including regular work hours, overtime and standby hours) as entered on the time sheet. 
  • Authorized absences (including vacation or CTO) when paid and entered on the time sheet. ​

Terminal Payouts

Terminal payouts of unused vacation hours at the time of retirement (up to the current County permitted maximum) will not count toward the 960 hour limitation prescribed for retired annuitants. 

Terminal payouts earned as a retired annuitant (unused vacation hours, CTO or other payouts) will not count toward the 960 hour limitation.

Penalty for Exceeding Work Hour Limitation or Duration

Any compensation received in excess of 960 hours or after the limited duration period must be returned to the employer or the Retired Annuitant risks having their retirement benefits suspended and the individual will be returned to regular, temporary status with the County. Those that are returned to regular employment with the County may be reinstated to full SCERS membership following County employment. Retirement benefits will be suspended during the period of regular County employment. 

Both the employee and employer must pay contributions (including interest) for the period exceeding the limited duration hours. 

Self-Certification for Unemployment Insurance Benefits

Retirees or contractors (prior to being appointed as a retired annuitant) must self-certify 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. 

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

In addition, Note: All other reinstatement, provisional appointment or certified temporary appointment eligibility requirements will apply for those receiving unemployment insurance benefits. 

Benefits 

Retired annuitants are classified as extra help employees and receive the same benefits as other temporary employees. However, retired annuitants do not participate in the Deferred Compensation Part-Time/Seasonal/Temporary (PST) Plan, nor receive sick leave 

Reinstatement 

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

Retirees may be rehired by reinstatement if the appointment begins during the three-year reinstatement period and they meet all existing criteria for reinstatement. Reinstated retirees may receive any salary step in the class up to and including the step received at the time of resignation. 

Maximum Work Period 

The maximum period that a Retired Annuitant may work is limited to 36 months. Up to two (2) 12-month extensions (total of 24 additional months beyond the initial 36 month period) may be made with County Executive approval. The County Executive can designate the Director of the Department of Personnel Services to approve extensions to the limited duration periods on behalf of all Sacramento County departments. 

A Retired Annuitant in a public safety capacity may be approved for additional 12-month extensions on an annual basis to fulfill public safety workforce needs. 

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. Exception: Retired annuitants on an approved 12-month extension and who are required to maintain their peace officer status will not be terminated. 

After the three-year reinstatement period expires, a retiree may only be appointed as a certified or provisional temporary employee. 

Retired annuitants receive the entry-level salary step of the class, unless another step is approved by the Sacramento County Executive or a designated authority. (See Personnel Ordinance 2.78.415 and 2.78.470) 

Retired annuitant positions are subject to the same pre-employment requirements as required by County policy. Retirees appointed to these temporary positions must receive clearance from Department of Personnel Services. 

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.