PURPOSE

The purpose of this policy is to clarify how Government Code section 7522.56 applies to post-retirement   employment of Sacramento County Employees’ Retirement System (SCERS) retired members by or in service to participating SCERS employers.

POLICY

This policy is applicable to all SCERS retired members returning to work for a SCERS participating employer, including the following:  an employee working through a private third-party employer where that employee is providing direct services to a participating employer, an independent contractor of a participating employer, or a direct employee of a participating employer.

The phrase ”an employee working through a private third-party employer where that employee is providing direct services to a participating employer” should be construed broadly. That term includes, without limitation, a retired member who (a) works for a private third-party company that has a contract with a participating employer, and (b) under that contract, performs work that involves serving and engaging   with the participating employer. However, the term does not include a retired member who (a) works for a private third-party company that has a contract with a participating employer, but (b) performs work for 
the private company that is unrelated to that contract or the participating employer.

Section 7522.56 defines how quickly the retiree can return to work, how much the retiree can be paid, and how many hours the retiree can work annually. The SCERS Board further determines that only hours actually worked or taken within the calendar year or fiscal year, including overtime hours, will apply to the maximum limit of 960 hours as set forth in subdivision (d) of section 7522.56.  Earned credit for vacation, sick leave, or 
compensatory time off (CTO) if not actually worked or taken, does not apply to the 960- hour maximum in subdivision (d).

This policy does not apply to a retired SCERS member working in private industry or for any other non-SCERS employer, so long as the employee is not providing direct services to a SCERS participating employer.

SCERS approval is not required for a SCERS retired member to return to part-time work for a participating employer under section 7522.56. However, subdivision c) of section 7522.56 states that a retired person can return to work only during an emergency to prevent a stoppage of public business or because the retired person has the skills needed to perform work of limited duration [emphasis added].  This policy determines that the term limited duration is a period of 36 continuous months.

If during the 36-month period, the retired member suspends their retirement allowance and is reemployed as a permanent employee and contributing SCERS member, the 36-month window is paused during the period of permanent employment. When the member re-retires, the 36-month window will resume from where previously paused.

This policy further determines that a participating employer may provide a retired member with a 12-month extension on an annual basis up to two times, for a total of an additional 24 months beyond the initial 36-month period, if each 12-month extension is approved by the participating employer’s chief executive. Each 12-month extension does not need to be contiguous to the initial 36-month period or other 12-month extension.

A participating employer’s chief executive may provide a retired member working in a public safety capacity additional 12-month extensions on an annual basis to fulfill public safety workforce needs.

For purposes of this policy, 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.

APPLICATION

It is the employer’s responsibility to determine the appropriate use of retired members to meet public business needs in accordance with subdivision c) of Section 7522.56.

Participating employers establish an administrative process monitor and track SCERS retired members returning to part-time work, consistent with section 7522.56. The limited-duration period starts when the retired member begins working actual hours, not when the retired member is hired.

In accordance with Section 31680.9, participating employers shall notify SCERS of a retired member employed in any capacity without reinstatement, within 30 days of the effective date of hire. SCERS may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.

Participating employers shall provide SCERS a report, no less than semi-annually (by January 31 and July 31 of each year), disclosing the names of the retired members who have been employed, their pay rate, their hours worked, their duration of retired annuitant service, and any extensions to the 36-month period approved by the chief executive. SCERS may assess the employer a fee of two hundred dollars ($200) per retired member per month until the information is reported.

It is the participating employer’s responsibility to monitor and manage the retired member’s work hours to ensure compliance with this policy and statute. Participating employers shall notify SCERS when retired members have exceeded the maximum number of hours worked under Government Code section 7522.56.

Any retired member who works more than the maximum number of hours provided in section 7522.56, or who works beyond the initial 36-month reemployment limited duration period with a SCERS participating employer or third-party employer providing contract services to a SCERS participating employer, other than approved extensions, shall reimburse SCERS for any retirement allowance received during the period or periods of employment that are in violation of law. The retirement allowance that was paid in violation of law shall be considered an overpayment subject to collection by SCERS.

A retired member working in violation of law may also be reinstated into full membership, and SCERS may suspend the retirement benefit to such retired members as provided by section 7522.56.

Such reinstatement to active employment will suspend the retired member’s retirement benefit until such time as he/she decides to re-retire. Upon reinstatement, the employee and employer will both be required to pay contributions (including interest) for the period of unlawful employment. The employer shall contribute toward the reimbursement of SCERS for reasonable administrative expenses incurred in responding to this situation, to the extent the employer is determined by SCERS to be at fault. Upon re- retirement, should the retiree wish to return as a retired member to work for a SCERS participating employer, the return to-work rules from section 7522.56 will again apply.

AUTHORITIES

California Government Code §§7522.56, 31485.21, 31680.2, 31680.3, 31680.6 and 31680.9 SCERS Board of Retirement Bylaws, Appendix F

RESPONSIBILITIES

Executive Owner:    Chief Benefits Officer

POLICY HISTORY

Date	Description
10-15-2025	Board amended policy
03-15-2023	Board re-affirmed policy
03-18-2020	Board approved revised policy
05-15-2019	Board approved policy
03-20-2019	Staff presented Board discussion draft of revised policy for dissemination to stakeholders
08-01-2018	Renumbered from 025
12-20-2017	Board affirmed in revised policy format
06-17-2015	Board amended policy
05-06-2015	Board approved policy

SCERS Policy No. 011