Employee Relations 06/08/2012
Senate Budget Committee Approves AB 1028 Cleanup
The Senate Budget and Fiscal Review Committee, chaired by Senator
Mark Leno, yesterday approved the Corrections and Rehabilitation
budget trailer bill that includes the cleanup language for AB
1028, concerning retired annuitants.
Counties will recall that Assembly Bill 1028 (Chapter No. 440, Statutes of 2011), sponsored by the California Public Employees’ Retirement System (CalPERS), amended the Public Employees’ Retirement Law regarding the requirement that a public agency retiree cannot work for a state or public employer for more than 960 hours per fiscal year without being reinstated from retirement. The bill specified that the 960-hour limit applies to retirees employed as temporary “extra help” (which the measure defines as occurring during an emergency to prevent the stoppage of public business or to perform temporary work).
CalPERS maintains that the provisions of AB 1028 were intended to clarify current law that retired annuitants cannot be hired into permanent positions and not to disallow retired annuitants from working over successive years. However, the bill’s use of the word, “temporary” has incited confusion among public agencies and created reluctance to hire retired annuitants, as it suggested they only hire them if they are filling a temporary position. Such confusion poses a serious issue for counties utilizing retired annuitants in various employment positions. This problem has been particularly acute for sheriff and probation department positions. Accordingly, language was included in the Department of Corrections and Rehabilitation budget trailer bill that includes the removal of the word “temporary” from the statute. Budget trailer bills are heard by the Legislature concurrently with the Budget Act, which must be passed by midnight on June 15.
The Assembly Budget Committee has not yet taken action on this trailer bill. We will keep you apprised of further action.