Update on Limited Duration Employment Proposed Rulemaking Action
February 16, 2023
On February 14, 2023, the California Public Employees’ Retirement System’s (CalPERS) Board of Administration voted to submit the final rulemaking package defining limited duration employment to the Office of the Administrative Law (OAL). CalPERS began this rulemaking action on June 17, 2022, and subsequently revised the text of the proposed regulations on December 1, 2022.
As reported previously, CSAC submitted written comments during the 15-day comment period on December 16, 2022, requesting that CalPERS seek less administratively burdensome options on counties utilizing retired annuitants, reduce the reporting requirements for counties, clarify the extension period timelines, improve the definition of limited duration employment, and revise the certification process. Regrettably, CalPERS is not proposing any substantive amendments to the proposed regulations.
The next step in the rulemaking process is for CalPERS to submit its final rulemaking package to the Office of Administrative Law (OAL). CalPERS has indicated that it will submit the final package to OAL in early March. As part of the process under the Administrative Procedure Act, CalPERS must summarize and respond on the record to all comments that are directed at the rulemaking proposal. Upon CalPERS submitting the regulation to OAL for review, OAL will then have 30 working days to review the proposed regulations to determine if CalPERS followed the protocols mandated under the Administrative Procedure Act. If CalPERS followed all of the mandates under the Administrative Procedure Act, CalPERS anticipates that the regulation will take effect on either July 1 or October 1, 2023. This timeline could be delayed depending on CalPERS’ interaction with OAL.