CalPERS Updates: Drafted Limited Duration Regulations for Retired Annuitants + Health Plan Regions
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Major changes to retired annuitant rules may be on the way for counties and other public agencies, as CalPERS is once again working on regulations to define limited duration for the retired annuitants.
The proposal is similar to the regulations from 2022 that ultimately did not take effect. Under current law, retired annuitants can serve a public agency if they have skills needed to perform work for a limited duration. However, the law does not define what a “limited duration” means. That has led to a wide variety of terms for retired annuitants and findings from CalPERS.
Under the proposed regulations, limited duration would be defined as a two-year period, with two optional 12 month extensions, for up to a four-year maximum period for retired annuitant employment under the traditional rules (e.g. subject to the 960 hour annual maximum). Additionally, the regulations would establish an “exemption process” that allows for retired annuitant service outside of the four year maximum. However, the retired annuitant would be limited to working no more than 120 hours per fiscal year.
These regulations are in draft form and have not yet been proposed for formal rulemaking. CalPERS has indicated that their board will likely consider the regulations at the September Board meeting, with formal rulemaking beginning sometime soon after. The text of the draft regulations and a summary are available below:
- Text of Proposed Regulations (as of July 30, 2026)
- Summary of Proposed Regulations (as of July 30, 2026)
CSAC will be actively engaging in the rulemaking process and is seeking input from CalPERS member counties. Please share any questions, concerns, ideas, or any feedback on this rulemaking package or any other issues regarding retired annuitants with Eric Lawyer (elawyer@counties.org) and Julissa Ceja Cardenas (jcejacardenas@counties.org).
Additionally, CalPERS is preparing to adopt new health regions prior to 2028 health plan rate negotiations. CalPERS recently presented a few scenarios for proposed regions at their July board meeting, which can be viewed in their presentation materials and through their discussion at the July 14 meeting. CalPERS member counties are encouraged to join an upcoming webinar on August 6th to learn more about the proposed regions and provide their direct feedback.