To ensure adequate state staffing to expedite the emergency response and recovery, Governor Newsom signed Executive Order N-25-20 (the “Order”) on March 12, 2020. Among other things, the Order suspends the work hour limitations for retired annuitants who work in CalPERS-covered service during the COVID-19 state of emergency.

On March 18, 2020, CalPERS issued Circular Letter 200-015-20 (the “CalPERS Letter”) to inform public agencies of the impact of the Order on CalPERS retirees employed as retired annuitants with all CalPERS employers. The CalPERS letter explains that, under the Order, any hours worked by a retired annuitant to ensure adequate staffing during the state of emergency will not be counted toward the 960-hour limit for the fiscal year. The 180-day break in service requirement and the 60-day separation in service requirement are suspended during the state of emergency.

These work hour limitations for retired annuitants will be suspended from March 4, 2020, when the state of emergency was declared, until the emergency is lifted.

Public employers must continue to comply with legal requirements for compensation and benefits, as set forth in the Government Code. Agencies must continue to enroll and report retired annuitants to CalPERS. They must also notify the Director of the California Department of Human Resources of any individual employed under these waivers by sending notice to CAStateofEmergency@calhr.ca.gov.

Further, a retired annuitant cannot receive any benefit, incentive, compensation in lieu of benefits, or other compensation beyond the hourly pay rate. Any predetermined agreement between an employer and an impending retiree who has not attained normal retirement age remains in effect, consistent with federal law.

The full text of Executive Order N-25-20 may be found here, and CalPERS Circular Letter 200-015-20 may be found here.

If you have any questions or concerns, you are welcome to contact the offices of Churchwell White at (916) 468-0950 or email Douglas White at Doug@whitebrennerllp.com, Nubia Goldstein at Nubia@whitebrennerllp.com, Debra Hinshaw Vierra at Debra@whitebrennerllp.com, or Erin Dervin at Erin@whitebrennerllp.com.