Change Coming to Post-Retirement Employment Limits
California state rules restricting post-retirement employment (i.e. 960-hour limit and 180-day sit-out period) are back in effect April 1, 2022.
On February 25, 2022, the Governor issued Executive Order 04-22, which terminates the provisions of several earlier state of emergency Executive Orders. In particular, Executive Order 04-22 terminates the suspension of several statutory limitations on post-retirement employment, which suspension was ordered by Executive Orders 25-20, 35-20, and 12-21.
Pursuant to the new Executive Order, effective April 1, 2022, the reinstatement and work-hour limitations set forth in Government Code section 7522.56(b), (d), (f), and (g) are no longer suspended for SCERS members.
Therefore, retired SCERS members who return to work on or after April 1, 2022 must adhere to the 960 work hour limitation. As for retired SCERS members who returned to work prior to April 1, 2022, they are also subject to the 960 work hour limitation, but any hours worked through June 30, 2022 shall not count toward the limit. Please keep in mind that SCERS utilizes a calendar year measurement period to track hours for retirees.
The 180-day “sit-out” period also resumes on April 1, 2022. It is likely that several retirees may currently be working for a participating employer without yet reaching the 180-day separation period. These employees also are working under employment agreements or contracts that were authorized under the prior Executive Orders. Therefore, SCERS interprets the new Executive Order as allowing these retired employees to continue to work in the same capacity without needing to “sit out” until the 180-period has lapsed. However, any new employment arrangements for retirees on or after April 1, 2022 must comply with the statutory 180-day separation period. Please note that Government Code section 7522.56(f) provides a procedure to employ a retiree before the 180-day period.
SCERS reserves the right to supplement or modify the statements contained in this article upon receipt of further information and/or Executive Orders from the Governor’s Office.