Any retiree considering returning to work with an SBCERA
participating employer should contact SBCERA before working.
The Public Employees’ Pension Reform Act of 2013 (PEPRA) imposes
restrictions on the ability of a retiree to work for an employer
in a retirement system while also collecting a pension from that
system. In addition, existing state and federal laws already
placed restrictions on employees who return to work.
Returning
Retiree Work Restrictions
- Work cannot exceed 960 hours in a fiscal year.
- No retiree may work for an employer in the same system if
they have received unemployment insurance compensation arising
out of that relationship in the prior 12 months.
- The re-employment position must be one of limited duration.
- Safety Members under age 50 may not return to work at any
SBCERA-covered employer, in any capacity, within 60 days of
termination.
- General Members (at any age) may not return to work at any
SBCERA-covered employer, in any capacity, within 180 days of
termination.
In January 2015 the SBCERA Board of Retirement adopted a policy
that allows SBCERA to monitor SBCERA retirees who return to work
for an SBCERA-covered employer in order to ensure that benefits
are paid to re-employed retirees when, and only when, such
payments comply with the law. When re-employment violates
applicable limits, proper action must be taken. Subject to Board
action, this may include, but is not limited to, reinstatement to
active membership, suspension of benefits, recovery of improperly
paid benefits and the collection of contributions owed.
According to SBCERA policy, any member who retires after the
policy was implemented and returns to work for an SBCERA-covered
employer, the following must occur:
- The employer and the employee must report the employment to
SBCERA before the employee starts.
- The employer and employee must sign an acknowledgement of,
and intention to comply with, the applicable Government Code
sections and the policy.
- The employer must provide an explanation of the limit or
limits on the duration of the re-employment.
- If the term of employment is stated to be 18 months or
less, it will be presumed to be compliant.
- If the term is over 18 months or there is no specific end
date, re-employment must be approved by the Board of
Retirement. If it is the functional equivalent of a permanent
part-time position, the employer and the employee may cease
to be in compliance.
For any member who already retired and returned to work before
the policy was implemented:
- Retirees shall be treated as if their return to work
commenced on the effective date of the policy.
- All aforementioned documentation shall be submitted as soon
as practicable.
The summary provided herein is not all-encompassing. The code
provisions, by-laws, and policies govern.
Returning Retiree Policy and Certification Form
All SBCERA retirees returning to work in any capacity
must be authorized by SBCERA using the Returning Retiree
Certification form.
Government Code section 7522.56 provides specific employment
restrictions for retirees who return to work with an employer in
the same public retirement system from which they receive a
benefit. These restrictions are intended to prevent the
“double-dipping” of a retiree receiving a monthly SBCERA
retirement benefit while also receiving compensation for
employment with an SBCERA-covered employer.
Employer: Use this form to report the details of
any return-to-work arrangement with an SBCERA retiree prior to
the retired member commencing re-employment. Once you have
completed the sections that apply, provide the form to the
retiree for review and signature.
Retiree: You are required to review and sign
this form prior to your commencement of re-employment with an
SBCERA-covered employer.
Returning Retiree Certification Form
Returning Retiree Certification Extension Request Form
Retirees Returning to Work Policy
Supplemental Questionnaires
Disability Retirement Questionnaire
Employment Relationship Questionnaire - Employer
Employment Relationship Questionnaire - Retiree
