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. Some of the restrictions from existing and
more recent legislation include, but are not limited to:
- Safety Members under age 50 may not return to work at any
SBCERA-covered employer, in any capacity, within 60 days of
- General Members (at any age) may not return to work at any
SBCERA-covered employer, in any capacity, within 180 days of
- 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.
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
The summary provided herein is not all-encompassing. The code
provisions, by-laws, and policies govern. Any retiree considering
returning to work with an SBCERA participating employer should
consult with SBCERA