At a meeting this week, CalPERS once again delayed taking action
to declare new precedential rules for retired annuitants who
return to work. As discussed in a
previous article, if the Board declares the Lang decision
precedential, it would make it easier for the retirement system
to impose significant new liabilities for former retired
annuitants and public agencies. For now, this is a win for
retirees and public agencies, however, the matter could be taken
up in the future.
Retirees collecting a pension may return to work, so long as they
meet specific requirements, which include limits on the amount of
pay they may receive and the number of hours worked in a 12-month
period. In the 2012 case
Appeal Regarding Post Retirement Employment of DUDLEY J.
LANG, the retired Controller for the City of Industry worked
over the 960-hour limit while collecting pension payments, which
CalPERS then directed him to pay back since he should have been
an active member of the system instead of a retired annuitant.
CalPERS attorneys have proposed using the case to set precedent
for future cases against retirees because the administrative law
judge laid out so clearly many of the rules that retired
annuitants must meet and the criteria for evaluating the case.
However, the case comes to two other, more worrying conclusions,
without clear justification. The first is that retirees have the
full burden of proving their post-retirement employment is legal
if CalPERS accuses them of unlawful employment. The second is
that a statute of limitations doesn’t apply and so CalPERS may
recoup all pension money that was paid improperly to a retired
annuitant, with no time limit.
The adoption of the Lang precedent would increase the financial
liability of workers and employers who are trying to navigate
complicated regulations. It would also open the door to
challenging the employment of annuitants long-retired, or even
passed, who would then have the full burden of proof but no
records with which to do so to avoid drastic penalties.
CSAC is opposed to this measure and sent a letter
to CalPERS outlining these concerns. Thank you to counties
who joined us in this effort by submitting letters of their own.
