Governor’s Executive Order N-25-20 Brings Temporary Changes for Retired Annuitants

03.27.2020

In light of COVID-19, Governor Gavin Newsom issued Executive Order N-25-20 on March 4, 2020.  The emergency proclamation, which declared a statewide state of emergency, relaxes some rules and regulations governing retired annuitants.

According to CalPERS Circular Letter 200-015-20, which was released on March 18, 2020, the following changes are in place dating back to March 4, 2020 and last until the state of emergency is lifted:

• Work Hour Limitations: the 960 hour work limitation for retired annuitants is suspended during the course of the state of emergency.
• Wait Period Exceptions: the 180-day break in service requirement under Government Code section 7522.56(f) is suspended during the course of the state of emergency. Similarly, the 60-day break in service requirement for retirees who have not reached the normal retirement age under California Code of Regulations Title 2 section 586.2(a)(2) is also lifted.  Note, however, that the prohibition of pre-retirement agreements stipulating that the employee return to work for the agency as an annuitant upon retirement is still in place.   

Despite these temporary changes to retired annuitant regulations, the remaining working after retirement provisions in Government Code sections 21221(h), 21224(a), and 7522.56(e) will continue to apply:

• Compensation for the appointment shall not exceed the maximum monthly base salary paid to other employees performing comparable duties as listed on a publicly available pay schedule divided by 173.333 to equal an hourly rate.
• A retired annuitant shall not receive any benefit, incentive, compensation in lieu of benefits, or other form of compensation in addition to the hourly pay rate.

You must notify the director of the California Department of Human Resources if your agency chooses to hire any individual pursuant to these waivers laid out above.  Notification should be sent to CAStateofEmergency@calhr.ca.gov.

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