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Home My WebLink AboutMINUTES - 05082007 - C.29 -s L Contra TO: • BOARD OF SUPERVISORS FROM: JOHN CULLEN, „ `� Costa County Administrator ;; - - hoz sr'9 '►`� County DATE: May 8, 2007 --------- OUIi SUBJECT: SUPPORT POSITION on AB 775 (Niello)— Relating to County z Employees' Retirement SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: SUPPORT Assembly Bill 775 (Niello), legislation that would make eligibility requirements for 1937 Act retirement systems consistent with state law governing the eligibility of retired state employees for unemployment insurance, as recommended by the County Budget Officer. FISCAL IMPACT: If AB 775 passes, it will have no impact on employees' retirement or retired annuitant amounts. BACKGROUND: 1937 Act County employees who retire from county service and return to work as retired annuitants on temporary assignments are eligible to draw unemployment insurance in the event they have worked the maximum 960 hours or are released from their position due to "lack of work." This practice has been referred to in the press as "triple dipping" (i.e., collecting retirement, retired annuitant salary and unemployment insurance). While this allowable practice has not been knowingly practiced in Contra Costa County, it is inappropriate. Retired state employees are allowed to collect unemployment insurance after working 960 hours or being released due to "lack of work," but are prevented from being hired as a retired annuitant by the employer from whom they earned their retirement if the retirees have received unemployment insurance benefits in a 12 month prior period. AB 775 (Niello) states that 1937 Act counties cannot hire a retired annuitant if they received any unemployment insurance payments from their home county during the prior year. This change parallels current law for state employees and conforms to federal law. AB 775 (Niello) will have no impact on the employee's retirement or retired annuitant amounts. AB 775 comes at the request of Sacramento County officials who discovered that over a 22-month period, 27 former county employees had returned to the county as "retired annuitants" and then collected unemployment payments when those jobs ended, c sting the county $128,910. CONTINUED ON ATTACHMENT: x YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COM I EE APPROVE OTHER 01Q6:;z 4Le-04 r SIGNATURES ACTION OF BO D N APPROVED AS RECOMMENDED _ I /HER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF IV- UNANIMOUS(ABSENT THE BOARD OF SUPERVISORS ON THE DATE SHOWN. /j�� ) AYES: NOES: ABSENT: ABSTAIN: Contact: L. Delaney 5-1097 Cc: ATTESTED L. Driscoll,GAO's Office JOHN CULL CLERK OF THE BOARD OFSUPERVISORS C.Christian,via CAO's Office BY: DEPUTY CALIFORNIA LEGISLATURE-2007-08 REGULAR SESSION ASSEMBLY BILL No. 775 Introduced by Assembly Member Niello February 22, 2007 An act to amend Sections 31680.2, 31680.3, and 31680.6 of the Government Code, relating to county employees'retirement. LEGISLATIVE COUNSEL'S DIGEST AB 775, as introduced, Niello. County employees' retirement: employment of retirees: prohibition. The County Employees Retirement Law of 1937 authorizes a county to employ,without reinstatement from retirement, a retired member in a position requiring special skills or knowledge.Under the law,a retired member may not work more than 90 working days or 720 hours, in a fiscal year or any other designated 12-month period,except as specified in Contra Costa County. The law authorizes a board of supervisors to extend that reemployment period to permit a retired member to work up to 120 working days or 960 hours, whichever is greater, in a fiscal year or any other designated 12-month period. This bill would provide that the authorizations described above are inapplicable to a retired member who is employed by an employer under the system and who, within 12 months prior to that employment, received unemployment insurance compensation following the termination of an appointment with the same employer. The bill would require a retired person who accepts an appointment after receiving unemployment insurance compensation,as specified,to terminate that employment on the last day of the current pay period and would prohibit reappointment for a period of 12 months. 99 AB 775. —2— Vote: 2—Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Section 31680.2 of the Government Code is 2 amended to read: 3 31680.2. (a) Any person who has retired may be employed in 4 a position requiring special skills or knowledge, as determined by 5 the county or district employing him or her, for not to exceed 90 6 working days or 720 hours,whichever is greater,in any one fiscal 7 year or any other 12-month period designated by the board of 8 supervisors and may be paid for that employment. That 9 employment shall not operate to reinstate the person as a member 10 of this system or to terminate or suspend his or her retirement 11 allowance,and no deductions shall be made from his or her salary 12 as contributions to this system. 13 (b) (1) This section shall not apply to any retired person who 14 is otherwise eligible for employment under this section if, during 15 the 12-month period prior to an appointment described in this 16 section, that retired person receives unemployment insurance 17 compensation arising out of prior employment subject to this 18 section with the same employer. 19 (2) A retired person who accepts an appointment after receiving 20 unemployment insurance compensation as described in this 21 subdivision shall terminate that employment on the last day of the 22 current pay period and shall not be eligible for reappointment 23 subject to this section for a period of 12 months following the last 24 day of employment. 25 SEC. 2. Section 31680.3 of the Government Code is amended 26 to read: 27 31680.3. (a) Notwithstanding Section 31680.2, any member 28 who has been.covered under the provisions of Section 31751 and 29 has retired may be reemployed in a position requiring special skills 30 or knowledge, as determined by the county or district employing 31 the member, for not to exceed 120 working days or 960 hours, 32 whichever is greater, in any one fiscal year and may be paid for 33 that employment. That employment shall not operate to reinstate 34 the person as a member of this system or to terminate or suspend 99 -3— AB 775 1 the person's retirement allowance,and no deductions shall be made 2 from the person's salary as contributions to this system. 3 (b) (1) This section shall not apply to any retired member who 4 is otherwise eligible for reemployment under this section if, during 5 the 12-month period prior to an appointment described in this 6 section, that retired person receives unemployment insurance 7 compensation arising out of prior employment subject to this 8 section with the same employer. 9 (2),-A retired person who accepts an appointment after receiving 10 unemployment insurance compensation as described in this 11 subdivision shall terminate that employment on the last day of the 12 current pay period and shall not be eligible for reappointment 13 subject to this section for a period of 12 months following the last 14 day of employment. 15 SEC. 3. Section 31680.6 of the Government Code is amended 16 to read: 17 31680.6. (a) Notwithstanding Section 31680.2, any county 18 subject to Section 31680.2 may,upon adoption of a resolution by 19 a majority vote by the board of supervisors, extend the period of 20 time provided for in Section 31680.2 for which a person who has 21 retired may be employed in a position requiring special skills or 22 knowledge,as determined by the county or district employing him 23 or her,to not to exceed 120 working days or 960 hours,whichever 24 is greater, in any one fiscal year or any other 12-month period 25 designated by the board of supervisors and may be paid for that 26 employment. That employment shall not operate to reinstate the 27 person as a member of this system or to terminate or suspend his 28 or her retirement allowance,and no deductions shall be made from 29 his or her salary as contributions to this system. 30 (b) (1) This section shall not apply to any retired person who 31 is otherwise eligible for employment under this section if, during 32 the 12-month period prior to an appointment described in this 33 section, that retired person receives unemployment insurance 34 compensation arising out of prior employment subject to this 35 section with the same employer. 36 (2) A retired person who accepts an appointment after receiving 37 unemployment insurance compensation as described in this 38 subdivision shall terminate that employment on the last day of the 39 current pay period and shall not be eligible for reappointment 99 AB 775, —4- 1 4-1 subject to this section for a period of 12 months following the last 2 day of employment. O 99