BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 775
Patricia Wiggins, Chair Hearing date: June 25, 2007
AB 775 (Niello) as introduced 2/22/07 FISCAL: NO
'37 ACT COUNTIES: PROHIBIT RETIRED COUNTY EMPLOYEES WHO
RETURN TO PART-TIME COUNTY EMPLOYMENT AFTER RETIREMENT AND
THEN CLAIM UNEMPLOYMENT INSURANCE BENEFITS FROM CONTINUING
THEIR PART-TIME COUNTY EMPLOYMENT AFTER RETIREMENT
HISTORY :
Sponsor: County of Sacramento
Prior legislation: SB 1439 (Speier)
Chapter 398 of 2004
ASSEMBLY VOTES :
PER & SS 6-0 5/02/07
Assembly Floor 72-0 5/10/07
SUMMARY :
Would prohibit a retiree of a county operating a retirement
system under the County Employees' Retirement Law of 1937
('37 Act) from being hired by the same '37 Act county from
which they retired, if, during the 12-month period prior to
the appointment, the retiree received unemployment insurance
payments arising out of prior county employment as a retired
annuitant.
BACKGROUND :
1) Existing '37 Act law allows retired county employees to
work for their former employer up to 960 hours per year after
retirement .
Existing '37 Act law authorizes a '37 Act county to employ a
retired annuitant in a position requiring special skills or
knowledge for up to 120 working days or 960 hours, whichever
is greater, in a fiscal year or any other designated 12-month
period, without reinstatement from retirement or loss or
interruption of retirement benefits, and
David Felderstein
Date: 5/22/07 Page 1
2) Existing law provides Unemployment Insurance program
Existing law also provides for the Unemployment Insurance
(UI) program, administered by the State Employment
Development Department, granting weekly UI payments for
workers who lose their job through no fault of their of own.
Eligibility for benefits requires that the claimant be able
to work, be seeking work, and be willing to accept a suitable
job.
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Date: 5/22/07 Page 2
3) Chapter 398 of 2004 prohibits PERS retired annuitants who
claim Unemployment Insurance from working for their former
employer
Existing PERS law permits a retiree to work for in
PERS-covered employment, for up to 960 hours in a calendar
year, without reinstatement from retirement or loss or
interruption of PERS retirement benefits.
Chapter 398 of 2004 prohibits a PERS retiree from being hired
by a state agency, if during the 12-month period prior to the
proposed appointment, the PERS retiree received any UI
payments arising out of prior post-retirement employment with
a PERS employer.
ANALYSIS :
This bill would prohibit a retiree of a county operating a
retirement system under the County Employees' Retirement Law
of 1937 ('37 Act) from being hired by the same '37 Act county
from which they retired, if, during the 12-month period prior
to the appointment, the retiree received unemployment
insurance payments arising out of prior county employment as
a retired annuitant.
FISCAL EFFECT :
Unknown
COMMENTS :
1) Arguments in support
According to the sponsor, the County of Sacramento:
"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.,
David Felderstein
Date: 5/22/07 Page 3
collecting retirement, retired annuitant salary and
unemployment insurance). While this allowable practice has
not been prevalent in Sacramento County, the Board of
Supervisors believes that 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 period."
David Felderstein
Date: 5/22/07 Page 4
Supporters state:
"AB 775 (Niello) states that 1937 Act counties cannot hire
a retired annuitant if they received any employment
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."
2) SUPPORT :
California State Association of Counties (CSAC)
3) OPPOSITION :
None to date
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David Felderstein
Date: 5/22/07 Page 5