BILL NUMBER: SB 1439	CHAPTERED
	BILL TEXT

	CHAPTER  398
	FILED WITH SECRETARY OF STATE  SEPTEMBER 9, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 9, 2004
	PASSED THE SENATE  AUGUST 17, 2004
	PASSED THE ASSEMBLY  AUGUST 12, 2004
	AMENDED IN ASSEMBLY  JUNE 14, 2004
	AMENDED IN SENATE  MAY 17, 2004

INTRODUCED BY   Senators Speier and Soto

                        FEBRUARY 19, 2004

   An act to  amend Section 21224 of the Government Code, relating to
public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1439, Speier.  Public employees' retirement:  state retired
annuitants.
   Existing law generally requires a retired member of the Public
Employees' Retirement System to  reinstate from retirement if he or
she is reemployed by a state agency or other employer under the
system.  However, existing law also authorizes a retired member to
work for a state agency or other employer under the system for up to
960 hours in any calendar year, without reinstatement from retirement
or loss or interruption of retirement benefits, if certain
conditions exist.
   This bill would  make that authorization 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 retired member would not be reinstated
from retirement but, instead, would be required to terminate that
employment and would be ineligible for that employment for a period
of at least 12 months.  The bill would make related findings and
declarations.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares as follows:
   (a) Existing provisions of the Public Employees' Retirement Law
authorize retired members of the Public Employees' Retirement System
to return to work for limited appointments, of up to 960 hours in a
calendar year, with one or more state agencies or other employers
under the system, without reinstatement from retirement or loss or
interruption of benefits.
   (b) This provision of existing law provides state agencies and
other public employers with the ability to utilize the unique skills
of those retired members and to address emergency workflow situations
for a limited time.  This provision also provides an advantage to
retired members in that a retired member may return to work, receive
compensation for that work, and continue to receive his or her
retirement allowance.
   (c) Administration of this program has, in the past, been subject
to abuse.  Among these abuses has been the practice, by certain
retired members, of collecting unemployment insurance compensation
after the retired member has worked 960 hours in a calendar year.  As
a result, in a given year, a retired member of the system may
collect three public stipends:  a retirement allowance, a salary for
up to 960 hours of work in a calendar year, and unemployment
insurance compensation after that 960-hour limit has been reached.
The Legislature believes that this "triple dipping" process is
inappropriate and a violation of the public trust.
   (d) It is the intent of the Legislature that managers of state
agencies and departments and other public employers shall be
responsible for this abuse by retired members of the system.
Appointing powers of state agencies and other employers under the
Public Employees' Retirement System, whose retired appointees have
abused the system, should not be permitted to appoint any retired
members in the immediate term.
  SEC. 2.  Section 21224 of the Government Code is amended to read:
   21224.  (a) A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided by this
system upon appointment by the appointing power of a state agency or
any other employer either during an emergency to prevent stoppage of
public business or because the retired employee has skills needed in
performing work of limited duration. These appointments shall not
exceed a total for all employers of 960 hours in any calendar year,
and the rate of pay for the employment shall not be less than the
minimum, nor exceed that paid by the employer to other employees ma
performing comparable duties.
   (b) (1) This section shall not apply to any retired person
otherwise eligible if during the 12-month period prior to an
appointment described in this section the retired person received any
unemployment insurance compensation arising out of prior employment
subject to this section with the same employer.
   (2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment.  The retired person shall not be subject to Section 21202
or subdivision (b) of Section 21220.