BILL ANALYSIS
AB 775
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Date of Hearing: May 2, 2007
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Ed Hernandez, O.D., Chair
AB 775 (Niello) - As Introduced: February 22, 2007
SUBJECT : County employees' retirement: employment of retirees:
prohibition.
SUMMARY : Specifically, this bill prohibits a retired annuitant
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 retired annuitant
received unemployment insurance payments arising out of prior
employment with that employer.
EXISTING 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.
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.
SB 1439 (Speier), Chapter 398, Statutes of 2004, prohibited a
retirement annuitant of the California Public Employees'
Retirement System (CalPERS) from being hired by a state agency,
if during the 12-month period prior to the proposed appointment,
the retired annuitant received any unemployment insurance
payments arising out of prior employment with the same employer.
Under CalPERS, a retired member may work for a state agency or
other employer under the system for up to 960 hours in a
calendar year, without reinstatement from retirement or loss or
interruption of retirement benefits.
FISCAL EFFECT : Unknown
AB 775
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COMMENTS : 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., 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."
Supporters conclude, "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."
REGISTERED SUPPORT / OPPOSITION :
Support
County of Sacramento (Sponsor)
California State Association of Counties
Los Angeles County Employees Retirement Association
Howard Jarvis Taxpayers Association
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957