BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 775|
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THIRD READING
Bill No: AB 775
Author: Niello (R)
Amended: As introduced
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 5-0, 6/25/07
AYES: Wiggins, Ashburn, McClintock, Migden, Negrete McLeod
ASSEMBLY FLOOR : 72-0, 5/10/07 - See last page for vote
SUBJECT : County employees retirement: employment of
retirees
SOURCE : County of Sacramento
DIGEST : This bill prohibits 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.
ANALYSIS :
Existing law:
1. 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,
CONTINUED
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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.
2. Provides for the Unemployment Insurance (UI) program,
administered by the 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.
3. Permits a retiree to work in Public Employees Retirement
System (PERS)-covered employment, for up to 960 hours in
a calendar year, without reinstatement from retirement
or loss or interruption of PERS retirement benefits.
4. 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.
This bill prohibits a retiree of a county operating a
retirement system under the '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 : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/26/07)
County of Sacramento (source)
California State Association of Counties
Howard Jarvis Taxpayers Association
Los Angeles County Employees Retirement Association
ARGUMENTS IN SUPPORT : According to the bill's sponsor,
the County of Sacramento, "Employees who retire from county
service and return to work as retired annuitants on
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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."
ASSEMBLY FLOOR :
AYES: Adams, Aghazarian, Arambula, Bass, Beall, Benoit,
Berg, Berryhill, Blakeslee, Brownley, Caballero, Charles
Calderon, Carter, Cook, Coto, Davis, De La Torre, De
Leon, DeSaulnier, DeVore, Duvall, Emmerson, Eng, Evans,
Feuer, Fuller, Gaines, Galgiani, Garcia, Hancock,
Hayashi, Hernandez, Horton, Houston, Huff, Huffman,
Jeffries, Jones, Karnette, Keene, Krekorian, La Malfa,
Laird, Leno, Levine, Lieber, Ma, Maze, Mendoza, Mullin,
Nakanishi, Nava, Niello, Parra, Plescia, Portantino,
Price, Richardson, Salas, Saldana, Silva, Smyth, Solorio,
Spitzer, Strickland, Swanson, Torrico, Tran, Villines,
Walters, Wolk, Nunez
NO VOTE RECORDED: Anderson, Dymally, Garrick, Lieu, Sharon
Runner, Ruskin, Soto, Vacancy
JJA:mw 6/26/07 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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