SECTION 6 County Service After Retirement
Retirees Returning to County Work: 120-Day Rule
In situations where the County believes a LACERA retiree possesses special skills or knowledge, CERL allows the County to hire that retiree on a temporary basis without suspending the retiree's retirement allowance; however, restrictions apply.
An eligible retiree may return to work for the County for a period of up to 120 days (960 hours in any July 1-June 30 fiscal year) and continue to receive his/her retirement allowance. During this post-retirement employment, the member will not accrue any additional LACERA pension benefits, nor will the member or the employer pay contributions for this service.
To comply with IRS regulations regarding in-service distributions and protect the retirement fund's tax qualified status, LACERA imposes a 90-day waiting period following retirement for retirees who return to County service on a temporary basis. This waiting period applies only to retirees who retired prior to the normal retirement age associated with their LACERA retirement plan. In Plans A, B, and C, this applies to members who retired prior to age 57.*
Other County Service Permitted while Maintaining Retiree Status
With the exception of those working under the 120-Day Rule, generally retirees may not be paid for service to the County. However, a few other exceptions apply. LACERA retirees may maintain retiree status while receiving payment for service to the County under the following conditions:
- As a juror, election officer, field deputy for registration of voters, or temporarily as a judge when assigned by the Chairman of the Judicial Council
- As a member of the Board of Retirement or the Board of Investments
- As an independent contractor
- As an elected County official
- For suggestions made for the improvement of County or district activities
- As a court commissioner assigned by the presiding judge of a court (retiree allowance is deducted from court commissioner compensation)
Note: These restrictions apply only to retired County employees who return to work for the County. Retired County employees are free to work in the private sector without loss of their LACERA retirement benefits.**
*Other conditions apply.
**Applies to service retirements only; certain restrictions apply to members who were granted disability retirements. For additional information, visit lacera.com or call 1-800-786-6464.
UPDATE: JUNE 29, 2009
Returning to Active LACERA Membership
A retired member may return to active membership in LACERA, if the member:
- Makes an application to the Board of Retirement for reinstatement;
- Is determined by the Board of Retirement not to be incapacitated for the duties assigned to the member, based on medical examination;*
- Is eligible for membership (i.e., a permanent employee working three-quarter time or more); and
- Is hired by the County**
*Effective January 2, 2009, pre-placement medical examinations are waived for employees who are rehired within three months of their date of termination. Pre-placement medical examinations are waived for some employees with rehire dates within six months of their date of termination, provided the physical demands of their County Class Specifications are rated Physical Class 2. Certain exceptions apply; contact your Department for details.
**A Department must receive approval from the Board of Supervisors to permanently rehire a retiree. Members who received an Early Separation Program (ESP) payoff are not eligible for rehire.
The Board of Retirement will suspend the member's retirement allowance and reinstate him or her to active LACERA membership. The member must choose Plan D within 60 days or he or she will automatically become a member of Plan E.
Upon reinstatement of retirement, the member will receive one combined allowance based on two different sets of calculations:
1. The allowance the member received prior to reemployment will be resumed:
- Allowance will include all COLA increases the member would have received had he or she not returned to active service.
A member who returned to active membership prior to age 62 and whose allowance included the Pension Advance Option must have the age 62 reduction amount recalculated by LACERA's actuary. The recalculated amount will equal the actuarial value of the increase in the allowance from the date of retirement to the date of reinstatement to active membership.
2. At that time, the member will also receive an allowance calculated on the basis of credited service accrued after reemployment, based on:*
- Final compensation
- Years in the post-retirement position
- Age at the time of (this) retirement
*Service credited prior to reemployment is included in the second calculation solely for the purpose of determining eligibility for a service retirement under the post-retirement Plan.
6/16/09