After retiring, some members return to work for L.A. County on a temporary basis. The County Employees Retirement Law (CERL) allows the County to hire a LACERA retiree who the employer believes possesses special skills or knowledge. Examples of this may include hiring the retiree to train a successor or having a retiree assist in times of staffing shortages.

120-DAY RULE
According to Government Code Section 31680.6, 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, however, the member will not accrue any additional LACERA pension benefits, nor will the member or the employer pay contributions for this service.

CERTAIN CONDITIONS APPLY
IRS regulations require the retiree to have a "bona fide" separation from service (truly retire) before being rehired. For example, an active member who retires on Friday and is rehired on Monday is viewed by the Internal Revenue Service (IRS) as never having left employment.

To protect LACERA's tax qualified status, in August 2006, the Board of Retirement (BOR) enacted Resolution 06-001 which establishes a 90-day waiting period following retirement for retirees under Normal Retirement Age who are returning to work. L.A. County's Chief Executive Officer, William T Fujioka, issued an official memorandum on October 5, 2007, endorsing the Board resolution. (11-2-07)

The declaration defines Normal Retirement Age and sets forth eligibility guidelines:
Normal Retirement Age for members of LACERA shall be:

• Age 57 for general contributory members
• Age 65 for general non-contributory members
• Age 55 for safety members

A member who retires before reaching Normal Retirement Age cannot have a prearranged agreement to return to work for the employer.

• Includes written and oral agreements
• Applies regardless of the length of the member's break in service after retirement
• Applies to employers whose employees participate in LACERA

A member who retires before reaching Normal Retirement Age must have at least a 90-day continuous break in service before returning to service as a retiree.

• Break will be calculated from the date of the member's retirement to the date preceding the first day of reemployment as a retiree
• Applies to employers whose employees participate in LACERA.

IRS penalties may apply to retirees under age 59.5 who have not had a "bona fide" separation from service and are engaged in post-retirement work with the County. For information pertaining to your individual situation, consult with a professional advisor; LACERA does not offer tax or legal advice.

Note: The 120-Day Rule and BOR Resolution 06-001 apply only to retired County employees who return to work for the County. These restrictions do not apply to County employees who retire and later work in the private sector.

For questions on LACERA's regulations regarding retirees returning to service, call 1-800-786-6464 to speak with a Retirement Benefits Specialist.