On June 4, 2025, the California Public Employees’ Retirement System (CalPERS) issued Circular Letter No. 200-021-25 (Circular Letter) reminding Public Agencies to ensure compliance with the Public Employees’ Retirement Law (PERL) and the Public Employees’ Pension Reform Act of 2013 (PEPRA) when employing retired annuitants or face steep penalties. The Circular Letter mostly conforms to existing requirements, but many of those requirements are misunderstood and technical. The Circular Letter follows increased auditing and scrutiny of retired annuitant appointments.
The Circular Letter reiterates that most school districts and community college districts are not considered “contracting agencies” and cannot rely on under Government Code section 21221 subdivision (h), which allows agencies to hire retirees into vacant positions while actively recruiting for a permanent employee. It also clarifies the requirements for contracting agencies to legally appoint retired annuitants to positions vacated by leaves of absence or while recruiting for permanent hires. Agencies must strictly follow appointment procedures, including open-meeting resolutions, or risk significant CalPERS penalties.
You can find more information about the Circular in our Special Bulletin.