AgdaPkt 2004-04-12 - Laserfiche WebLink

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.' I . . I . '. - 8A-3 IMPLEMENTATION OF SB 621 (BATTIN) RETURN TO WORK AFTER RETIREMENT '~ INDIAN GAMING- CITY IMPACTS CalPERS has changed its retum to work For cities impacted by Indian casinos: provisions for retirees in order to maintain the mitigation funds could soon be on the way. organization's tax-exempt status with the IRS. The implications for local agencies that hire back The State Controller's Office is currently retirees are minimal and should not cause serious establishing policies and procedures for the complications. distribution of $25 million from the Indian Gam- A retiree who retires BEFORE their Normal ing Special Distribution Fund (SDF), established by SB 621, Battin, Chapter 858. Statutes of Retirement Age (i.e. 55 at a 2% at 55 benefit 2003. The funds are paid by the state Indian formula, or 60 at a 2% at 60 benefit formula), tribes to the state pursuant to the terms of cannot work for a PERS public agency for 60 gaming compacts, and dedicated to local agen- days after they separate from service, with Board cies to mitigate the impacts of Indian casinos. discretion to increase it to 90 days. If they retire at The legislation requires that if the funds are not or older than their Normal Retirement Age, they allocated by the end of each fiscal year they will can be re-hired right away under current retire- revert back to the SDF. ment provisions (i.e. up to 960 hours per year). SB 621 allocates monies into separate Tribal A CalPERS member who: accounts. Any project funded requires the 1. has retired prior to normal retirement age, approval of a seven member Indian Gaming 2. has a bona fide separation from service, Local Community Benefit Committee and Tribal 3. decided to re-enter the workforce, sponsorship with consultation from local govern- 4. found a job with a CalPERs employer as a ments. No project may be approved unless the retired annuitant, and '--- I Tribe has approved and sponsored the project. . 5. is able to start work prior to 60 days after retirement could experience a loss of earnings Concerns have been brought to the League's during the remaining 60 day period. attention that any delays in the process could EMPLOYER - An employer who wishes to hire impact eligible mitigation projects. Please let the League know if your city has any concerns a retiree that meets the above circumstances regarding the state or local process by contact- would have to wait until the remainder of the 60 ing Liisa Lawson at lIawson@cacities.org. days has expired prior to employing them as a retired annuitant. For more information, visit the. CalPERS website at www.calpers.ca.aov and click on the March 16'" agenda for the Benefits and Program Administration Committee, or contact Amy Brown at 916-658-8279. :............................................................. . 2004 LO.C.A.L LEGISLATIVE ACTION DAYS . . . . . . MAY 12-13 AT THE SHERATON HOTEL IN SACRAMENTO . . . . . . . . . . REGISTER ONLINE NOW! . . . . . . WWW.CALOCALORG . . . --I . . .............................................................: Visit the League's Official Web Site.-www.cacities.org PRIORITY FOCUSIPAGE 3