Rains Lucia Stern St. Phalle & Silver

California's premier full-service law firm with an emphasis on the representation of peace officers in disciplinary, criminal, labor, workers' compensation, personal injury and other civil matters.

  • About Us
  • Practice Areas
    • Labor Representation
    • Civil Litigation
    • Personal Injury
      • Example of Case Results
    • Workers’ Compensation
    • Maritime Law
    • Estate Planning
    • DOE Security Clearance Hearings
    • Peace Officers
    • Firefighters
    • EMS Agency Investigations
    • Criminal Defense
    • CalPERS Appeals
  • Our Team
  • Classes
  • Media
    • Bulletins
    • RLS in the News
  • Resources
    • Links
    • Resources
    • Newsletters
  • Clients
  • Career Opportunities
  • Contact Us
  • Disclaimer

Reportable Compensation Following Reinstatement

February 10, 2017 by Hien Nguyen

CalPERS recently circulated a letter to all CalPERS employers regarding “Reportable Pension and Settlement Agreements.” The letter clarifies a confusing aspect of the Public Employee Retirement Law (“PERL”) and explains how a recent amendment to the PERL fixes a loophole that deprived local agency members of a full back pay or make-whole remedy in disciplinary cases.

Local agency employees who successfully appealed an involuntary termination and were reinstated with back pay reasonably believed that CalPERS would credit them with for time they missed as a result of the wrongful termination. Their employers would notify CalPERS that the employee was reinstated with back pay and would make the required pension contributions for the time missed. The CalPERS letter clarifies that local agency employees who successfully challenged an involuntary termination and were awarded a full back pay or make-whole remedy by administrative, arbitration or judicial decision were not necessarily entitled to any service credit for the time they did not work as a result of the wrongful termination. This anomalous and unjust result would leave local agency employees with insufficient service credit to qualify for the retirement benefits they assumed they would receive from CalPERS. The CalPERS letter explains that in the past, only those local agency employees who retired following an involuntary termination that was later overturned and state employees whose terminations were overturned by the State Personnel Board were entitled to receive service credit for the lost time.

The CalPERS letter announces that the closure of this loophole for local agency employees who are involuntarily terminated after January 1, 2017 and the termination is subsequently overturned with back pay by an administrative, arbitration or judicial ruling. Such employees are now entitled to full service credit for the time not worked due to the wrongful termination. The new provisions are found in Government Code section 20969.3.

An important caveat to note is that the new rule only applies when a termination is overturned by an administrative, arbitration, or judicial order, not a settlement agreement or stipulation which includes reinstatement. Therefore, a member should consider the effect that any time off during a period of involuntary termination may have on his or her employment prior to accepting a settlement agreement which includes reinstatement and back pay or salary adjustment.

Members who have previously been involuntarily terminated and subsequently reinstated with back pay should be aware that it is likely they did not receive service credit for the time missed from work and to take this into account when planning for retirement.

It is also important to note that in the event that a back pay or salary adjustment is awarded pursuant to an administrative, arbitration, or judicial ruling, the employer must provide notice of the same to CalPERS within five days of the decision becoming final.

In the event that you have questions regarding the application of the new rule or its application, please feel free to us at Info@RLSlawyers.com.

Disclaimer: Case law and analysis can change over time. The information in this article is accurate as of the date the article was written and should not constitute legal advice. Always consult with an attorney.

Filed Under: Bulletins Tagged With: timothy-k-talbot

Consultation Form

Offices across California to serve you.
Contact us now to schedule a consultation.
Contact form not loading? Click here!
Rains Lucia Stern St. Phalle & Silver, PC publishes this website as a service to our clients and other friends for informational purposes only. It is not intended to be used as a substitute for specific legal advice or opinions, and the transmission of information through this website is not intended to create an attorney-client relationship between sender and receiver. Internet subscribers and online readers should not act upon this information without seeking professional counsel.

© 2023 Rains Lucia Stern St. Phalle & Silver, PC. All Rights Reserved. | Disclaimer

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPTREJECT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
  • Contact Us

  • News Alerts

Official logo for Rains Lucia Stern St. Phalle & Silver
Rains Lucia Stern St. Phalle & Silver Logo
  • About Us
  • Practice Areas
    ▼
    • Labor Representation
    • Civil Litigation
    • Personal Injury
      ▼
      • Example of Case Results
    • Workers’ Compensation
    • Maritime Law
    • Estate Planning
    • DOE Security Clearance Hearings
    • Peace Officers
    • Firefighters
    • EMS Agency Investigations
    • Criminal Defense
    • CalPERS Appeals
  • Our Team
  • Classes
  • Media
    ▼
    • Bulletins
    • RLS in the News
  • Resources
    ▼
    • Links
    • Resources
    • Newsletters
  • Clients
  • Career Opportunities
  • Contact Us
  • Disclaimer
Hotline phone numbers. Northern California: 925-609-1699. Southern California: 310-393-1486.