Staff Report.Adopt CalPERS Resolution
PREPARED BY: Lisa Velasco
Human Resources Director
Reviewed by: Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 12/21/2021 ITEM NO: 19
DATE: December 15, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution for the California Public Employees’ Retirement System
Retirement Plan to Waive the 180-Day Retiree Rehire Wait Period and to
Appoint a Retiree as an Interim Finance Director
RECOMMENDATION:
Adopt a resolution for the California Public Employees’ Retirement System retirement plan to
waive the 180-day retiree rehire wait period and to appoint a retiree as an Interim Finance
Director (Attachment 1).
BACKGROUND:
The Town has an existing agreement with the California Public Employees’ Retirement System
(CalPERS) to provide its retirement program to employees. The CalPERS retirement program is
governed by Public Employees’ Retirement Law (PERL). PERL contains the rules and regulations
that a contracting agency must adhere to related to the hire of a CalPERS retiree, referred to as
a retired annuitant. PERL requires that a non-safety retired annuitant may not work for a
CalPERS contracting agency unless the retired annuitant has been retired for at least 180-days
(Gov. Code section 7522.56). In lieu of the 180-day wait period, an agency’s governing body
may approve a resolution to waive the 180-days. PERL also requires that if a retired annuitant
will be rehired into a vacant position while a recruitment for a permanent replacement is taking
place, the governing body must approve a resolution appointing the retired annuitant as an
interim employee [Gov. Code section 21221(h)].
DISCUSSION:
Stephen Conway has been employed as the Town of Los Gatos Finance Director since May
2001. Recently, Mr. Conway provided his notice of intent to retire from the Town with his last
PAGE 2 OF 2 SUBJECT: Adopt CalPERS Resolutions DATE: December 15, 2021
DISCUSSION (continued):
day of work to occur on December 30, 2021 resulting in a CalPERS retirement effective date of
December 31, 2021.
The Town has entered into an agreement with the executive recruitment firm of Teri Black &
Co. to facilitate the search for a new Finance Director. The typical span of the recruitment
timeline to hire an executive position is four months. The Finance Director provides critical
oversight and contributions to financial processes, audits, and required financial documents
such as the Annual Comprehensive Financial Report. To allow for this continued oversight as
well as the transfer of important institutional knowledge to the new Finance Director, staff is
requesting to rehire Stephen Conway as an Interim Finance Director until the permanent
replacement is hired.
Before Mr. Conway can be hired as a retired annuitant, the Town Council must adopt a CalPERS
resolution to allow staff to request that the reemployment begins earlier than the 180-day wait
period and to appoint Mr. Conway as an Interim Finance Director. A retired annuitant may be
appointed in an interim position provided that there is an open recruitment to fill the vacancy
and the same individual may only be appointed to the vacant position one time. The rate of
pay may not be less than or more than the current approved salary range for the vacant
position. Also, a retired annuitant may not work more than 960 hours in a CalPERS fiscal year.
The CalPERS fiscal year begins July 1 and ends on June 30. The tentative first day of
employment as a retired annuitant for Mr. Conway is January 1, 2022, subject to CalPERS
approval of the executed resolutions.
CONCLUSION:
Staff recommends that the CalPERS resolution to waive the 180-day wait period exception and
to appoint Stephen Conway to the Interim Finance Director position be adopted by Council
while the recruitment for a permanent replacement takes place.
FISCAL IMPACT:
It is anticipated that the rehire of a retired annuitant will result in overall budget savings given
that the retiree will no longer be eligible for benefits related to permanent employment except
the Town’s contribution to Medicare.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. CalPERS Resolution for 180-Day Wait Period Exception and Appointing Stephen Conway as
an Interim Finance Director