APS 5054 - Hiring Retirees to Work in Staff Positions

Brief Description: This policy will assist departments when hiring retirees to work in staff positions at CU.

Reason for Policy: Allows CU to demonstrate employer responsibility and provide clarity and consistency to departments when hiring retirees to work in staff positions.

1. Retirees may be hired into university staff or classified staff positions but are limited to a 9-month, 12-month or other defined project period.  All appointments are to be reviewed by the applicable human resources department at the end of each period.  Appointments may be used to:
   1. Train, cross-train, transfer knowledge or act in a short-term mentoring role for a new incumbent;
   2. Fill a position that is defined as non-supervisory and part-time;
   3. Fill a position on a unique and non-recurring project;
   4. Provide specialized knowledge or fill a specialized role;
   5. Fill an interim vacancy; or
   6. To fill a role deemed necessary by the Chancellor of a campus or the President of the System.
      
      In addition, while retirees are generally not appointed to supervisory positions, there may be extraordinary situations where a retiree is asked to assume supervisory responsibilities for a limited period of time while a search is underway (e.g., no current employee can step into that role or critical knowledge and experience are required).
2. In addition to I.A., above, hiring Colorado Public Employee Retirement Association (PERA) retirees based on C.R.S. 24-51-1101 results in certain complexities and constraints:
   1. It is the employee’s responsibility to confer with Employee Services and PERA to understand the implications of working as a PERA retiree (length of service, impact on PERA benefits, etc.).
   2. Calculating Daily and Hourly Rates
      1. See Procedures for Hiring Working PERA Retirees into Staff Positions for information on calculating daily and hourly rates for PERA retirees working in University staff positions.
   3. Contributions
      1. The working retiree pays the standard PERA contribution, but it does not contribute toward the retiree’s PERA account1
      2. The department pays the standard PERA contribution, but it, too, does not contribute toward the retiree’s PERA account1
   4. Days worked
      1. The retiree can work a maximum 110 days per calendar year.  If that retiree works more than 110 days, PERA will reduce the retiree’s monthly pension by a formula-set percentage.
      2. Each campus and system administration can designate 10 retirees to work for a maximum 140 days, through the campus’ defined approval process.
      3. It is the employee’s responsibility to track days worked under PERA rules.
   5. Departments cannot hire working retirees through a temporary agency to circumvent the PERA restrictions—the PERA rules on working retirees apply to any employment, including employment as an independent contractor.
   6. If the working retiree chooses to rescind retirement and work at CU in a regular job, the rescission must occur for both PERA and CU retirement.
3. In addition to I.A., above, hiring CU Optional Retirement Plan (ORP) retirees may result in certain complexities and constraints:
   1. An effect on distribution of 401(a) funds
   2. Reduction in Social Security benefits
4. There are six staff appointment options. The specific requirements for each kind of appointment are based on university policies and state personnel rules.
    

   Job Code	Title	Definition	Defined by State Personnel System	Temporary	Rate of Pay	FLSA Status
   2583	Working PERA Retiree	Professional University Staff	No	Temporary	Daily rate	exempt
   2583N	Working PERA Retiree	Professional University Staff	No	Temporary	Hourly Rate	eligible
   2585	Working ORP Retiree	Professional University Staff	No	Temporary	Daily rate	exempt
   2585N	Working ORP Retiree	Professional University Staff	No	Temporary	Hourly Rate	eligible
   P1A1XX	Temporary Aide	Classified staff, non-professional	Yes	Temporary	Hourly Rate	eligible
   Other Classified Staff Codes	Classified Title	Classified staff, non-professional	Yes	Regular	Varies	Varies

5. Benefits eligibility for working PERA or ORP retirees in temporary staff positions.  These retirees:
   1. May be eligible for retiree benefits (contact CU benefits for information)
   2. May have working titles that are reflective of the duties being performed (job code reflects formal title of working PERA retiree or Temporary Aide)
   3. Are not eligible for employee benefits
   4. Are not eligible to accrue vacation or sick leave
      1. If a retiree working in a temporary position currently accrues leave, no further accruals will be approved after December 31, 2013. Vacation balance must be used or paid by June 30, 2014. Sick leave balance remaining after June 30, 2014 will be eliminated and no further sick leave may be accrued.
   5. Are not eligible for merit increases, and performance plans and evaluations are not required but recommended
   6. Are not eligible for tuition benefit
   7. Are not allowed to volunteer time performing same duties as employment
6. Benefits eligibility for PERA retirees working in regular classified positions (I.D.6, above). These retirees:
   1. are eligible for State of Colorado employee benefits
   2. may be eligible for retiree benefits (contact CU benefits for information)
   3. are eligible to earn vacation and sick leave
   4. are eligible for merit increases, and performance plans and evaluations are required
   5. are eligible for tuition benefit
7. All retirees working in temporary university staff or classified staff positions will be paid for time worked during the prior pay period.
   1. Monthly example – the time worked in January is paid at the end of February
   2. Biweekly example – the time worked in a two-week period is paid two weeks later
8. All retirees working in temporary university staff or classified staff positions are required to track time in MyLeave or an alternate timesheet used by the department, and the department must process the biweekly payroll through time collection via upload of hours from MyLeave or manual entry of work hours submitted on an alternate time sheet.
9. Each campus will document procedures to address the justification process and/or the review period.

A.   Procedures for Hiring Working PERA Retirees into Staff Positions

B.   Working After Retirement published by PERA

C.  C.R.S 24-51-1101

D.  Senate bill 10-001

1. Session Law
2. PERA Information on SB10-001

E.  Time tracking and time collection for working retirees

Initial policy effective January 1, 2014.

PERA, retiree, hiring, hire