Terminating the Employment Relationship

3. “G OLDEN H ANDSHAKE ” FOR ’37 A CT E MPLOYERS ’37 Act agencies may offer “golden handshakes” to eligible employees as an incentive for early retirement in order to reduce labor costs. When the board of supervisors, by resolution, determines that because of an impending curtailment of service or change in the manner of performing service to save money, or other economic benefit resulting to the county, the best interests of the county would be served, a member shall be eligible to receive additional service credit if the following conditions exist: The member is employed in a job classification, county department, or other county organizational unit included in the resolution adopted by the board of supervisors. The member retires on or between dates specified by the board of supervisors in its resolution. In no event shall the specified period exceed 180 days. The county transmits to the retirement fund an amount determined by the board of retirement which is equal to the actuarial equivalent of the difference between the allowance the member receives from the receipt of this additional service credit and the amount he or she would have received without the credit. This must be made in a manner and time period agreed upon by the county and the retirement board. The county shall make the payment with respect to all eligible employees who retire during the period specified by the board of supervisors. 316 The amount of service credit may be any amount as determined by the board of supervisors, but no more than two years of service credit. It shall also not exceed the number of years that exist between the date of the member’s retirement and the date of the member’s mandatory retirement age, if any. Golden handshakes are not available to members if the member receives any unemployment insurance payments during the six-month period prior to the window period specified by the board of supervisors for the golden handshake retirement. It is also not available to any member who is not eligible to retire without the additional service credit. Golden handshakes are not applicable in any county or district until Government Code section 31641.04 is adopted by ordinance of the board of supervisors or the governing body of the county or district. Any county or district may adopt or readopt this section at any time as conditions may warrant. 317 If any member receives a ’37 Act golden handshake and subsequently reenters employment in a ’37 Act county or district, he or she shall forfeit the service credit acquired unless the reentry is a result of a temporary callback limited to a maximum of 750 hours of service in any one year. In addition, the PEPRA requires a 180 day “sit out” period before a retired annuitant, who retires pursuant to accepting a golden handshake, can return to work for a ’37 Act agency (or an agency with a reciprocal retirement system with the ’37 Act agency) without reinstatement into the retirement system. 318

Terminating the Employment Relationship ©2019 (s) Liebert Cassidy Whitmore 91