Welcome to the Human Resources employee retirement page, providing Placer County employees the information and forms needed to make informed decisions concerning their Placer County retirement planning and benefits.
CalPERS Longevity Pay
The following is a notice to all employees and retirees of a recent decision by CalPERS related to Placer County’s Longevity Pay and whether longevity pay should be included in the calculation of compensation earnable when determining the retirement benefit owed by CalPERS. After 25 years of receiving contributions from Placer County and its employees, based on the presumption that longevity pay would continue to be included in the calculation of compensation earnable, CalPERS has now taken the position that the County’s Longevity Pay no longer meets their definition of longevity pay and will not be factored into the Final Compensation calculation for a CalPERS retirement pension.
Although Placer County communicated with CalPERS in an attempt to resolve the disqualification, the efforts have not resulted in a reversal of the decision by CalPERS. Therefore, with authorization of Board of Supervisors, the County submitted a formal appeal to CalPERS which initiates an administrative hearing process. With this process potentially spanning several months in duration, there may not be a final determination on this matter for an extended period of time.
For active employees, the Longevity Pay will continue to be paid to those employees eligible for the special compensation. The issue is whether longevity pay will be included in the calculation of Final Compensation.
The County recognizes that this CalPERS decision may impact both active employees and retirees. Further communication will be shared as additional information becomes available. Questions may be directed to the Placer County Human Resources Department by calling (530) 889-4060.