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.
November 5: After several months of negotiations, CalPERS and Placer County have come to an agreement on the Longevity Pay provision. CalPERS has agreed to calculate benefits inclusive of the County’s longevity pay for all retirees and employees who have qualified under the County’s existing provision on or before October 31, 2019, provided the County updates its labor agreement(s) and code to language preferred by CalPERS for all other employees.
On Tuesday, November 5, 2019, the Placer County Board of Supervisors, agreed to update its longevity pay provision for PPEO, Management, Confidential, and Unclassified Non-management employees to be based solely on length of service with the County.
For these groups, permanent employees hired on or before October 31, 2019 and have not yet qualified for longevity pay with Placer County will be subject to the new longevity language and eligible for a two percent increase in pay upon completion of ten years of service with Placer County, and an additional three percent upon completion of fifteen years of service. These amounts will be calculated cumulatively for a total of 5%.
Permanent employees hired on or after November 1, 2019 will not be eligible for longevity pay, which is consistent with compensation trends throughout the region.
The agreement with CalPERS and the side letter with the Placer Public Employees Organization (PPEO) are linked below for reference.
PERS Longevity Settlement Agreement (PDF)
PPEO Side Letter Longevity Pay (PDF)
September 16: Placer County filed with the Sacramento County Superior Court a motion in support of its Petition for Writ of Mandate related to four separate Public Record Act Requests submitted by Brett Holt (Chief Deputy County Counsel) to CalPERS for copies of internal records that would answer or clarify how and why CalPERS changed its interpretation of the County Placer’s longevity pay provision after approximately 25 years of accepting the County’s longevity pay as being compliant with the Public Employees Retirement Law [PERL]. The County filed the Petition on the grounds that CalPERS failed to release records which were disclosable pursuant to the California Public Records Act. With the motion filed, Placer County is seeking the court’s assistance in compelling CalPERS to produce the non-exempt records that were requested.
June 19: Placer County received a Notice of Case Assignment. CalPERS indicated that they will be requesting a hearing date from the Office of Administrative Hearings and will provide Placer County with their Statement of Issues and a Notice of Hearing. Further information will be shared with employees as it becomes available.
- Longevity Pay - Notice of Appeal 2.13.2019 (PDF)
- Longevity Pay - Notice of Appeal 3.15.2019 (PDF)
- Longevity Pay - Notice of Appeal 4.16.2019 (PDF)
- Longevity Pay - Notice of Appeal 4.19.2019 (PDF)
- Longevity Pay - Notice of Appeal 6.21.2019 (PDF)
- Longevity Pay - Notice of Appeal 7.22.2019 (PDF)
- Longevity Pay - Notice of Appeal 8.23.2019 (PDF)
- Longevity Pay - Notice of Appeal 9.27.2019 (PDF)
- Longevity Pay - Notice of Appeal 10.30.2019 (PDF)
- Declaration of Brett D. Holt in Support of Memorandum of Points and Authorities (Opening Brief) in Support of Petition for Writ of Mandate (PDF)
- Declaration of Renju Jacob in Support of Memorandum of Points and Authorities (Opening Brief) in Support of Petition for Writ of Mandate (PDF)
- Memorandum of Points and Authorities (Opening Brief) In Support of Petition for Writ of Mandate (PDF)
- Notice of Petition and Hearing of Petition for Declaratory Relief and Writ of Mandate Under the California Public Records Act (PDF)