Civil Service Bulletin 8.21B

DEPARTMENT OF ADMINISTRATIVE & FINANCIAL SERVICES
Bureau of Human Resources

June 29, 2004

CIVIL SERVICE BULLETIN 8.21B

TO:	Agency Heads, HR Representatives
SUBJECT:	Reemployment of Retired Persons (Supersedes Civil Service Bulletin 8.21 and 8.21A)

Public Law 2001, Chapter 442 provided a significant change with respect to retired State employees who are rehired to State employment. The practical effect of this legislation was that a retired State employee could return to State service without a deduction to his or her service retirement benefit (often referred to as the “earnings limitation”).

The legislative history associated with PL 2001, Chapter 442 clearly indicates that the 120 th Legislature intended to permit retired state employees to return to employment in the State service with no advantage or disadvantage. The legislation has presented some administrative challenges with respect to implementation.

The matter of how PL 2001, Ch. 442 impacts the Civil Service Rules has been further examined with respect to the reemployment of retired State employees. By eliminating the earnings limitation on retirees, the Legislature clearly intended that retirees be permitted the opportunity to return to any type of employment thus superseding Civil Service Rules Chapter 8, Section 4.

Likewise, since retirees may not be afforded agency or statewide status because they must terminate to retire (thus losing status under both the bargaining agreements and Civil Service Rules), the only viable alternative that is consistent with the legislative intent is to allow retirees placement on other registers, thereby affording retirees the same standing as other non-status candidates. Hence, PL 2001, Ch. 442 supersedes Civil Service Rules Chapter 7, Section 3, Sub-section (D.) (2.).

The matter of how PL 2001, Chapter 442 impacts the prohibition against placing retirees on the reemployment register has recently come under further scrutiny. As is stated above, the history associated with PL 2001, Chapter 442 clearly indicates that the 120 th Legislature intended to permit retired State employees to return to employment in the state service with no advantage or disadvantage. After further consideration it has been determined that affording retirees access to the reemployment register simply places retirees on the same footing with other former State employees. Hence, PL 2001, Ch. 442 supersedes Civil Service Rules Chapter 7, Section 3, Sub-section (E.) (3.). *

It is important to note that even though the elimination of the earnings limitation permits retired State employees full reemployment rights, the requirement for a bona fide termination, within the meaning of Human Resource Memorandum 2-02 and Maine State Retirement System Rule 410, remains in place. Among several critical aspects associated with the MSRS Rule 410, is a requirement that if a retired employee who has not reached normal retirement age returns to work, he or she must certify to the MSRS that there was been no explicit or implicit arrangement or expectation of future employment after retirement with the same employer . (The “same employer” means State Government and teachers, not the employing agency.) Retired employees or employees who are contemplating retirement should carefully review HR Memo 2-02 and MSRS Rule 410 with respect to returning to State employment. These documents can be accessed at the websites maintained by the Bureau of Human Resources and the Maine State Retirement System respectively.

* These principles also apply equally to direct hire classifications.

The Bureau of Human Resources will take steps to make appropriate corrections to the Civil Service Rules in the next rule-making effort.

S/ Donald A. Wills
Donald A. Wills, Director
Bureau of Human Resources

DAW/pjs