Generally, these individuals are nearing retirement age and to accept employment with the Chancellor's Office would subject the individual to membership in the PERS Tier 2 retirement plan. This bill would also provide the Board of Governors of the California Community Colleges to enter into an agreement with any district or publicly funded organization with the California Community Colleges for the loan or temporary assignment to the Board of Governors of a person employed by any district or publicly funded community college organization within the system. The temporary assignment or loan of that employee shall not exceed two years, except that extension of the two years shall be authorized when the Board of Governors finds it necessary to meet a compelling program or management need. Any temporary loan or assignment shall be made only with the consent of the employee, under the terms and conditions agreeable to the employee. The Board of Governors may also enter into an agreement with any community college district for the loan or temporary assignment of an employee of the chancellor's office to any community college district within the system.
Current law allows for the temporary loan of employees under an interjurisdictional exchange.
This program, however, has specific limitations that do not allow sufficient flexibility required by the Board of Governors in retaining qualified and experienced individuals. The Board of Governors reimburses the community college district to cover the person's salary and benefits. This treatment is consistent with current law on the interjurisdictional exchange of employees. There would not be any increase in program costs to STRS, however, there could be a savings in state costs to provide retirement benefits to the potential population of individuals accepting positions with the Chancellor's Office. It could also increase the number of retroactive adjustments to previously reported service but would not expect more than 10 or 12 a year.