Some 15 percent of CalSTRS retired members return to work at least part time in California’s public school system.

Separation From Service Requirement

The Teachers’ Retirement Law now conforms to Federal law that prohibits the distribution of retirement benefits before either the normal retirement age or a separation from service. CalSTRS normal retirement age is 60.

As a result, if you are under age 60 and return to CalSTRS-covered employment immediately after retirement, your benefit will be reduced. The dollar-for-dollar deduction equals the amount you earn during whichever time period is shorter:

• The period from your retirement effective date until your 60th birthday
• The six months following your retirement effective date

The requirement for this deduction will begin July 1, 2010, regardless of your retirement effective date. Therefore, you are impacted by this requirement if you:

• Are under age 60,
• Are within six months of your retirement effective date on or after July 1, 2010, and
• Earn over zero dollars ($0) in CalSTRS-covered employment

There are no exemptions from this requirement.

Return To CalSTRS-Covered Employment

Restrictions apply to the amount you earn from one or more school districts if the job is in CalSTRS-covered employment. The earnings limit, which is adjusted each July 1, is:

• $31,020 for 2011-12
• $31,020 for 2012-13

Review a table of possible earnings limit exemptions.

Under state law, starting July 1, 2012, exemptions to the annual postretirement earnings limit will end. The new law applies to all retirees, regardless of retirement or hire date.

Contact your employer if you believe you qualify for an exemption before June 30, 2012. In most cases, your employer must submit documentation to substantiate your eligibility for an exemption by June 30. It's up to you to contact your employer to verify that the required documentation has been submitted.

Additional restriction on public school employment: You cannot work in a classified position except as a teacher’s aide under certain circumstances.

Work Outside California Public Schools

You can continue to receive your full CalSTRS retirement benefit, with no earnings limit, if you take a job outside of CalSTRS-covered employment. Examples of employment options with no earnings limit include:

• Private industry
• Private schools
• Public schools outside of California
• University of California or California State University systems

If you are also a member of another public retirement system, that system’s earnings limitations may also apply.

Report Of Retiree Earnings

Employers report retiree earnings to CalSTRS. Retired members need to track their earnings because employers have 45 days after the end of the pay period to submit the payroll to CalSTRS. CalSTRS sends two letters reminding retired members how close they are to the earnings limit. If members exceed the earnings limit, CalSTRS sends a letter informing them that excess earnings will be deducted from their retirement benefit.

Review the reporting and tracking process.

Review examples of postretirement earnings situations.

For more information, contact us at 800-228-5453.