Working after a CalSTRS retirement

The exemption to the 180 days

Narrow exemption: you are at normal retirement age (60 for 2% at 60, 62 for 2% at 62) when the pay is earned, the appointment fills a critically needed position, you got no financial inducement to retire, your termination did not cause the need, and (from July 1, 2024) the employer had no reduction-in-force layoff in the prior 18 months. The employer must submit documentation before you start. Handbook p. 91, Separation-from-service requirement

Other limits

• You cannot work in a classified position (except, under certain circumstances, as a teacher's aide). Retired Defined Benefit members cannot contribute to the Cash Balance Benefit Program. Handbook p. 91, Working after retirement restrictions
• Third-party employers that do not participate in a California public pension system may be excluded from the limits if the activities are not normally performed by CalSTRS-employer employees and last 24 months or less. Handbook p. 92, Certain third-party employees exclusion
• Volunteering in a position that would otherwise be creditable (such as a principal) may violate the limits. Handbook p. 92, Volunteering in retirement

Going back to work for real: reinstating

You may terminate retirement and reinstate at any time. Re-retiring within one year: you must keep the same option and beneficiaries. You must earn at least one year of service credit after reinstating before you qualify for disability or survivor benefits. You lose retirement incentive service credit. Handbook p. 94, Reinstating to active member status

What the handbook says

• For the first 180 calendar days after you retire, any pay for retired member activities in California public schools (including substitute teaching) reduces your benefit dollar for dollar, up to the benefit payable in that period.p. 91, Separation-from-service requirement
• A narrow exemption to the 180 days requires you to be at normal retirement age, fill a critically needed position, have received no incentive to retire, and (from July 1, 2024) an employer with no layoffs in the prior 18 months. The employer must file paperwork before you start.p. 91, Separation-from-service requirement
• The postretirement earnings limit for 2025-26 is $80,245. Pay above it is taken back by withholding your benefit, up to your annual benefit.p. 92, Postretirement earnings limit
• Example: earning $90,000 in 2025-26 is $9,755 over the limit, so $9,755 is withheld from benefits.p. 92, Postretirement earnings limit
• Earnings during the first 180 days also count toward that fiscal year's annual limit.p. 92, How the separation-from-service requirement and annual earnings limit work together
• Retirees can't work in a classified position, except in some cases as a teacher's aide.p. 91, Working after retirement restrictions
• Working for the employer that gave you Retirement Incentive credit within five years of retiring costs you that credit.p. 91, Working after retirement restrictions
• You can reinstate to active membership at any time. Reretiring within one year means keeping the same option and beneficiaries.p. 94, Reinstating to active member status
• If you reinstate for under two years, your new benefit is your old benefit with the 2% adjustments it would have had, plus a benefit for the new service. Ricardo: $2,650 + $120 = $2,770.p. 95, How your benefit will be calculated if you reinstate

Questions