If you are retired and you accept part-time or full-time employment performing creditable service in the California public school system, the law limits the amount of money you can earn from a school district or multiple districts. Most money earned outside of the California public school system is not subject to the earnings limitation.

For more information, see Post-Retirement Earnings Limit: Frequently Asked Questions.

The earnings limitation is adjusted each July 1. The maximum amount a CalSTRS retiree can earn for the July 1, 2008 - June 30, 2009 fiscal year is $29,700.

School districts report retiree earnings to CalSTRS. Upon receipt of a report of post-retirement earnings, CalSTRS will send retirees a letter explaining that these earnings will be counted toward the earnings limitation. If a retiree's post-retirement earnings reach half the limit, the retiree will be sent a second letter informing the retiree that the midpoint of the limit has been reached. If the retiree exceeds the earnings limit, a third and final letter will be sent informing the retiree that the earnings limit has been exceeded and that CalSTRS will begin to deduct excess earnings from the monthly retirement allowance. The allowance must be reduced dollar-for-dollar by the amount of earnings in excess of the limit.

The California Education Code prohibits employment of CalSTRS retirees in a classified position in the California public school system; however, you may accept employment in any capacity outside the California public school system with no limitation on your earnings. This could include employment with private schools, state colleges, universities or private industry.

Retired California State University System employees are subject to the limitations mandated by the Public Employees' Retirement Law.

Exemptions from the Earnings Limit

Provided your employer submits the required documentation, the following post-retirement earnings are exempt from the earnings limit:

• If you return to post-retirement CalSTRS-covered employment without performing CalSTRS-covered employment for at least 12 consecutive months after your most recent retirement, you are automatically exempt from the earnings limit (this exemption ends on June 30, 2009, and does not require employer documentation).
• If you retired on or before January 1, 2006, and are providing direct remedial education in a classroom for grades 2 through 12 during the summer, before school, after school, on weekends, during intersession or in any combination of these times. (Employer documentation is required).
• If you retired on or before January 1, 2006, and return to:
• Provide direct instruction in a K-12 classroom.
• Provide support and assessment for new teachers through the Beginning Teaching Support and Assessment Program.
• Provide support to individuals completing student teaching assignments, alternate certification programs or the California School Paraprofessional Teacher Training Program.
• Provide direct instruction in special education and English language learner programs.
• If you return to work as an administrator requiring highly specialized skills in an emergency situation.
• If you return to work as a trustee or administrator for a financially insolvent employer.