CalSTRS Retired Educator - Summer 2007 eNewsletter

The arrangement works for everyone: retired CalSTRS members stay active and earn additional income, while schools and students benefit from their wealth of knowledge and experience.

CalSTRS retirees may continue to draw retirement benefits after they return to work in California public schools and community colleges. However, if you’re working in a CalSTRS-covered position, there is a limit to the amount you can earn without affecting your benefit.

The earnings limit for CalSTRS retirees for fiscal year 2007-08 is $27,940, which is $880 higher than in 2006-07. It applies only to CalSTRS-covered employment, including substitute teaching.

We will notify you by mail if your earnings get close to the limit. If you exceed the limit, your monthly retirement benefits will be reduced by the excess amount, up to your total annual benefit amount. For example, if you earn $3,000 more than the limit in a fiscal year, we will reduce your retirement payments by $3,000.

Earnings Limit Is Adjusted Annually

The Teachers’ Retirement Board adjusts the earnings limit annually. It is roughly equal to 50 percent of the average full-time salary of CalSTRS Defined Benefit members. The earnings limit usually goes up each year to reflect rising teacher salaries.

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