If you are retired, you may work part-time or full-time performing creditable service at any California public
school. But the law limits the amount of money you can earn.
The Post-Retirement earnings limit for the 2008-09 fiscal year is $29,700. The limit is adjusted each July 1 based on the average
salary of active Defined Benefit Program members.
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Yes. The 2008-09 limit is $1760 higher than the 2007-08 limit.
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No. Those earnings limitations are calculated differently.
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The earnings limit calculation as described in Teachers' Retirement Law section 24214, is as follows:
- 2006-07 average earnable salary for active Defined Benefit Program members divided by the 1998-99 fiscal year base annual salary: $61,097 / $45,421 = 1.35
- Original earnings limit multiplied by the resulting factor to determine 2008-09 limit: $22,000 x 1.35 = $29,700
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Yes. We will send you two letters:
- When we receive post-retirement earnings reported from your employer a letter will be sent notifying you of the earnings limit and what will happen if you exceed it.
- When we receive earnings indicating that you are halfway to the limit, we will send you a second letter. It will notify you that you are halfway to the earnings limit and explain what will happen if you exceed the limit.
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We will send you a letter telling you that:
- You have exceeded the earnings limit
- We will begin to deduct excess earnings from your monthly retirement benefit.
Your monthly benefit will be reduced dollar-for-dollar by the amount of earnings over the limit, not to
exceed the amount of your annual retirement benefit.
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Generally any income from creditable service in the California public school system from pre-kindergarten
through community college that either:
- Requires a credential, certificate or permit
- Requires the employee to meet minimum standards adopted by the Board of Governors of the California
Community Colleges.
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The limit is imposed to control the actuarial impact on the Defined Benefit Program and to comply with Internal
Revenue Service regulations. The IRS does not allow CalSTRS to distribute retirement benefits to members who
are actively working for CalSTRS-covered employers unless the member has reached normal retirement age.
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Yes. CalSTRS is currently re-evaluating its policy on post-retirement earnings limitations. Changes would have
to be approved by the Legislature.
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Yes. See table below and please contact your employer for specifics.
Exemptions to the Post-Retirement Earnings Limitation
| Retirement Date |
Exempt Activity |
| On or before January 1, 2007* |
Providing direct remedial education in a classroom for grades 2 through 12
Providing direct classroom instruction in a K-12 classroom
Providing support and assessment for new teachers through the Beginning Teaching Support and Assessment Program
Providing support to individuals completing:
- student-teaching assignments
- alternative certification programs
- the California School Paraprofessional Teacher Training Program
Providing instruction to pupils in special education or English language learner programs |
| Any date |
Working in any CalSTRS-covered employment, provided you do not work for a period of 12 consecutive months after
your most recent retirement.
Working as an administrator requiring highly specialized skills in an emergency situation. An Exemption Certification request for Emergency Employment is required from the employer to substantiate eligibility.
Working as an administrator, either appointed by the State Superintendent of Public Instruction or assigned by a county superintendent of schools. An Exemption Certification request for Limited-Term Appointment/Assignment is required, signed by the appointing authority.
|
* Effective January 1, 2009
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Contact your employer regarding eligibility for a post-retirement earnings exemption. Your employer is responsible for completing and submitting post-retirement earnings exemption requests to CalSTRS. You will receive written notification of the acceptance or denial of the post-retirement exemption from CalSTRS.
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Track your earnings with your employer’s human resource or payroll office on an on-going basis.
Your employer will have the most accurate information regarding your earnings. Since your employer reports
your earnings to CalSTRS, generally, CalSTRS' records will be 60 days behind your employer's.
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The California Education Code prohibits employment of CalSTRS retirees in a classified position in the California
public school system. But you may accept employment in any capacity outside the California public school system
with no limitation on your earnings. This could include working for private schools, state colleges, universities
or private industry.
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