If I retire in 2013 and am over the normal retirement age, does the 180-day, $0 earnings limit under AB 340 still apply to me?

Ask Jack Jack Ehnes

Yes, all provisions under the recently signed Assembly Bill 340, the California Public Employees’ Pension Reform Act of 2013, take effect January 1, 2013.These include the postretirement employment limits, which apply to all new and existing members.As a result, if you retire on or after January 1, 2013, regardless of your age, you will be subject to the zero-dollar earnings limit during the first 180 days of your retirement.Your benefit will be reduced dollar for dollar by any compensation earned from employment covered by the limit during the first 180 calendar days following your most recent retirement date on or after January 1, 2013, up to your benefit payable during that period.

Because you have attained normal retirement age, a prospective employer may, where your appointment is necessary to fill a critically needed position before 180 days have passed following your most recent retirement, adopt a resolution approving such an appointment under specified circumstances. CalSTRS must approve the employment before you begin work.