Under all the new laws, AB 340 & AB 178, how soon can I return for part-time work after retirement? Must I wait 6 months?

Ask Jack Jack Ehnes

Recently passed legislation changes the postretirement earnings limit, postretirement employment and reinstatement. Under AB 178, which became effective July 1, 2012, the postretirement earnings limit formula is now based on one-half of the median final compensation for recently retired members instead of what was approximately one-half of the average annual salaries of all active members.This change increases the earnings limit from $31,020 to $40,011 for fiscal year 2012–13, effective July 1, 2012.AB 178 also extends and expands a very narrow postretirement earnings limit exemption, adds an exclusion to the postretirement limit and employment requirements, and make changes to reinstatement.

Beginning January 1, 2013, Assembly Bill 340, the Public Employees’ Pension Reform Act of 2013, requires that all retirees, regardless of age, must wait a minimum of 180 days before returning to work or their benefits will be reduced one dollar for each dollar earned, with very few exceptions.

You can continue to receive your full CalSTRS retirement benefit, with no earnings limit, if you take a job outside of CalSTRS-covered employment, including work in:

  • Private industry
  • Private schools
  • Public schools outside of California
  • University of California or California State University system

Read more about AB 178.

Read more about AB 340.