Why am I penalized for subbing after retirement if it’s done prior to 180 days after my separation from service?

Ask Jack Jack Ehnes

The California Public Employees’ Pension Reform Act of 2013 (PEPRA) extends the separation-from-service requirement, or zero-dollar earnings limit, to all members who retire on or after January 1, 2013, regardless of your age.

If your most recent retirement date was on or after January 1, 2013 and you returned to work within 180 days, or six months, under CalSTRS-covered employment, your benefit would have been reduced dollar-for-dollar by the amount that you earned in that employment, up to your benefit amount payable in that period. This requirement also applies to Cash Balance annuitants who are under normal retirement age.

For 2% at 60 members, normal retirement age is 60.

Learn more about working after retirement.