New Law Changes Postretirement Earnings Limit, Employment and Reinstatement
The postretirement earnings limit increased from $31,020 to $40,011 with the passage of AB 178 on July 17, 2012.
The new law also extended and expanded a very narrow postretirement earnings limit exemption, added an exclusion to the postretirement limit and employment requirements, and made changes to reinstatement.
Postretirement Earnings Limit Exemption
You are exempt from the postretirement earnings limit through June 30, 2013, if you return to work as a trustee, fiscal adviser, fiscal expert, receiver or special trustee in a limited-term position appointed by the State Superintendent of Public Instruction, county superintendent of schools, State Board of Education or California Community Colleges Board of Governors to assist schools in financial or academic distress. This is the only exemption that did not end on June 30, 2012.
- Exclusion for Certain Third-Party Employers
You are excluded from the postretirement earnings limit and other postretirement employment requirements if:
- You return to work for a third-party employer that does not participate in a California public pension system.
- The activities performed are not normally performed by employees of the employer and the activities are performed on a limited term.
- Reinstatement Changes
Effective July 17, you no longer must wait one year to re-retire after reinstating. However, you must keep the same retirement option and beneficiaries—or keep your unmodified election—for one year.