General Information

• What is the Post-Retirement Earnings Limit?

  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 limit is adjusted each July 1 based on the average salary of active Defined Benefit Program members.

  The Post-Retirement earnings limit for the 2009-10 fiscal year is $30,580.

  The 2009-10 limit is $880 higher than the 2008-09 limit.

• How is the Post-Retirement Earnings Limit calculated?

  The earnings limit calculation as described in Teachers' Retirement Law section 24214, is as follows:

  • First determine the factor. Divide the 2007-08 average earnable salary for active Defined Benefit Program members by the 1998-99 fiscal year base annual salary:

    $63,281 / $45,421 = 1.39

  • To determine the 2009-10 limit, multiply the original earnings limit by the resulting factor:

    $22,000 x 1.39 = $30,580

• Why does CalSTRS place a limit on earnings?

  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.

• Are there any plans to change the earnings limit legislation?

  Yes. CalSTRS is currently re-evaluating its policy on post-retirement earnings limitations. Changes would have to be approved by the Legislature.

• Where can I get more information?
  
  

  • More information is available in the CalSTRS Member Handbook.
  • You may also contact us at 800-228-5453.

Who is Affected by the Limit

• What type of income is limited under the Post-Retirement Earnings Limit?

  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.
• Are there exemptions from the Post-Retirement Earnings Limit?

  Yes. The 12 month break exemption requires that you do not work for a period of 12 consecutive months after your most recent retirement in any CalSTRS covered employment.

  If you do not qualify for the 12 consecutive month break exemption and you retired on or before January 1, 2007, you may be exempt from the Post-Retirement Earnings Limit when providing:

  • Direct remedial education in a classroom for grades 2 through 12
  • Direct classroom instruction in a K-12 classroom
  • Support and assessment for new teachers through the Beginning Teaching Support and Assessment Program
  • Support to individuals completing:
    • Student-teaching assignments
    • Alternative certification programs
    • The California School Paraprofessional Teacher Training Program
  • Instruction to pupils in special education or English language learner programs

  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.

  You may also be exempt from the Post-Retirement Earnings Limit when 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.
  
  
  
  • 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.
• Is the Disability Earnings Limit for members who receive disability benefits or disability retirement benefits affected?

  No. Those earnings limitations are calculated differently.

• What if I don't work as a teacher?

  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
  • Private industry

Exceeding the Post-Retirement Earnings Limit

• What happens if I exceed the Post-Retirement Earnings Limit?

  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.

• What can I do to keep from exceeding the Post-Retirement Earnings Limit?

  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.

• Do you warn me when I am close to exceeding the Post-Retirement Earnings Limit?

  Yes. We will send you two letters:

  1. 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.
  2. 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.