Retirement Benefits

Retiree Tips: Post-Retirement Employment Rules

2 weeks ago

Deciding on service retirement can be among the biggest milestones in your professional life. Yet for some, choosing whether to pursue employment after retirement is a close second.

One important factor to consider is whether you’ll return to work for a CalPERS employer—and, if so, the rules you’ll need to follow to stay compliant with the law. But first things first.

Working After Retirement Options

As a CalPERS retiree, you can take a job in the private sector, or return to work for a CalPERS employer. This can look like:

  • Working for a non-CalPERS employer or private industry employer.
  • Reinstatement back to active member status.
  • When needed, working as a retired annuitant on a limited, short-term assignment for a CalPERS employer.

Working for a Non-CalPERS Employer

Does your local nonprofit need help? Or maybe a career outside public service is calling. As a service retiree, you can work for any private industry employer that doesn’t provide services to CalPERS.

You can also work for a non-CalPERS retirement system while still receiving your monthly allowance.

Taking a Short-Term, Limited Position as a Retired Annuitant

Some positions may allow you to work while remaining a CalPERS retiree. A retired annuitant (RA) is an at-will employee of a CalPERS employer who does not accrue service credit and still receives a retirement allowance. This post-retirement employment option includes specific criteria around:

  • Limited duration: The position is required to prevent stoppage of public business, needed in an emergency, or contribute to a special project or excess work.
  • Hours worked: No more than 960 hours may be worked each fiscal year. You can review total hours worked through your myCalPERS account.
  • Compensation: Your hourly rate must fall within the pay schedule of others performing comparable work.
  • Bona fide separation in service: This 60-day waiting period occurs if you’ve retired earlier than your normal retirement age (age 55 for the 2% at 55 formula, age 60 for the 3% at 60 formula) and represents the separation of service before employment as an annuitant can begin. If you are not of normal retirement age, you must not have any agreements to return to work before retiring.
  • 180-day break prior to return: You cannot be employed as a retired annuitant for a period of 180 days after your retirement date unless you qualify for an exception. The 180-day waiting period begins on your retirement date and can be served concurrently with your bona fide separation of service.

Keep in mind: You and your employer share responsibility to ensure the employment follows retired annuitant rules and requirements.

Reinstating and Working for a CalPERS Employer in a Permanent Position

If you reinstate with a CalPERS employer for a permanent, part-time, or full-time position, you must apply for reinstatement from retirement into active status employment. In doing so, you may lose some benefits, such as a golden handshake (additional service credit as an incentive to retire), and/or reciprocal benefits when you re-retire.

To end your retirement is no small decision, but with proper planning you can ensure there are no surprises on your path to a new career. Reinstatement can mean:

  • Retirement payments end.
  • You continue earning service credit.
  • You return to work as an active CalPERS member.

If you’re considering a return to permanent employment with a CalPERS employer, be sure to check out Reinstatement From Retirement (PUB 37) (PDF) for additional guidance.

Learn More

By following these guidelines, you can confidently apply for and accept post-retirement employment while remaining compliant with existing rules and regulation. For more details on each type of eligible post-retirement employment, check out Employment After Retirement (PUB 33) (PDF). These guidelines are designed to ensure compliance with California Public Employees’ Retirement Law (PERL).