Employment of a CalSTRS retiree 
in a CA Public School System Earnings limit by Fiscal Year. Employment before their mandatory 180-day wait period is over.
`*CalSTRS and CalPERS have different processes and required documentation*
Attached, please find CalSTRS Employer Directive 2024-01 – Postretirement Earnings Limit and Disability Allowance Earnings Limit for the 2023-24 and 2024-25 Fiscal Years, and Disability Retirement Earnings Limit for the 2024 Calendar Year. Please review the complete directive prior to employing a CalSTRS retiree in any capacity, including as an independent contractor or employee of a third-party providing services to your agency.
As a reminder, retirees of the California State Teachers’ Retirement System (CalSTRS) are subject to a 180-day wait period upon retirement before returning to work no sooner than the 181st day under limited conditions as a retired annuitant in the California public school system. There can be an a very narrow exception to this regulation.
The directive reminds districts the:
* retiree earnings limitation is $50,655 for the 2023-24 fiscal year; * retiree earnings limitation increases to $74,733 for the 2024-25 fiscal year; * and describes conditions and limitations retirees are subject to including that the annualized rate of pay for retired member activities may not be less than the minimum or exceed the maximum paid by the employer to other employees performing comparable duties. * Also included are the required steps to request an exemption from the mandatory 180-day waiting period before a retiree may return to work in a California public school.
To request an exemption from the mandatory 180-day waiting period, CalSTRS requires the district to provide:
* A resolution that includes specific information and findings. See attached Employer Directive, pages 4-6 for details. * The resolution must be approved by the district’s board (not placed on a consent agenda) before the member commences service. See attached Exemption to the Separation From Service Requirement, sample Resolution pages 3-4. * A completed Request for Separation-From-Service Requirement Exemption (SR 1897) form. See attached. * Reminder: If CalSTRS approves the “Separation-From-Service Requirement Exemption” the retiree remains subject to the retiree earnings limitation of $50,655 for 2023-24 and $74,73 for 2024-25. * Districts (not the County Office) submit required documents to CalSTRS for approval before the retiree returns to work. * Scan and submit documents to postretirement@calstrs.com<mailto:postretirement@calstrs.com> and list the member’s Client ID on the forms.
Please note, the most common reasons a request is denied:
* The member is not of normal retirement age when the service is to be performed (60 for a 2% at 60 member, 62 for a 2% at 62 member), or that the board resolution is missing an item as described in the Circular. Follow the sample resolution closely – the language should be no more and no less than provided in the sample. Including the retired member’s name in the resolution is helpful. * The board resolution must be passed before the member commences service, and all documentation must be received by CalSTRS prior to the member commencing service. The request does not have to be approved by CalSTRS prior to commencing service, but then the member runs the risk of denial and the compensation earned must be reported. * By law, STRS has 30 days to provide a determination. The employer may submit, but STRS cannot approve, a request prior to a retirement date entered in the STRS system.
Always check the CalSTRS website for the latest information and forms on this subject. For questions, please contact CalSTRS Postretirement at postretirement@calstrs.com<mailto:postretirement@calstrs.com> or leave a voicemail at 1-916-414-5967.
Regards,
School Business Advisory Services Team Santa Barbara County Education Office
Note: This message was sent on behalf of the School Business Advisory Services Team. Please do not respond to this message. Replies will be routed to an unmonitored mailbox.
To unsubscribe, click here<mailto:sbasfinance@sbceo.org?subject=Unsubscribe>
in a CA Public School System Earnings limit by Fiscal Year. Employment before their mandatory 180-day wait period is over.`*CalSTRS and CalPERS have different processes and required documentation*
Attached, please find CalSTRS Employer Directive 2024-01 – Postretirement Earnings Limit and Disability Allowance Earnings Limit for the 2023-24 and 2024-25 Fiscal Years, and Disability Retirement Earnings Limit for the 2024 Calendar Year. Please review the complete directive prior to employing a CalSTRS retiree in any capacity, including as an independent contractor or employee of a third-party providing services to your agency.
As a reminder, retirees of the California State Teachers’ Retirement System (CalSTRS) are subject to a 180-day wait period upon retirement before returning to work no sooner than the 181st day under limited conditions as a retired annuitant in the California public school system. There can be an a very narrow exception to this regulation.
The directive reminds districts the:
* retiree earnings limitation is $50,655 for the 2023-24 fiscal year; * retiree earnings limitation increases to $74,733 for the 2024-25 fiscal year; * and describes conditions and limitations retirees are subject to including that the annualized rate of pay for retired member activities may not be less than the minimum or exceed the maximum paid by the employer to other employees performing comparable duties. * Also included are the required steps to request an exemption from the mandatory 180-day waiting period before a retiree may return to work in a California public school.
To request an exemption from the mandatory 180-day waiting period, CalSTRS requires the district to provide:
* A resolution that includes specific information and findings. See attached Employer Directive, pages 4-6 for details. * The resolution must be approved by the district’s board (not placed on a consent agenda) before the member commences service. See attached Exemption to the Separation From Service Requirement, sample Resolution pages 3-4. * A completed Request for Separation-From-Service Requirement Exemption (SR 1897) form. See attached. * Reminder: If CalSTRS approves the “Separation-From-Service Requirement Exemption” the retiree remains subject to the retiree earnings limitation of $50,655 for 2023-24 and $74,73 for 2024-25. * Districts (not the County Office) submit required documents to CalSTRS for approval before the retiree returns to work. * Scan and submit documents to postretirement@calstrs.com<mailto:postretirement@calstrs.com> and list the member’s Client ID on the forms.
Please note, the most common reasons a request is denied:
* The member is not of normal retirement age when the service is to be performed (60 for a 2% at 60 member, 62 for a 2% at 62 member), or that the board resolution is missing an item as described in the Circular. Follow the sample resolution closely – the language should be no more and no less than provided in the sample. Including the retired member’s name in the resolution is helpful. * The board resolution must be passed before the member commences service, and all documentation must be received by CalSTRS prior to the member commencing service. The request does not have to be approved by CalSTRS prior to commencing service, but then the member runs the risk of denial and the compensation earned must be reported. * By law, STRS has 30 days to provide a determination. The employer may submit, but STRS cannot approve, a request prior to a retirement date entered in the STRS system.
Always check the CalSTRS website for the latest information and forms on this subject. For questions, please contact CalSTRS Postretirement at postretirement@calstrs.com<mailto:postretirement@calstrs.com> or leave a voicemail at 1-916-414-5967.
Regards,
School Business Advisory Services Team Santa Barbara County Education Office
Note: This message was sent on behalf of the School Business Advisory Services Team. Please do not respond to this message. Replies will be routed to an unmonitored mailbox.
To unsubscribe, click here<mailto:sbasfinance@sbceo.org?subject=Unsubscribe>
ED2024-01PostretirementEarningsLimit.pdf