Want to return to work in the California public school system—including substitute teaching? Whether you return as an employee, an employee of a third party or an independent contractor, you’re subject to restrictions under state and federal law, including a separation-from-service requirement and an annual postretirement earnings limit.

If you retired and want to continue receiving your full CalSTRS retirement benefit, you cannot do the following in the California public school system (prekindergarten through community college):

• Earn any pay by returning to work before you meet the 180-calendar day separation-from-service requirement.
• Earn more than the annual postretirement earnings limit.
• Return to work within five years of retirement with your employer if they offered—and you received—the additional service credit under the CalSTRS Retirement Incentive Program.

You can continue to receive your full CalSTRS service retirement benefit with no earnings limitations if you take a job outside of CalSTRS-covered employment.

You’ll continue receiving your full benefit if you work for:

• Private industry outside the California public school system.
• A private school.
• A public school outside of California.
• The University of California or California State University system.

Keep in mind that if you’re also a member of another public retirement system, their rules and earnings limitations may also apply.

Make sure you give it time after retirement before you start working again—180 calendar days, at least. Your retirement benefit will be reduced dollar for dollar by the amount you earn in CalSTRS-covered employment during the first 180 calendar days following your most recent retirement effective date—up to your benefit amount payable during that period. 

There is a very narrow exemption from the 180-calendar day separation-from-service requirement if you meet all the following criteria:

• You’ve reached normal retirement age—age 60 for CalSTRS 2% at 60 members and age 62 for CalSTRS 2% at 62 members.
• Your appointment is necessary to fill a critically needed position.
• You did not receive any financial incentive to retire.
• Your termination of employment is not the basis for the critically needed position.

To qualify for an exemption, your employer must submit an exemption request and required documentation before you begin working. If approved, this exemption only applies to the separation-from-service requirement.

Additionally, to qualify for an exemption from July 1, 2024, through June 30, 2026, your employer must not have had reduction-in-force layoffs within the prior 18 months. Different requirements apply for exemption requests submitted before July 1, 2024, and after June 30, 2026.

In summary, unless you meet very narrow requirements and receive an exemption, wait 180 calendar days before returning to work in the California public school system if you want to continue receiving your full CalSTRS retirement benefit.

If you’re returning to CalSTRS-covered employment, you must keep the annual postretirement earnings limit in mind.  You’ll continue receiving your full CalSTRS retirement benefit if you return to work after meeting the separation-from-service requirement and do not earn more than the earnings limit.

The Teachers’ Retirement Board, which administers CalSTRS, adjusts the earnings limit annually, so make sure you check the amount each year.

See the latest earnings limit.

Any amount you earn in a position covered by CalSTRS during the first 180 calendar days of retirement will also count against the annual postretirement earnings limit for the appropriate fiscal year.

If your covered earnings exceed the postretirement earnings limit, you will not receive your full monthly retirement benefit until we collect your excess earnings in full. The amount collected includes the amount of your annual retirement benefit minus any previous reduction due to the separation-from-service requirement.

For example: The earnings limit for the 2025–26 school year is $80,245. If you return to a position covered by CalSTRS in the 2025–26 school year after the first 180 calendar days following retirement and earn $80,500, you’ll have exceeded the 2025–26 annual earnings limit of $80,500 by $255. If your annual retirement benefit is $255 or more, you’ll receive $255 less in your total benefit payments for that year.

In summary, know the limit and do not exceed it to receive your full retirement benefit.

 If you’re working in the California public school system after you retire, be sure to track your earnings.

Employers report retiree earnings to CalSTRS and have 45 days after the end of the pay period to submit the information to us. As you approach the limit, we’ll send you two letters letting you know where you stand.

If you exceed the earnings limit, we’ll send you a letter informing you that excess earnings will be deducted from your retirement benefit.

You may be excluded from the earnings limitations and other postretirement employment requirements if both of the following apply to you:

• You return to work in the California public education system, and your employment relationship is with a third-party employer that does not participate in a California public pension system.
• The activities performed are not normally performed by employees of a CalSTRS employer, and the assignment is performed for 24 months or less.

Check with your employer and the California public school or county office of education where you’re working to determine if you’re subject to this exclusion.

Here are some considerations regarding the Cash Balance Benefit Program:

• Retired Cash Balance Benefit Program participants are not subject to the annual postretirement earnings limit.
• If you receive your Cash Balance Benefit Program retirement benefit as an annuity, you’re also subject to the 180-calendar day separation-from-service requirement.
• If you receive your Cash Balance Benefit Program retirement benefit as a lump sum, in most cases your benefit will not be payable until 180 calendar days after the date you terminated employment, and your benefit will be canceled if you perform creditable service within the required waiting period. The waiting period may vary for participants who are subject to the federal required minimum distribution rule.
• If you’re a retired member of the CalSTRS Defined Benefit Program and return to work in postretirement, you cannot contribute to the Cash Balance Benefit Program.

If you volunteer in a California public school or county office of education, be aware that an employment arrangement that involves volunteering in a position that would otherwise be creditable to CalSTRS—such as volunteering to serve as a school principal—may be in violation of the postretirement earnings limitations.