Does the start of a second career sound enticing? Want to supplement your retirement income? You might consider working part-time or full-time during your retirement years. But first there are some basic rules that you should be aware of, so that you can protect your CalPERS retirement benefits.
(This information is limited to those of you working after service retirement. The laws regarding working after a retirement for a disability or an industrial disability are more complex and aren’t covered here. Read Employment After Retirement (PUB 33) (PDF) for important details.)
Working for a Non-CalPERS Employer
Do you want to work part-time at a local hardware store, or maybe go back to work full-time in a new career? CalPERS retirees can work for a private industry employer (not associated with a CalPERS employer), or for an employer in another public pension system without reinstating from retirement.
There are no limitations if you decide to work for a non-CalPERS agency, and you do not need permission from CalPERS. However, if you’re drawing Social Security benefits, you should contact the Social Security Administration at (800) 772-1213 to ask how working after retirement may affect your Social Security benefits.
Working for a CalPERS Employer Full-Time
If you plan to return to permanent full-time employment for a CalPERS-covered agency, the retirement law requires you to first reinstate from retirement. Reinstatement involves completing the appropriate paperwork and getting prior approval from CalPERS.
Working for a CalPERS Employer Part-Time
In certain instances, you may work for a CalPERS-covered employer without reinstatement; however, you must meet the following conditions when you return to work as a retired annuitant:
- Your employment is limited duration and must be either during an emergency to prevent stoppage of public business or because you have skills needed in performing work of limited duration;
- Your pay rate for your employment may not be less than the minimum, nor more than the maximum, paid to other employees performing comparable duties;
- The combined amount of time you may work for all employers may not exceed 960 hours per fiscal year July 1 through June 30); and
- You cannot be employed as a retired annuitant for a period of 180 days after your retirement date unless you qualify for an exception. See PUB 33 for a list of exceptions.
If you’re considering returning to work and have questions, see Employment After Retirement (PUB 33) and Reinstatement From Retirement (PUB 37), which provides additional information about working after retirement. You can also find more information on our website under Working After Retirement.
Related Posts
FAQs
CalPERS retirees can work for a private industry employer (not associated with a CalPERS employer), or for an employer in another public pension system without reinstating from retirement. There are no limitations if you decide to work for a non-CalPERS agency, and you do not need permission from CalPERS.
Is it worth going back to work after retirement? ›
Reasons to return to work after retirement
Working can be an excellent way to add variety and purpose to your retirement. Additionally, a new job could help you explore a new field, help others and challenge yourself.
Why do you want to work for CalPERS? ›
People are drawn to work at CalPERS for a number of reasons, including: A variety of work and opportunities for career growth. Inclusive atmosphere and emphasis on communication at all levels. Personal job satisfaction working in public service.
What is the disadvantage of working after retirement? ›
Risks of Working After Retirement
If you choose the wrong job, you may feel drained physically and emotionally. If you decide to take on a part-time job and end up stressed and fatigued, don't feel funny about resigning from it. Look for another job that's a better fit. Unintended financial impacts.
How does working after retirement work? ›
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.
What are the pros and cons of going back to work after retirement? ›
Advantages to working as a retiree might include earning extra income to help pay expenses, preventing boredom, and making social connections. However, there are possible disadvantages to consider as well, including a potential impact on Social Security benefits and taxes, and less free time.
What percent of retired people go back to work? ›
Rowe Price's latest annual “Retirement Savings and Spending Study” found that about 20 percent of retirees are working either part- or full-time.
Can you work after you retire from CalPERS? ›
CalPERS retirees can work for a private industry employer (not associated with a CalPERS employer), and/or for an employer in another public pension system without reinstating from retirement.
What is the average CalPERS retirement? ›
The average annual CalPERS pension for all retirees who retired with a service retirement is $42,516, which breaks down to more than $3,500 per month. Overall, 61.6% of all CalPERS service retirees receive $3,500 a month or less, while only 6.4% receive more than $9,000 per month.
How many hours can a CalPERS retiree work? ›
You can't be paid any other compensation or benefits in addition to the hourly pay rate. Without exception, a maximum of 960 hours can be worked within a fiscal year (July 1 to June 30). Nonpaid or volunteer hours can't be used to exceed 960 hours in a fiscal year.
Retirees may choose to go back to work either for financial reasons or for social and emotional benefits.
What is a good income after retirement? ›
Financial planners often recommend replacing about 80% of your pre-retirement income to sustain the same lifestyle after you retire. This means that, if you earn $100,000 per year, you'd aim for at least $80,000 of income (in today's dollars) in retirement.
Why more retirees are going back to work? ›
Returning to the labor market also has social and mental health benefits. Some retirees miss the social interactions and sense of purpose they get from working. After the initial joy of retirement wears off, some find they want more mental stimulation and engagement, and work provides that.
Are people happier after retirement? ›
About 67% of retirees who are 15 years or less into retirement said they're happier since retiring, and 82% said they're more relaxed on a typical day. While only 8% report feeling less happy in retirement, about a third said they're not more happy than they were before leaving the workforce.
