AR 4117.14 — POSTRETIREMENT EMPLOYMENT

Personnel AR 4117.14(a)

POSTRETIREMENT EMPLOYMENT

When necessary, the Board of Education may hire a qualified retired certificated individual
who possesses the knowledge and experience needed to perform creditable service for
the District as an employee, the employee of a third party, or an independent
contractor/consultant, provided that all applicable restrictions specified by the California
State Teachers’ Retirement System (CalSTRS) are met. Applicable CalSTRS restrictions
include, but are not limited to, a requirement that a retired member be paid compensation
comparable to that for active employees for comparable duties and prohibitions against
the hiring of a retired member within 180 days of his/her retirement and for the classified
service, except as an aide pursuant to Education Code 45134. Additional restrictions and
rules may apply to other employment situations, such as when CalSTRS retired members
are employed as employees of third parties, independent contractors, or consultants. The
Superintendent or designee should consult legal counsel when dealing with such
employment situations. (Education Code 22119.5, 22164.5, 24214, 24214.5)

(cf. 4111/4211/4311 – Recruitment and Selection)
(cf. 4112 – Appointment and Conditions of Employment)

Any retired member of the defined benefit program of CalSTRS who is hired by the District
to perform retired member activities as defined pursuant to education Code 22164.5 shall
be paid at an annualized rate of pay that shall not be below the minimum or exceed the
maximum paid to other District employees performing comparable duties. However, such
a retired individual shall not make contributions to the CalSTRS retirement fund or accrue
service credit based on compensation earned from the retired member activity.
(Education Code 24214)

No retired member of the CalSTRS defined benefit program shall be hired by the District
for at least 180 calendar days after his/her retirement from service, unless he/she has
attained the normal retirement age and qualifies for an exemption to the 180-day waiting
period. To seek this exemption, the Board shall, during the open session of a Board
meeting, adopt a resolution which shall include the following information and findings:
(Education Code 24214.5)

1. A statement expressing the Board’s intent to seek an exemption to the 180-day
waiting period

2. A description of the nature of the employment of the retiree

3. A finding that the retiree has reached the normal retirement age

4. A finding that the appointment of the retiree is necessary to fill a critically needed
position before the 180-day waiting period has passed
 AR 4117.14(b)

POSTRETIREMENT EMPLOYMENT (cont.)

5. A finding that the retired individual did not receive additional service credit pursuant
to Education Code 22714 or 22715 or any financial inducement to retire. Financial
inducement to retire shall include, but is not limited to, cash or any form of
compensation or other payment directly or indirectly paid by any public employer
to the retired individual before or after his/her retirement, if the individual retires for
service on or before a specific date or range of dates established by the public
employer on or before the date the inducement is offered

6. A finding that the retied individual’s termination of employment with the District is
not the basis for the need to acquire the services of the retired individual

The resolution shall not be adopted through the Board’s consent agenda. (Education
Code24214.5)

(cf. 9320 – Meetings and Notices)

When employing a retired individual who is eligible for exemption from the180-day waiting
period, the Superintendent or designee shall submit all required documentation to
substantiate eligibility for the exemption to CalSTRS before the retied member begins
performing any retired member activities. The Superintendent or designee may contact
CalSTRS to request information as to whether the retired member qualifies for the
exemption after 30 days of submitting the required documentation to CalSTRS.
(Education Code 24214.5)

Postretirement Compensation Limitation, Notice, and Report

All CalSTRS retirees performing creditable service for the District shall be subject to the
applicable CalSTRS earnings limit.

Monies earned in excess of the limit may be subject to the CalSTRS retiree to a reduction
in his/her retirement allowance. Compensation subject to the earnings limitation includes
but is not limited to, salary or wages, deferred compensation plans or contributions when
the cost is covered by a District. (Education Code 22119.5, 22164.5, 24214)

Whenever the District retains the services of a CalSTRS retiree as a District employee,
employee of a third party, or an independent contractor, the Superintendent or designee
shall: (Education Code 22461, 24214)

1. Advise the retired individual of the postretirement earnings limitation or
employment restriction set forth in Education Code 22714, 24214, or 24214.5 or
any other applicable law
 AR 4117.14(c)

POSTRETIREMENT EMPLOYMENT (cont.)

2. Maintain accurate records of the retired individual’s compensation and report it
monthly to CalSTRS and the individual, regardless of the method of payment or
the fund from which the payments are made

Legal Reference:
EDUCATION CODE
22119.5 Creditable service, definition
22131 Employer; employing agency, definition
22164.5 Retired member activities, definition
22461 Notice of earnings limitation
22714 Encouragement of retirement
22715 Additional service credit
22716 Unpaid services
24214 Creditable service by retiree
24214.5 Postretirement compensation limit; members below normal retirement age
26113 Creditable service, definition
35046 Consultancy contracts
44830 Employment of certificated employees
44830.3 Employment of District interns
44929 Service credit under STRS; additional two years
44929.1 2+2 service and year credit option under STRS
45134 Age limits
CODE OF REGULATIONS, TITLE 5
27000-27009 Penalties and interests for late remittances and late and unacceptable reporting by employers

Management Resources:
WEBSITES
California State Teachers’ Retirement System; www.calstrs.com

Chino Valley Unified School District
Regulation approved: November 16, 1995
Revised: August 13, 2015