General Rules for Post-Retirement Employment

After retiring from SCERS, you may be able to return to work in a limited capacity without affecting your retirement benefit—but certain rules must be followed. These rules exist to protect the integrity of the pension system and ensure that retirement is a true separation from service.

This section provides an overview of when post-retirement work is allowed, what restrictions apply, and how your SCERS benefit could be impacted.

Key Principles

Under federal tax regulations, California law, and SCERS policy:

  • Retirement requires a bona fide separation from service.
  • Returning to work for a SCERS-covered employer too soon or in the wrong capacity may trigger a suspension of your monthly benefit.
  • Some types of work are allowed, but with strict limits on timing, duration, and role.
  • You cannot have received unemployment compensation during the preceding 12-month period.
  • Reemployment is not available if you received an employer-provided incentive to retire.

Where You Can Work

You may work after retirement:

  • For a non-SCERS employer with no restrictions from SCERS 
  • For a private 3rd party that has a contract with a SCERS-covered employer so long as the work performed by the retiree is unrelated to the contract or employer 
  • For a SCERS-participating employer  only under specific conditions
  • For a SCERS-participating employer by suspending your retirement allowance and returning to work in your old job:
    • Your retirement benefits will stop, and you will return to your previous membership category and benefit tier 
    • You will earn additional service credit and make contributions
    • You can re-retire at any time 
    • A new retirement benefit will be calculated based on your age, service and final compensation during the period of reemployment 
    • SCERS will add any missed COLAs during your period of suspension to your original retirement benefit and add the new retirement benefit and restart payments

Working for a SCERS-covered employer without meeting the legal requirements may result in your retirement being revoked and your benefits being suspended.

How It Affects Your Retirement

Depending on your role and hours worked:

  • You may continue to receive your SCERS benefit uninterrupted (if compliant)
  • You may be required to stop your benefit and reinstate as an active member
  • You may trigger an overpayment if you exceed allowed hours or return too soon

These outcomes are based on whether you meet criteria such as:

  • A 180-day break in service (required in most cases)
  • Staying below the 960-hour annual limit
  • Adhering to the limited duration requirement as defined by SCERS policy

Notifying SCERS

Before returning to work with a SCERS-covered employer:

  • Talk to your prospective employer’s HR department.
  • Contact SCERS to confirm whether your retirement type and the position qualifies under post-retirement employment rules. 
  • If you will return to active, permanent employment and suspend your retirement allowance, submit Application for Suspension of Retirement Allowance (Form 2010a) and supporting employer documentation to SCERS with two weeks’ advance notice.  

SCERS may audit post-retirement employment and will coordinate with participating employers to enforce compliance.