Post-Retirement Employment

Post-Retirement Employment


Any retiree considering returning to work with an SBCERA participating employer should contact SBCERA before working.

The Public Employees’ Pension Reform Act of 2013 (PEPRA) imposes restrictions on the ability of a retiree to work for an employer in a retirement system while also collecting a pension from that system. In addition, existing state and federal laws already placed restrictions on employees who return to work. 

Post-Retirement Employment

Retiree Work Restrictions

  • Work cannot exceed 960 hours in a fiscal year.
  • No retiree may work for an employer in the same system if they have received unemployment insurance compensation arising out of that relationship in the prior 12 months.
  • The re-employment position must be one of limited duration.
  • Safety Members under age 50 may not return to work at any SBCERA-covered employer, in any capacity, within 60 days of termination.
  • General Members (at any age) may not return to work at any SBCERA-covered employer, in any capacity, within 180 days of termination.

In January 2015 the SBCERA Board of Retirement adopted a policy that allows SBCERA to monitor SBCERA retirees who return to work for an SBCERA-covered employer in order to ensure that benefits are paid to re-employed retirees when, and only when, such payments comply with the law. When re-employment violates applicable limits, proper action must be taken. Subject to Board action, this may include, but is not limited to, reinstatement to active membership, suspension of benefits, recovery of improperly paid benefits and the collection of contributions owed.

According to SBCERA policy, any member who retires after the policy was implemented and returns to work for an SBCERA-covered employer, the following must occur:

  • The employer and the employee must report the employment to SBCERA before the employee starts.
  • The employer and employee must sign an acknowledgement of, and intention to comply with, the applicable Government Code sections and the policy.
    • The employer must provide an explanation of the limit or limits on the duration of the re-employment.
    • If the term of employment is stated to be 18 months or less, it will be presumed to be compliant.
    • If the term is over 18 months or there is no specific end date, re-employment must be approved by the Board of Retirement. If it is the functional equivalent of a permanent part-time position, the employer and the employee may cease to be in compliance.

For any member who already retired and returned to work before the policy was implemented:

  • Retirees shall be treated as if their return to work commenced on the effective date of the policy.
  • All aforementioned documentation shall be submitted as soon as practicable.

The summary provided herein is not all-encompassing. The code provisions, by-laws, and policies govern. 

Returning Retiree Policy and Certification Form

All SBCERA retirees returning to work in any capacity must be authorized by SBCERA using the Returning Retiree Certification form.

Government Code section 7522.56 provides specific employment restrictions for retirees who return to work with an employer in the same public retirement system from which they receive a benefit. These restrictions are intended to prevent the “double-dipping” of a retiree receiving a monthly SBCERA retirement benefit while also receiving compensation for employment with an SBCERA-covered employer.

Employer: Use this form to report the details of any return-to-work arrangement with an SBCERA retiree prior to the retired member commencing re-employment. Once you have completed the sections that apply, provide the form to the retiree for review and signature.

Retiree: You are required to review and sign this form prior to your commencement of re-employment with an SBCERA-covered employer.

Returning Retiree Certification Form

Retirees Returning to Work Policy

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