APRIL 13-16, 2016 Employment After Retirement Session # HR ... RET23.pdf · APRIL 13-16, 2016...

APRIL 13-16, 2016Employment After Retirement

Session # HR 23/Ret 23April 15, 2016

THESE MATERIALS HAVE BEEN PREPARED BY (ENTER PC OR COMPANY NAME HERE) THEY HAVE NOT BEEN REVIEWED BY STATE CASBO FOR APPROVAL, SO THEREFORE ARE NOT AN OFFICIAL

STATEMENT OF CASBO

Employment After Retirement

Presented By: Veena ChaudhriCoordinator Retirement Systems, Support Services

Orange County Department of EducationEmail: [email protected]

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April 15, 2016CASBO Annual Conference

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2016 CASBO ANNUAL CONFERENCE & CALFORNIA SCHOOL BUSINESS EXPO 3

This workshop material provides the employment options available to school retirees . The statements in this presentation are for your information and use. This information is based on currently known facts. However, CalPERS, CalSTRS & IRS updated regulations/laws will always supersede the statements presented in this workshop.If there is a conflict between this presentation and the law, decision will be based on the law and not on the information provided in this presentation.CASBOThese materials have been prepared by the CASBO Retiree Professional Council (or CASBO Associate Member). They have not been reviewed by State CASBO for approval, so therefore are not an official statement of CASBO.

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Agenda/PurposeRehire Options of a Retiree

Work in a Private Sector

Work as an Independent Contractor

Employment after CalPERS Retirement

Employment after CalSTRS Retirement

Social Security

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Materials Overview“Employment of a Retiree” Handout

Updated/Additional Related Information is available on Websites

CalPERS Employment after Retirement (www.CalPERS.ca.gov)

Reinstatement From Retirement (www.CalPERS.ca.gov)

CalSTRS Member Handbook- Employment after Retirement (www.CalSTRS.com)

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So you’ve retired and you are thinking about returning

to the work force - - - - -

1st StepAsk yourself this question.

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ARE YOU CRAZY??????

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Everything is changing continuously

Only thing Constant is the…

Change

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Change in our life styleFew Years ago, when employees retired

It Meant……..- Done with the Working phase of life-Spend Golden years with family/friends-Travel time-Hobbies, etc.

Now there is a change in life style…….Do all of the above and +++

- Maybe work Part time in similar or different jobs-Retirement allowance is now another source of

Income (Additional/supplemental Income) - Work to Keep Busy & Mentally Alert

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Retiree Employment

Why has employment after retirement received so much attention? Increased publicity of pension systems. Increased number public cases involving improper

conduct and/or “gaming the system”. Efforts by Legislature to encourage hiring of full-time

staff. Increased efforts by pension systems to locate working

retirees. Audits at the State-level have revealed holes in

compliance-related activities of pension systems.

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California Public Employees’ Pension Reform Act of 2013 (PEPRA)

Brought about a New Era… which direction to go from there

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Era of Retirees Reemployment Rules


Era of Retirement Changes 2012-2013 was the first year when so many major changes have been implemented affecting CalPERS & CalSTRS.

Public Employees’ Pension Reform Act (PEPRA) became effective January 1, 2013.

For CalPERS RetireesGovernment Code sections 7522.56 & 7522.57 were added by PEPRA. Government Code sections 21229 & 21221(h) were amended by SB1021 on 6/27/2012.

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Option 1 - Private Sector Employment

Option 2 - Independent Contractor Private or Public Employer

Option 3 - Non Certificated Position

Option 4 - Certificated Position – Requires a Credential or Permit

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Option 1-Work in a Private Sector

No limitations or Restrictions apply from CalPERS or CalSTRS

Social Security limitations may apply based on the retirement age*.

- If collecting Social Security benefit & retired prior to reaching full retirement age.

* Retirement age is published by Social Security office depending on year of birth.

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Option 2Guidelines for Independent Contractors

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Who is an Independent Contractor?

A worker who the payer has a right to control or direct only the result of the work done, and not the means and methods of accomplishing the result.

Refer to IRS Publication for details : www.irs.gov

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How do you determine who is an employee and who is an independent contractor? When determining whether an individual is an employee

or an independent contractor, the relationship of the worker and the payer must be examined.Within the working relationship, the areas to look at 20

common law rules- Derived from case law1) behavioral control,2) financial control,3) the actual relationship between the two.

CalPERS refers to the Common Law Control factors & applicable Government Code statutes when determining Employee VS Independent Contractor status.

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What is the difference between an employee and an independent contractor?

Basic Difference: Between the two is Control

From Employee:An employer must generally

Withhold Income taxes Withhold and pay Social Security and Medicare taxes Pay Unemployment tax (if applicable)

on wages paid to an employee.

Independent Contractor: An employer does not generally have to

Withhold or pay any taxes on payments to independent contractors. Independent contractors are self-employed individuals.

Refer to IRS Publication 15-A for details

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Does the firm/district have a legal right to direct and/or control the work you will be doing?

-Are You Acting

On Behalf of thefirm/District?

Is the Service you are providing an integral part of district operations?

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Is the work you will be doing currently or previously been done by an “employee”?

Do you meet IRS guidelines for operating like a business?

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Making a Determination of Worker Status

For purposes of Federal Employment Taxes and IncomeTax Withholdings

Submit IRS Form SS-8 Can be submitted by worker or District Decision By IRS is Binding

IRS Form SS-8: Determination of Worker Status for Purposes of Federal EmploymentTaxes and Income Tax Withholdings

IRS website: www.irs.gov

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Retirees Working as Independent Contractors

Retirees should not be hired as an Independent Contractors if:

They are coming back in an “interim”position or a position that has been established as an employee positionException :GC21221

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Category of worker classified as an “employee” by IRS- IRS Pub SWR 40Administrator ASB WorkersAthletic CoachesCafeteria WorkerCategorical program Clerical StaffCounselorsExamination MonitorsInterim PositionsProctors

LibrariansNursesPsychologistsSchool Bus DriversSubstitute

Teachers/InstructorsSpecialty Teachers (art,

poetry, etc.)Teachers/InstructorsTutors

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Reporting to CalPERS is not a requirement

CalSTRS Retirees are subject to CalSTRS rules:

Postretirement Earnings Restrictions

Reporting to CalSTRS is a requirement– ED Code 24214(a)

Social Security limits apply based on retirement age – Self Employed Rules

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CalSTRS Retirees working with CalSTRS Employer as an Independent Contractor

Subject to all the laws that were in effect prior to passage of PEPRA (AB 340)

Reporting to CalSTRS is a requirement

CalSTRS Retirees are subject to CalSTRS postretirement earnings restrictions

2015-16 $40,321 2016-17 $41,732ED Code 24214(a)Zero dollar limit for first 180 days of retirement if the most recentretirement is after 2012 (PEPRA AB340)


True Independent contractors are not subject to the post employment retirement law requirements such as:

No 180 day wait period restriction No 960 Hours limit No Compatible pay rate No enrollment in PERS system

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Questions

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If You Don’t Qualify to Be Hired As an Independent Contractor

The Following May Apply…

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Option 3

Employment after CalPERS Retirement

PERS Circular # 200-002-14, dated 01/14/2014

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Private IndustryIndependent contractor if applicable

Certificated position – *Contact PERS as PERS is revisiting PEPRA Changes

PERS is reviewing PEPRA changes applicable to PERS retirees accepting Certificated job- May be subject to PERS rules STRS is suggesting to check with PERS

Exception: Restrictions apply if a Certificated employee who elects to remain in CalPERS & then retires and accept a limited duration Classified/Certificated job in school system.

Classified Position in a CalPERS covered agency

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PERS Retiree Hired in a Certificated positionPEPRA changes are applicable to PERS Retirees If PERS Retiree accepts a STRS qualifying job.oIt can impact PERS Retiree’s benefit & might

result into mandatory reinstatement.oHave retiree check with PERS and STRS. If a PERS Retiree accepts a STRS non qualifying Job.oPERS employment after retirement rules apply.o180 day waiting period, limited duration work,

comparable pay rates, 960 hours limitations, etc.

o Enroll the employee into PERS system.


Public Employees’ Pension Reform Act (PEPRA)-SB340

Effective January 1, 2013,

180-day wait period applies only where the post-retirement employment occurs with an employer in the same public retirement system from which the retiree retired

The exclusion to this rule:

A retiree that is appointed to a state board or commission.

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PERS Retiree Employment- 180 Day Exceptions

The School employer’s, County Office of Education, presents CalPERS with a resolution, passed in a public meeting that approves the appointment in which the employer has certified the nature of the employment and established that appointment is necessary to fill a critically needed position before 180 days have passed.

The appointment may not be placed on a consent calendarDisqualification for an Exception to the 180-day wait

period:

The 180-Day wait period applies without exception if the member received a Golden Handshake or some other employer incentives to retire

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Resolution For Exception To The 180-Day Wait Period (GC§7522.56(f)(1) For School employers, the school district’s county office of education is the governing

body that must pass the resolution The Certification & resolution should be received by CalPERS prior to the retiree’s hire

date PERS does not mail approved 180 day exception resolution notification

Mail the Resolution to:CalPERS Benefit Services Division

Attn: BNSD Post Retirement Unit 470

P O Box 942711

Sacramento, CA 94229-2711

Email: [email protected]

Enclose the following items with the Resolution: Employee & Employer’s CalPERS ID. Copy of the employment agreement or appointment paperwork. Copy of Salary Schedule for comparable position. Information about Recruitment process if hired as “Interim” under section 21221(h).

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Resolution for Exception to the 180-Day Wait PERIOD

Federal Requirement- Service Retirees only

There must be no pre-determined agreement (either verbal or written) to return to employment as a retired annuitant between the member and a CalPERS employer prior to retirement.

AND

There is a Bona-fide Separation from service of 60 calendardays between the members retirement effective date and the date the employment as a retired annuitant will begin.

GC 21220.5 Circular Letter 200-181-04

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The Formula used for Retirement Benefit Allowance Calculation for school members is as follows:

Classic Old Members - 2% at 55 PEPRA New Members - 2% at 62

“Normal Retirement Age” for school members

= 55 if all of the retiree’s service is under the 2% at 55= 62 if all of the retiree’s service is under the 2% at 62

Note: If the retiree has service credit with other employers which has a different retirement formula such as 1 & 1/¼% under 65, the retirees“Normal Retirement Age is 65.

Refer to Circular letter 200-181-04 at www.calpers.ca.gov

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CalPERS Post Retirement Employment - SB 1021

Government Code Sections 21221(h) and 21229 were amended on 6/27/2012.

Retirees may be employed up to 960 hours in a fiscal year accumulative all PERS employers. There is no provision in the law to allow retiree to “volunteer” hours while employed.

Compensation (i.e., rate of pay) for retirees shall not be less than the minimum or greater than the maximum paid to employees performing comparable duties.Calculate hourly pay rate by dividing monthly base salary by 173.333 Retirees shall not receive any additional benefits, incentives, compensation in lieu of benefits or other compensation in addition to hourly rate. Retirees can work more than one fiscal year.

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CalPERS Post Retirement Employment Section 21221(h), 21229 & 7522.56

The employment is during an emergency to prevent stoppage of public business.

Retirees can be hired to perform work of limited duration. Limited duration means the appointment is not for an indefinite period of time. It should have a begin date & an end date.

Retirees have the specialized skills needed by the district for a limited duration.

Part-time permanent jobs require reinstatement into the PERS system.

Enroll retirees into my/CalPERS system.

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CalPERS Retiree Employment - Section 21229

Retirees can work Extra help Elimination of backlog Special projects Work in excess of what the employer’s permanent

staff can do. The work a retiree performs should supplement the work of a regular staff.

Report the retirees’ hourly pay rate, earnings & hours to the my/CalPERS system.

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CalPERS Post Retirement Employment Under Government Code Section 21221(h)

It is used when the governing body of the contracting agency appoints a retiree to a vacant position during recruitment for a permanent replacement. (Open recruitment for a permanent replacement required).

It is generally used for high level management, a director or executive position.

This section permits the interim appointment only once but, the term of the appointment can be longer than one year. Employment terms must specify an end date & cannot amend or extend the appointment term.

The retiree can work 960 hours total for all employers in a fiscal year.

Report the retirees’hourly pay rate, earnings & hours to the my/CalPERS system.

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True Independent contractors are not subject to the post employment retirement law requirements such as:

No 180 day wait period restriction. No 960 Hours limit. No Compatible pay rate. No enrollment in the PERS system.

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Employment or co-employment through a third party employer

Your employment is subject toCalPERS restrictions while

working under CalPERS employer even though you get paid by the Third party

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Mandatory Reinstatement If A Retiree is employed without meeting 180 day wait

period & without an allowable exception.A Retiree who received Golden Handshake or any

other retirement related incentive & did not comply with 180 day wait period.Retired annuitant worked more than 960 hours. Not in compliance with common law employment

test – Independent contractors.A Retiree hired as a permanent appointment, GC

§21229.A Retiree hired more than once under GC § 21221(h)

– Interim Appointment.

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PERS Retiree’s Responsibility before accepting employment

1. Check if it is CalPERS employer.2. Inform Employer you are PERS Retiree.3. Employment is in compliance with PERS law.

If employment is in violation of PERS law:

May be mandatory reinstatement retro active to date of unlawful employment.

Reimburse Retirement Allowance. Pay Member’s contributions + Interest+ Administrative

expenses.

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Employers who filled the position in violation of PERS law:

Employer contribution retroactive back Interest Administrative Expenses

GC 21220/21202/21200

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Unemployment Insurance compensation based on prior retired annuitant’s employment

Triple Dipping

1. PERS Retirees Benefit

2. Retiree Annuitant Income(960 Hours)

3. Unemployment InsuranceBenefits (UI)

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Circular Letter 200-076-06 at www.calpers.ca.gov

If you are paid Unemployment Insurance benefits for work as a Retired Annuitant.

PERS law requires that Retired person not be hired by the any CalPERS employer at least for 12 months following their previous employment termination date.

Retirees must certify in writing that he/she did not receive any unemployment insurance payments within 12 months prior to this appointment for previous retired annuitant work with any CalPERS employer.

-GC 21229

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http://www.calpers.ca.gov/


UI Benefits Paid to the Retiree.

Terminate the Retiree.

Don’t hire retiree for 12 months from the termination date (12 months following the last day of employment).

GC 21229

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Contact CalPERS Special Rules Apply

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CalPERS Disability Retiree hired by Employer Covered by CalPERS. Retirees can work for 960 hours in a temporary position – No

approval required.

Employment with non-CalPERS Employer No limit on number of hours. Prior approval is not required. Earnings limit apply to retirees receiving a disability(non-

industrial retirement) if under age 50. Permanent full time position with Earning limit if under age

50 (disability retiree non- industrial). Send “Disability Retiree’s Report of Earnings Outside

Employment” to PERS if under age 50.Note: Employment must be consistent with the physical/mental

condition of the person’s disability: e.g., individual cannot perform tasks for which he/she is disabled.

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Employment in a permanent position with CalPERS Employer.

Employment must be in different a position.

CalPERS approval required before accepting employment.

Earnings limitation applies.

Complete application “Request To Work While Receiving Disability/Industrial Disability Retirement Benefits (Over 960 Hours)”. GC 21228

Provide medical report & job description to PERS.

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Reinstatement is permissible in CalPERS

Complete “Reinstatement from Service Retirement Application” form or “Reinstatement from Disability/Industrial Disability Application” form.

PERS approval required

Effects of Reinstatement

May lose Medical Coverage. Will lose Additional Service Credit under Golden

Handshake. Will have to re-request Temporary Annuity payments at re-

retirement.

** Refer to Reinstatement from Retirement

Publication (PERS-PUB-37)**54


Retired as Board Member and receiving CalPERS benefit. Re-elected as a Board member can serve without

reinstatement.-- Board Members cannot be reinstated because of break in service.

** The retirement allowance that is based on service as a Board member shall be suspended during the incumbency. GC 21222

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Overview of PERS Retirees Employment After waiting for 180 days, a retiree can work up to 960

hours in a fiscal year and still receive PERS benefit allowance. Job must meet all the of the requirements for retired

annuitant work. Not paid any other benefits in addition to hourly pay rate

within the salary schedule for the position. If retired on a service retirement, a retiree can work for a

non-CalPERS employer without any restrictions and still receive PERS allowance. No need for PERS approval. Returning to a permanent, part-time or full-time work

with a CalPERS employer will require to reinstate from retirement. Must have a firm start date or hire date in order to

reinstate from service retirement into active employment.

Questions

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Option 4STRS Employer Directive 2016-03

(Contains Exemptions from the CalSTRS Earnings Limitations)

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Private Industry & Schools, Public Schools outside CA, University of CA or CA State University system or UCI.

Independent Contractor, if applicable.(Subject to CalSTRS Earnings limitation)

In a Classified position in a public school system if meets the requirement of:Education Code 45134(C) or 88033©

“Instructional (Teacher’s) Aide” Position.

In a Certificated position – Earnings limitations & Exemptions apply.

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Private Industry & Schools, Public Schools outside CA, University of CA or CA State University system or UCI.Independent Contractor, if applicable.(Subject to CalSTRS Earnings limitation)In a Classified position in a public school system if meets the

requirement of:Education Code 45134(C) or 88033©

“Instructional (Teacher’s) Aide” Position.• In a class with a high pupil-teacher ratio.• Is needed to provide one-on-one instruction in remedial classes

or for underprivileged students.In a Certificated position – Earnings Limitations & Exemptions

apply. 60


PERS Retiree Hired in a Certificated position

PEPRA changes are applicable to PERS Retirees If PERS Retiree accepts a STRS qualifying job.

o It can impact PERS Retiree’s benefit & might result into mandatory reinstatement.

oHave retiree check with PERS and STRS.

If a PERS Retiree accepts a STRS non qualifying Job.oPERS employment after retirement rules apply.o180 day waiting period, limited duration work,

comparable pay rates, 960 hours limitations etc.o Enroll the employee into PERS system.


STRS Employer Directive

Purpose of the Employer Directive:

Inform employer of the post retirement earnings limitations.

Legislative changes to the post retirement earnings law. Employer’s responsibility to inform CalSTRS retirees

about earnings limitations. (Section 22461) Employers to report post retirement earnings with

correct codes to CalSTRS. (Section 22461) Financial implications of exceeding the earnings limit.

(Section 24214(g)) Retirement incentive restrictions & Classified position

restrictions.

62CalSTRS Employer Directive 2016-03:www.calstrs.com


PEPRA (AB 340) RestrictionsRestrictions apply to members who retire on or after January 1, 2013.

The $0 earnings limit applies to all members whose most recent retirement is on or after January 1, 2013, regardless of their age for the first 180 days after the member’s most recent retirement.CalSTRS refers to this restriction as the “Separation-from Service Requirement”.

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Exemption from the Separation from Service Retirement (180 Day, Zero Dollar Limit) STRS Form# SR1897

The retired member must be of normal retirement age (60) when the compensation is earned.

The exclusion from180 day rule applies, if the appointment is necessary to fill a critically needed position.

The governing body of the employer approves the appointment in a public meeting.

The member did not receive any financial incentives to retire.

The member’s termination of service was not the cause of the need to acquire the services of the member.

The Resolution is adopted prior to the retired member performing duties.

The exemption Form# SR1897 must be received by CalSTRS prior to the retired member performing post retirement activities.

CalSTRS notifies Employee/Employer within 30 days of receipt of resolution/documentation whether approved or denied.

If approved, the annual post retirement earnings limit still applies.

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EC 24214.5(a) –Compliance with Federal Law Normal Retirement Age for

2% at 60 CalSTRS members = 60

2% at 62 CalSTRS members = 62

All employees must complete six month separation who retired after 1/1/2013. OR

The retirement benefit is reduced dollar-for-dollar for the first 6 months or until they reach their normal birthday.

For members who retired prior to 1/1/2013-It is age 60 or 6 months.

For members who retire on/after 1/1/2013-It is age 60/62 or 180 days.

The member will be subject to the annual post-retirement earning limit for each fiscal year.

There are no exemptions from this requirement.

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CalSTRS Retirees working with CalSTRS Employer as an Independent Contractor.

All applicable laws applied to post retirement employment applies to Independent Contractor.

Reporting to CalSTRS is a requirement.

CalSTRS Retirees are subject to CalSTRS post-retirement earnings restrictions.

2015-16 Limit $40,321 2016-17 Limit $41,732ED Code 24214(a)

Zero dollar limit for first 180 days of retirement if the most recent retirement is on/after 1/1/2013 (AB 340).

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CalSTRS Earnings Limitation for services performed on behalf of the California Public School System:

July 1, 2015- June 30, 2016: $40,321 July 1, 2016 – June 30, 2017: $41,732

CalSTRS Allows a Limited/Narrow Exemption to the Earnings Limit-Exemption Request (form# SR0164) must be submitted to CalSTRS prior to retiree performing creditable service.

Ed Code 24214 – Exemption will sunset on June 30,2017Disability Retirement Earnings Limit: 2016 Calendar Year - $28,950 (Total Earnings: Public +

Private).

67CalSTRS Employer Directive 2016-03: www.CalSTRS.com


Any creditable earnings identified in Section 22119.5 is reportable as Retiree Earnings such as:Summer SchoolIntersessionMileage/ExpensesDepartment Chair StipendTax Sheltered Annuities/Benefits

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Exemption to Annual Earnings Limit When Working In Distressed Schools

A narrow exemption available for certain appointments to assist schools that are in financial or academic distress.

Request and Required documentations must be received by CalSTRS prior to the retired member performing creditable service.STRS approval required.If postretirement earnings limit exemption

approved, the 180 day separation from service will still apply.

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Exemption to Annual Earnings Limit- Districts in Financial or Academic Distress

Exemption for retired members appointed by: The California Community College Board of Governors. The State Board of Education or the State County

Superintendent of Schools as a fiscal adviser/expert. Superintendent of Public Instruction.

Exemptions extended through June 30, 2017.If the member received any financial incentives to retire, they

are excluded from receiving this exemption.

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Exemption to Annual Earnings Limit- Districts in Financial or Academic Distress

Exemption for retired members appointed by Superintendent as a trustee. County Superintendent of Schools as a fiscal

adviser/expert. The California Community College Board of Governors as

a special trustee. The State Board of Education or the State

Superintendent of Public Instruction as a trustee or receiver.Exemptions extended through June 30, 2017.If the member received any financial incentives to retire,

they are excluded from receiving this exemption.

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Exemption to Postretirement Earnings LimitIn order to qualify for this exemption, the appointing

authority must certify the following: The position was advertised to active or inactive members

and no qualified person was available to be appointment. The appointing authority made a good faith effort to hire a

retired member who would reinstate. The salary being paid does not exceed what was advertised

or is currently paid for that position.

Employers must complete the “Request for Post-retirement Earnings Limit Exemption” Form when applying for this exemption prior to retired member performing creditable service. STRS approval required.


CalSTRS Exemptions To the Earnings Limitation

Effective 7/1/2012:

ALL OTHER EXEMPTIONS TO THE POST-RETIREMENTEARNINGS LIMIT ENDED JUNE 30,2012, such as:

Direct Classroom Remedial Exemption Emergency Exemption 12-Month Break in Service

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Exclusion When Working for a Third Party

Retired members employed by a third party are excluded from the postretirement earnings limit & related provisions provided they meet ALL of the following criteria:The retired member is employed by a third party that does not participate in a California Public Pension system;The activities performed by the retired member are not normally performed by the employees of the employer; andThe activities are performed by the retired member for a limited term of 24 months or less.Reporting to CalSTRS is not a requirement.

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Retired members will lose CalSTRS retirement incentive if they return to work as retired employees with the same employer within 5 years of retirement.

Section 22714 or Section 22714.5

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CalSTRS Golden HandshakeDistrict gave a CalSTRS Golden Handshake to a

member.

That Retiree is prohibited from working for that same employer for 5 years.

If the Retiree works for the same district (even as a substitute), he or she will forfeit the golden handshake.

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Employers Can Assist Retired Members

Discuss the duration of the assignment with the member and check whether member is eligible for exemption/exclusions & determine if the member may exceed the earnings limit.Educate employees regarding Post-retirement Excess Earnings

Notification Process.Obtain, complete & submit exemption forms on member’s

behalf and inform the member current CalSTRS fiscal year retirement earnings limitations.Report correct dates for retirees who return to post-

retirement employment.Determine if the member qualifies for CalSTRS exemptions.

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Employer Requirements/STRS NotificationsEmployer Requirements: Notify the retired CalSTRS members about the employment

restrictions & earnings limitations.Education Code 22461

Post-retirement earnings must be reported with Member Code 2 and Assignment Code 61.STRS Postretirement Excess Earnings Notifications to Members Initial Post-retirement Earnings letter. Post-retirement earnings Mid-Limit letter A letter when a member Exceeds Earnings limit.


Contact CalSTRSSpecial Rules Apply

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Disability Allowance

The disability allowance earnings limit for the fiscal year is calculated individually for each member.

The limit applies to all earnings regardless of whether the earnings are in the public or private sector.

2016 Disability Retirement Earnings Limit

12 month calendar year limit for members on a Disability Retirement.

2016 Limit = $28,950 (Coverage B)

** Contact CalSTRS – Special Rules apply**

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Check with CalSTRS before reinstatement.Affects various areas: Whether reinstatement is less than or

greater than one year. Retirement Incentive. Health insurance premium deductions. Medicare premium. Impact of PEPRA changes (AB 340).

81


Which Rules apply? Government Code/Education Code

If hired in certificated position CalSTRS Rules apply- Call PERS regarding PEPRA changes.

If hired in classified position, - Can work only as Instructional Aide. - CalPERS rules apply.

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Questions

83

Medical Certificate

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If it is your first time to be hired after retirement, you will need a Medical Certificate on file at the employing agency.

Note: For K-12, County Office keeps the form & Community Colleges keep their forms.

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Other Employment Issues

The Employer will probably require you to be fingerprinted.

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What About Social Security and Medicare?

87


Position is not covered by a Section 218 Agreement and;

Position is covered by the same retirement system he/she retires from.

Medicare tax will apply if re-hired after March 31, 1986.

88


The fact a person is receiving benefits from Social Security and/or Medicare does not exempt them from paying contributions from their pay. Social Security/Medicare contributions

from a paycheck are considered a payroll tax.

89


Under federal law, people who are receiving Social Security benefits who have not reached full retirement age are entitled to receive all their benefits as long as their earnings are under the limits.

In 2016, the full retirement age is 65 and 8 months for retirees born in 1941. 65 and 10 months for retirees born in 1942. 66 for retirees born in 1943-1954. 66 & 2 months born in 1955.

Under full retirement age, 2016 limit is $15,720. Monthly Benefit in 2016 = $1,310.

At full retirement age or older – No limit on Earnings.

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Employment for Retirees/Resources

Employment Development Department

Website address http://www.edd.ca.gov

Jobs & training Online Job Center Older Workers One-Stop Career Centers-Resources/Specialists

For Orange County, Anaheim Workforce Center (714) 765-4350 www.anaheimwib.com

Cal Jobs- Post your resume for employers.Experience Unlimited Job Clubs-Networking.CA Department of Aging.

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http://www.edd.ca.gov/

http://www.anaheimwib.com/

Getting Started As a Consultant


So, Is Consulting Right for You?

Able to see the big picture?Willing to work hard and sacrifice for your

business?Can you remain calm in times of Stress? Keep

perspective?Good communicator? Good Listener? Writer?

Speaker?Convincing? Confident? Influential? Credible?


Getting Started as a Consultant

Open a business checking account.Dedicate one of your credit cards for business

expenses only.Talk to an accountant, preferably someone with

small business experience.Insurance agent or broker for disability insurance &

general liability insurance.Make yourself available online. If you Google your

name, what comes up?


Getting Started as a Consultant

Print business cards.Set up a “safe” mailing address – strongly suggest

to get a PO box address unless you feel comfortable sharing your home address with strangers.Set up a business phone line.Set up a dedicated office space.Tell everyone you know that you are starting a

consulting practice.


Getting Started as an Consultant

Join a consulting group.Network, network, network.Consultant Fees – To set fees (Hourly, Daily or

Fees by the Project).


If Possible Operate Under a Business Name and Business License.

Apply to the IRS for an Employer Identification Number (EIN #) instead of using your Social Security Number.

For more information – Refer to “Internal Revenue Service”,

IRS website: www.irs.gov

Employer ID Numbers (EIN) – How to Apply

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http://www.irs.gov/


Have printed stationery and business cards showing the business name.

Invoices should be on business stationery.

It looks better if you are paid by the job rather than hourly, (though not a requirement).

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Provide all your own materials and supplies for the job.

Make and pay your owntravel expenses and billthe firm/district for the cost.

Bill them as a business cost not a reimbursement.

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Make sure you are filing Business Tax Forms and taxes.

As a Independent Contractor you will be required to pay full portion of Social Security Taxes on your profit.

You will need to have general liability and workers compensation insurance for your business.

Have a Vita available listing all your clients.

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Desired Outcome Rehire Options of a Retiree.

Work in a Private Sector.

Work as an Independent Contractor.

Employment after CalPERS Retirement.

Employment after CalSTRS Retirement.

Social Security.

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Questions

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CalPERSwww.CalPERS.ca.gov

1(888)225-7377

CalSTRS www.CalSTRS.com

1(800)228-5453

Social Securitywww.ssa.gov

1(800)772-1213EDD( Help) 1(800)300-5616

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How Can I Find A Retiree To Hire?

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Thank you for your time!

CASBO WEB SITEwww.casbo.org

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APRIL 13-16, 2016 Employment After Retirement Session # HR ... RET23.pdf · APRIL 13-16, 2016...

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Transcript of APRIL 13-16, 2016 Employment After Retirement Session # HR ... RET23.pdf · APRIL 13-16, 2016...