Copyright© 2006 by School Services of California, Inc.

                                      Volume 19                   For Publication Date: December 15, 2006             No. 26

Ask SSC . . . 

Is the STRS Golden Handshake Still Available?

Q.                What is the status of the State Teachers’ Retirement System’s (STRS’) Golden Handshake? Is it still available for school districts to offer? If so, then what are the restrictions on employment after an employee takes the Golden Handshake?

A.                 The STRS Golden Handshake, as implemented by AB 1207 (Chapter 313/2003), originally contained two options for benefit levels: 

·                    Two additional years of service credit 

·                    Two years of age plus two additional years of service credit 

The second option, referred to as the “2+2” option, expired on January 1, 2005. Unless your board of education took action to designate future window periods for a “2+2” program before that date, the “2+2” program is no longer an option for your district. 

The first option, that of the two additional years of service credit only, is still in effect and the code as it currently stands does not include a sunset date for this program. There are certain requirements that must be met, including that the district must demonstrate that the Golden Handshake offering is at no net cost to the district. Check with your county office of education for the forms, calculations, and requirements. 

As to the aspect of returning to work after taking the Golden Handshake, the original provisions of AB 1207 were modified later by AB 1852 (Chapter 935/2004), effective January 1, 2005. A member who has retired and received the Golden Handshake benefit must forego the benefit of the additional two years of service credit if the member does one of the following: 

·                    Returns to active STRS status

·                    Receives unemployment insurance within one (1) year

·                    Returns to work in the same district that provided the benefit within five (5) years

Keep in mind that there are other retirement incentive programs available, either through a private provider or sponsored directly by the district. These other options can provide the same or better benefit to retirees, at a lesser cost, than the STRS program. Please be sure to investigate your options and offer a program that makes the most sense for your district’s situation and for your potential retirees.

 —Sheila G. Vickers