CalPERS presents guidelines for golden handshake offering to school districts

The CalPERS School Employer Advisory Committee (SEAC) meeting on February 12, 2025, highlighted critical guidelines for school districts considering the "golden handshake" retirement incentive for employees. This program allows eligible employees to retire early with enhanced benefits, but it comes with specific requirements that districts must follow.

During the meeting, officials emphasized the importance of proper documentation before offering the golden handshake. Key documents include a cost-saving analysis, any relevant labor agreements, and board meeting minutes that confirm the resolution to adopt the program. These documents ensure compliance with legal standards and help streamline the process for school districts.

Andy, a representative from CalPERS, urged districts to reach out for assistance and clarification on the necessary paperwork. He stated, "We are here to assist you and make sure that when you offer this benefit to your employees, we have all the proper documents."

A significant point of discussion arose regarding the restrictions on rehiring employees who take the golden handshake. Committee member Tina Nguyen raised a question about the two-year waiting period before retirees can be rehired by the same district. Andy confirmed that if an employee is rehired within this period, they would forfeit the additional two years of service credit associated with the golden handshake.

The meeting concluded with a reminder for districts to utilize CalPERS resources for any questions or further information regarding the golden handshake process. As school districts prepare to implement this incentive, understanding these guidelines will be crucial for ensuring a smooth transition for retiring employees.