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CalPERS outlines required documents and common audit pitfalls for school ‘golden handshake’ offers
Summary
CalPERS reviewed Government Code guidance on the school golden‑handshake (service‑credit) amendments, the documents employers must submit, common audit problems and the timing and eligibility rules for offering additional service credit.
CalPERS staff summarized requirements and common compliance issues when school employers offer the ‘‘golden handshake’’ service‑credit option to eligible employees.
A CalPERS presenter (Andy Wen) said Government Code section cited during the presentation allows school employers to offer an additional two years of service credit to eligible employees who retire during an employer‑designated window. He stressed eligible employees must be employed during the window and must retire within the window period (for example, a July 1–Aug. 31 window requires a retirement date within that period). The presenter warned that separation dates after the window or retirements dated outside the window make employees ineligible for the offer.
Why it matters: CalPERS audits have found districts sometimes omit required documentation, apply additional MOU criteria that contradict state law, or fail to obtain required county‑office approval before opening a window. These errors can render the offer noncompliant.
CalPERS listed documents employers must supply before CalPERS will process the state amendment: the cost‑savings analysis or explanation of permanent vacancies created by the offering, board agenda/minutes showing the district adopted the resolution, the county superintendent’s approval/certification, and any labor agreements related to the offer. The presenter noted the state law’s eligibility criteria govern — employers may not add additional MOU requirements that narrow eligibility below the statutory threshold. CalPERS urged districts to contact pensioncontracts@calpers.ca.gov for assistance and to allow time for county approval and documentation before opening a window.
Ending: CalPERS asked employers to consult its web guidance and to provide the required analysis and certified resolutions when offering golden‑handshake benefits to ensure compliance and avoid audit findings.
