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CalPERS details eligibility and documentation requirements for two‑year 'golden handshake' offers to school employees
Summary
CalPERS staff advised districts that golden‑handshake offers (two years additional service credit) must target cost savings or staffing curtailment, be available to all eligible members, require COE adoption of resolutions before the window opens, and come with specified documentation; districts then have up to five years to amortize costs.
CalPERS' pension contract and pre‑funding team reviewed legal and procedural requirements for district offers of a two‑year additional service‑credit incentive commonly called a “golden handshake.” The agency cited Government Code §20904 and said the incentive must be tied to a demonstrated cost‑savings or impending staffing curtailment and offered to all eligible members meeting CalPERS’ minimum service and age requirements.
The presenter said a common implementation error is failure to secure County Office of Education (COE) resolutions or certifications before opening the election window. “It is very important that the school district ... coordinate with the COE to make sure that you have the COE have your items ... on their board agenda items timely and it must be before the window period,” the speaker said.
CalPERS said it will review lists of eligible retirees submitted after a window closes and will raise questions where separation dates, retirement dates or documentation are missing. Districts must provide board agenda items and cost analyses that justify the offer; once processed, districts may pay the amortized cost in full or over three to five years.
What employers should do: confirm COE adoption before opening a golden‑handshake window, certify separation/retirement dates and provide the board agenda, cost analysis and supporting documents when seeking CalPERS implementation.
