Golden Handshake Information

A "Golden Handshake" is an early retirement incentive that can be offered by the State. The State is not offering a Golden Handshake incentive at this time.

In order to offer a Golden Handshake, there must be an impending layoff and the State can demonstrate that enough savings can be realized to pay for the Golden Handshake benefits.

Under current law, there are several different provisions the State can use to offer a Golden Handshake, depending on the branch of government.

• State Agencies, including California State University - the Governor must sign an Executive Order to provide this benefit to State employees.

• Legislature - each house of the Legislature must make a resolution to provide this benefit to legislative support staff.

• Judicial - the Chief Justice must announce an offering of the benefit to judicial support staff.

The State must cover the cost for a Golden Handshake early retirement incentive. Current law allows for a Golden Handshake to provide an additional two years of service credit. A window period (the time period in which you must retire) of not less than 60 days, but not more than 120 days is usually established.

If you retire under a Golden Handshake and then receive unemployment benefits or reinstate from retirement, you will lose this benefit.

Dated: 04-10-2008