Here is how Gov. Newsom’s return-to-office order impacted state worker retirements

How did Gov. Gavin Newsom’s 2024 return-to-office order impact state worker retirement?

Apparently not much.

The latest retirement numbers show that in 2024 — when Newsom directed telework-eligible employees to return to state offices two days a week — only 9,806 state employees retired, 2% fewer than the previous year. Retirements in 2023 previously set a five-year low, according to the California Public Employees Retirement System.

Though the return-to-office order was only in effect for the second half of 2024, the number of state workers who retired in those months did not deviate significantly from those in the previous year.

Last year, CalPERS reported 29,629 total service retirements, a 1% increase compared to 2023. The number of CalPERS members who retire annually has decreased in recent years since the COVID-19 pandemic pushed state workers, public agency workers and classified school employees into retirement at unusually high rates.

Margaret Brown, the president of the Retired Public Employees’ Association of California, pointed to the economy as the primary reason fewer state employees retired last year.

“People can’t afford to retire,” she said. “With all the increase in costs and the uncertainty, you don’t give up your job.”

Brown expects 2025 will see significantly higher retirement numbers due to recent changes to Social Security.

Just before leaving office, President Joe Biden signed legislation that expanded Social Security benefits for roughly 400,000 Californians. Public employees such as teachers, firefighters, state, county, city and district workers who paid Social Security while working qualifying jobs previously had their benefits reduced due to their government work. Spouses of those former public employees also stand to benefit from the legislation.

According to the nonpartisan Congressional Budget Office, eligible retirees would earn an average of $360 to $1,190 more per month.

“It’s been a 40 year fight to have that penalty removed,” Brown said.

Brown predicted the state also will see higher retirement in 2025 due to Newsom’s four-day, in-office telework policy. She said having to go into the office, losing time away from home and the cost of gas and parking would factor into some state workers’ decision to retire earlier than anticipated.

Though with the economy in a precarious position, and if 2024 is any indicator, state employees might just endure the unpopular return-to-office directive this year.