Critical Shortage Employment

Critical Shortage Employment is a legal provision which allows covered employers that meet certain requirements to employ PSRS/PEERS retirees without affecting the payment of their retirement benefits.

How Critical Shortage Employment Works

If your district declares a critical shortage of either certificated or non-certificated employees, you can hire up to 10% of the certificated (or non-certificated) staff, not to exceed five individual PSRS or PEERS retirees to work, for up to 24 months under this provision.

  • The work can be full-time or part-time
  • The 24 months of employment do not have to be consecutive - there can be breaks in the employment. However, the total time worked by each retiree cannot exceed 24 months at all employers.
  • The retired members employed under this provision continue to receive benefits, but do not contribute to PSRS/PEERS or earn service.
  • By law, districts cannot use the Critical Shortage provision to fill the position of superintendent.
  • PSRS/PEERS requires employers to certify in writing annually that they have met the requirements to hire a specific individual under Critical Shortage employment.
  • During the 24 months of Critical Shortage employment, employer contributions must be made on all salary earned, including employer-paid medical insurance premiums.
  • If a retiree works in Critical Shortage employment and also works in an additional position(s) that is not covered by the Criticial Shortage as certified, the work in the additional positions is subject to the separate working after retirement limit(s) that apply, based on whether that position requires a DESE-issued certificate.

In order to employ retirees under this provision, the employer must:

  • Not have offered early retirement incentives for either of the previous two school years
  • Post the vacancy or vacancies for at least one month
  • Solicit applications through the local newspaper, other media, or teacher education programs
  • Make a good faith effort to fill positions with non-retired employees
  • Determine that there is an insufficient number of eligible applicants for the advertised position(s)
  • Declare a shortage of certificated or non-certificated employees

You Might Also Be Interested In: