Limits on Working After Retirement
PSRS and PEERS retirees can work for covered employers while receiving service retirement benefits. However, if they do so, they are subject to limits on that work in order to continue to receive benefits.
The limits vary depending on the System from which the employee retired, and in some cases for PSRS retirees, whether the position in which the retiree works requires a certificate issued by the Missouri Department of Elementary and Secondary Education (DESE).
- PEERS retirees who work part-time or as a temporary-substitute for a covered employer are subject to limits.
- PSRS retirees who work for a covered employer are subject to limits.
- PSRS retirees who work at a covered employer, but a third-party provider such as an employment or staffing agency, or as an independent contractor, in a substitute teacher role or in any other position normally requiring a DESE-issued certificate are also subject to limits.
Members who retire in months other than July have their limits pro-rated for the first year after retirement to reflect a shorter work period. For subsequent years, their limits return to the full amount(s).
If you are a covered employer that employs PSRS or PEERS retirees:
- Both you and the working retiree must be aware of the applicable limits and track the work each school year.
- You as the employer must report this information to PSRS/PEERS with your monthly payroll.
- You do not have to make Retirement System contributions for these employees unless he or she is a PSRS retiree working in a non-certificated position, or is employed in Critical Shortage employment.
|PEERS Retirees||PSRS Retirees|
PEERS retirees who are employed on a part-time or temporary-substitute basis by a covered employer are limited to working a maximum of 550 hours per school year.
If the retiree exceeds the limit, the retiree is no longer eligible to receive a PSRS/PEERS retirement benefit until employment has stopped for the school year, or a new school year starts on July 1.
For PSRS retirees, the work limits that apply depend on whether the position in which the individual is working as a retiree requires an educator certificate from the Missouri Department of Elementary and Secondary Education (DESE).
PSRS Retirees Working in Certificated Positions at K-12 Schools
If a PSRS retiree is hired either part-time or as a temporary-substitute and works in a position that requires a DESE-issued certificate, there are two limits on the individual’s employment:
PSRS Retirees Working in Non-Certificated Positions at K-12 Schools
If a PSRS retiree is hired and works in a position that does not require a DESE-issued certificate, the individual is limited to earning a maximum of $15,000 per school year. This amount is 60% of the minimum teacher’s salary of $25,000 per year set by Missouri law. Employer-paid insurance benefits, payouts for unused leave, and any other payments or incentives are considered compensation and count toward the compensation limit.There is no limit on hours worked.
PSRS Retirees Working at Public Two-Year (Community) Colleges
If a PSRS retiree is hired either part-time or as a temporary-substitute and works in any position (regardless of whether it requires a DESE-issued certificate), there are two limits on the individual's employment: