Passage of Senate Bill 892 Creates New Working After Retirement Rules for PSRS Retirees Working in Non-Certificated Positions
Senate Bill 892 (CCS/SCS/SB 892) was passed by the Missouri legislature during the 2018 regular legislative session, was signed by Governor Parson and became law July 5, 2018. The bill changes the statutory limits on work after retirement for those PSRS retirees who work at a PSRS-covered employer in a non-certificated position, such as a coach, bus driver, cook or office staff.
Effective August 28, 2018, for PSRS retirees who work after retirement for a PSRS-covered employer in a non-certificated position:
- The salary limit has changed. You may earn up to 60% of the minimum teacher's salary set by Missouri law ($15,000) per school year. (The current minimum teacher salary is $25,000.)
- This salary limit only applies to any/all employment at covered employers in a non-certificated position or positions.
- Employer-paid insurance premiums paid as a result of such employment are considered part of your salary and count toward the limit.
- There is no limit on the number of hours you can work in a non-certificated position.
Please note that this bill does not impact PEERS retirees, or PSRS retirees whose work after retirement for covered employers is performed in positions that require a DESE-issued certificate. Retirees should track their hours and salary to ensure they don't exceed those limits.
Other important considerations if you work in such a position:
- If your work exceeds the salary limit, your retirement benefits will stop effective the month the limit is exceeded and until the work ends or a new school year begins on July 1.
- If your work over the limit is eligible for membership, you will be required to start a new PSRS membership. You will then be required to pay contributions to PSRS.
- If you work in multiple positions after retirement (at covered employers), it is possible that you could be subject to the 550-hour/50% limits for work in certificated positions, as well as the separate, $15,000 limit for non-certificated positions. In this case, your work against each limit should be tracked separately.
For more information, or if you have questions, please feel free to contact any of our trained representatives at (800) 392-6848 or email@example.com.