Limits on Working After Retirement

Retirees who return to work part-time or as a temporary-substitute for your district must stay within legal limits on their work in order to continue to receive their PSRS/PEERS benefits while working.

  • Both PSRS and PEERS retirees are limited to working at most 550 hours each school year
  • PSRS retirees are also limited to earning a maximum of 50% of the salary they would earn if they were employed in the same position full time, for the full school year (July 1 - June 30) based on the employer's salary schedule and the retiree's education and work experience.
  • Effective July 1, 2015, PSRS and PEERS retirees who teach at covered public two-year colleges must convert the credit hours they teach to clock hours in order to track their progress against the 550-hour limit (one credit hour equals 30 clock hours).
Limits on Working After Retirement
Part-Time or Temporary-Substitute Work Full-Time Work

550-Hour Limit

  • All employment with PSRS/PEERS-covered employers counts toward this limit.
  • Hours volunteered while also serving in a paid position for the same employer may count toward this limit.
  • Hours worked or volunteered as part of a retirement incentive count toward this limit.

PSRS 50% Salary Limit

  • Determined by the employer based on the annual full-time salary payable for the position.
  • If a retiree fills more than one position, the salary limit is based on the annual salary of the highest paid position in which he or she works for at least 20% of the total hours worked during the year.
  • All salary (including insurance benefits) counts toward the salary limit.
  • The salary and insurance benefits received as part of a retirement incentive count toward the salary limit.
  • Working full-time after retirement for a PSRS/PEERS-covered employer results in the forfeiture of retirement benefits.
  • Benefits resume the month after the retiree's employment ends or when a new school year begins on July 1.
  • Unless working under the Critical Shortage Full-Time Employment Exception, the retiree must start a new membership, pays contributions and earns service.
  • The employer must notify PSRS/PEERS and withhold/pay contributions for the employee.

Your responsibilities as an employer:

If the date of retirement is in a month other than July, the 550-hour limit, and for PSRS retirees the 50% of salary limit, are applied on a pro-rated basis for the rest of that first school year.