Termination of Pre-Retirement Employment

PSRS/PEERS retirees who return to work for a covered employer without meeting the termination requirement are not eligible to work for your district as a retiree.

Working retirees who have not properly terminated their pre-retirement employment are not eligible to retire and receive benefits. Therefore, they are not eligible to work for covered employers as retirees. In addition, they are required to repay any benefits received while ineligible, including a Partial Lump Sum Option (PLSO) payment, and may be required to pay contributions on salary until employment is properly terminated.

Help working retirees meet the termination requirements and avoid losing benefits - know the rules!

Proper Termination of Employment

To properly terminate employment and be eligible to work as a retiree, PSRS/PEERS members must:

  • End all employment with all PSRS/PEERS-covered employers.
  • Not return to work for a covered employer in any capacity for one month after the PSRS/PEERS retirement date. This may include volunteer work.
  • Not enter a contract for covered employment until after receiving the first retirement benefit payment. This includes any type of early retirement incentive or separation agreement that requires the retiree to return to work or volunteer in return for salary, including health insurance benefits.

Effective July 1, 2016, a PSRS/PEERS retiree cannot enter into any agreement, written or unwritten, for future employment in any capacity by a PSRS/PEERS-covered employer until after they have received their first benefit payment.


If Jane retires July 1, she can begin working August 1 for a PSRS/PEERS-covered employer in a part-time or temporary-substitute position up to the hourly limit (and salary limit if she is a PSRS member), and continue receiving monthly retirement benefits. She cannot sign a contract for employment or work in any capacity (including teaching summer school, working under the Critical Shortage Full-Time Employment Exception, and possibly volunteering until August 1.