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 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.
Limits on Working After Retirement
PEERS RetireesPSRS 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

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 with all PSRS/PEERS-covered employers:

  • The retiree can work for a maximum of 550 hours each school year (July 1 - June 30).
  • Within the 550 hours, the retiree can earn up to 50% of the annual compensation payable under the employer’s salary schedule for the position or positions, given his or her level of work experience and education.

PSRS Retirees Working in Non-Certificated Positions

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. There is no limit on hours worked.

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