Termination of Pre-Retirement Employment
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 PSRS/PEERS covered employer in any capacity for a period of one month after their PSRS/PEERS retirement date, which includes volunteer work if he or she later becomes a paid employee with the same employer in the same or similar position.
- Not enter into any agreement, written or unwritten, for future employment at a covered employer in any capacity until after receiving the first retirement benefit payment.
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.
Jane is a PSRS retiree. If Jane retires July 1, she can begin working in a certificated position such as a part-time teacher on August 1 for a PSRS/PEERS-covered employer up to the applicable hourly and salary limits, and continue receiving monthly retirement benefits. She cannot sign a contract or enter into any agreement for employment or work in any capacity (including teaching summer school, working in Critical Shortage Employment, and possibly volunteering until August 1.
Gus is a PEERS retiree. If Gus retires January 1, he can begin working in a non-certificated position such as a bus driver, on February 1 for a PSRS/PEERS-covered employer up to the applicable salary limit, and continue receiving monthly retirement benefits. He cannot sign a contract or enter into any agreement for employment or work in any capacity (including working in Critical Shortage Employment, until August 1.