New Termination of Employment and Working After Retirement Regulations Effective July 1, 2010
Effective July 1, 2010, changes will apply to PEERS regulations governing termination of covered employment and working after retirement.
The IRS rules state that retirement systems must require a clear separation of service between the termination of employment and post-retirement work. These new regulations help PEERS accomplish this goal by establishing a clear definition of termination of employment. They also provide further direction to members who work for PEERS-covered employers after retirement.
Retirement Eligibility: One-Month Separation from Work
To be eligible for retirement, members must terminate all employment with PEERS-covered employers and file an Application for Service Retirement prior to their effective retirement date. For those retiring on or after July 1, 2010, termination of employment means that members must:
- End all employment with PEERS-covered employers,
- Not be under contract for employment with any PEERS-covered employer, and
- Not return to work for a PEERS-covered employer until at least one month has lapsed since their effective retirement date.
For example, if a member retires on July 1, she can begin working August 1 in a part-time or temporary-substitute position up to the 550-hour limit, and can continue receiving monthly retirement benefits. She cannot volunteer, work under the critical shortage provision, or in any other capacity during the month of July in the year in which she retires.
Pro-Rated Limit on Hours
If a member retires in any month other than July, the 550-hour limit is applied on a pro-rated basis for the rest of that school year. For example, if retirement is effective January 1, PEERS-covered employment may begin on February 1, but is limited to 275 hours through June 30. The pro-rated limit applies only during the year in which the member retires. When the new school year begins July 1, the limit is then increased to the full 550 hours.
The working after retirement limits are applied on a pro-rata basis as shown below to a retiree’s hours of work during the school year in which retirement is effective.
|Effective date of retirement:||Hours allowed after retirement for school year:|
New Record-Keeping Requirements
Regardless of the effective retirement date, all retirees and employers will be required to maintain a written record of the dates and hours worked, and information on the employing school district(s). Record-keeping forms will be sent to members and their employers when they first return to work after retirement. PEERS has the authority and may request access to these record forms for review at any time.