Working After Disability Retirement

If you are thinking of going back to work while receiving PEERS disability benefits, it is important to understand how working after retirement can affect the payment of your disability benefits.

The effect of work on your disability benefits depends primarily on whether you have reached age 60.

Effects of Working After Disability Retirement

Before age 60, your disability benefits stop if:

  • You are employed in any capacity for a PEERS-covered employer.
  • You are employed in any type of non-PEERS-covered employment and the salary for that employment is considered a livelihood as determined by the PSRS/PEERS Board of Trustees (currently earning $18,000 or more per year).
  • You can request a trial return to work. While you work on a trial basis, your disability benefits are put on hold. If you are unable to complete the trial, PEERS will request a medical examination to determine your disability status. If that examination confirms that you are still considered disabled, you can resume receipt of your disability benefits, effective the month following the end of your trial employment. If you successfully complete the trial return to work period, contact us to determine the status of your membership.

At or after age 60:

  • You can work for any employer that is not covered by PEERS with no effect on your PEERS benefits, regardless of hours worked.
  • If you are self-employed as an independent contractor or consultant (based on IRS guidelines) after retirement, this also has no effect on your benefits.
  • You may also work on a part-time basis or as a temporary-substitute for a PEERS-covered employer in any position up to 550 hours each school year and continue to receive your monthly disability benefits. Learn more about the limit

Disability retirees age 60 or older may work full-time for up to a total of two years at PEERS-covered employers that have declared a critical shortage of employees, without losing PEERS benefits.