Proper Termination of Employment Before Retirement
Even if you meet all the eligibility requirements for service retirement, you are not eligible to receive benefits unless you have properly terminated your pre-retirement employment with PSRS-covered employers.
Be careful when planning post-retirement work for covered employers. Returning to covered employment, agreeing to post-retirement employment, or a retirement incentive that includes post-retirement work in exchange for salary (including health insurance benefits) may mean you have not properly terminated your employment.
To properly terminate your employment:
- End all employment with all PSRS-covered employers.
- Don't return to work for a covered employer in any capacity for at least one month after your PSRS retirement date.
- If you plan to retire July 1, you cannot work in the month of July, including any summer school hours
- Don't enter into any agreement, written or unwritten, for future employment at a PSRS-covered employer in any capacity until after receiving your first retirement benefit payment.
If you volunteer after retirement for a PSRS-covered employer and later become a paid employee for the same employer in the same or a similar position, it is considered “work” not volunteering and does not meet the terms of a proper termination.
Failure to properly terminate employment can be costly! You are required to repay benefits you receive while not eligible and pay PSRS contributions until you properly terminate your employment. The minimum amount is one full monthly benefit.
If you have questions about terminating your employment, contact us.
You might also be interested in ...
- Working after retirement for employers not covered by PSRS
- Working after retirement part-time or as a temporary-substitute for PSRS-covered employers
- Limits on working after retirement
- Working after retirement full-time for PSRS-covered employers
- The Critical Shortage Full-Time Employment Exception
- Volunteering after retirement
- Working as an independent contractor or consultant
- The PSRS Working After Retirement brochure