Volunteering for PSRS-Covered Employers

You can volunteer at PSRS-covered employers after retirement for an unlimited amount of time with no effect on your benefits if:

  • You are not a paid employee for the same employer for any duties
  • You do not receive salary, including health insurance benefits, from the same employer

But if you perform paid work and also “volunteer” after retirement at the same PSRS-covered employer, and the ”volunteering” and working are essentially performing the same function, the time spent on “volunteer” work is not considered volunteering and counts toward the 550-hour limit. If the volunteering and working duties are substantially different, only the paid hours count toward the 550-hour limit.

Example 1: Volunteer work that counts toward the limit

Mary volunteers 100 hours per semester reading books to kindergartners at Big City Public School District (a PSRS-covered employer). She is also paid to periodically help the kindergarten teacher as an aide. She is essentially performing the same function when volunteering as when working as an aide. Therefore all her hours worked (paid) and volunteered count toward the 550-hour working after retirement limit.

Example 2: Volunteer work that does not count toward the limit

Mary volunteers 100 hours per semester reading books to kindergartners at Big City School District (a PSRS-covered employer).  She also works in the school office. Her volunteer hours do not count toward the 550-hour limit because her volunteer duties are substantially different functions than her paid work.

Retirement incentives or separation agreements sometimes require volunteer work. If a retirement incentive requires you to volunteer in any capacity after retirement in return for salary, including employer-paid health insurance, this is not considered volunteering by PSRS and can cause you to be ineligible to receive PSRS benefits. Please contact us for more information

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