What Happens if You Exceed a Working After Retirement Limit?
If you exceed a working after retirement limit:
- You must notify PSRS immediately.
- Your benefits stop effective the month in which the limit is exceeded. The minimum amount you will forfeit is one full monthly benefit.
- Your benefits resume the month after your employment again ends or when a new school year begins on July 1.
- If you meet membership requirements, you must establish a subsequent PSRS membership and pay contributions.
- You are required to reimburse PSRS for all benefits received while ineligible.
Mark is retired and working part-time in a certificated position for a PSRS-covered employer. Mark exceeds either the hourly or salary limit in April. He ends his post-retirement employment with the PSRS-covered employer in May. His April and May benefits are not payable. However, if he does not return to PSRS-covered employment, his benefits resume in June.
If you exceed a limit, any work in the position or positions subject to the limit that was exceeded must stop in order for your benefits to resume. If you also work in a separate position subject to a separate limit, that work may continue.
Establishing a Subsequent Membership
If your post-retirement work meets membership eligibility requirements, you must establish a new membership and pay contributions on your salary. You will earn service under your new membership.
If you earn a minimum of one year of service under that new membership, you are eligible for a second retirement benefit. You also have the option to request a refund of your contributions and interest earned under the new membership. When you do this, you forfeit any rights to a second monthly retirement benefit.
- Combine your second benefit with your initial benefit
- Choose a Partial Lump Sum Option (PLSO) payment on your second membership