Working in a Certificated Position as an Independent Contractor

As a retiree, you can work as an independent contractor. If you work as an independent contractor (as defined by the IRS) for a PSRS-covered employer (school district) in the position of a substitute teacher, or any other position that requires a DESE-issued certificate, your work is subject to limits in order to continue receiving benefits.

  • You can work for a maximum of 550 hours each school year (July 1 - June 30).
  • Within the 550 hours, you can earn up to 50% of the annual compensation payable under the employer’s salary schedule for the position or positions, given your level of work experience and education.

If you retire in a month other than July, the 550-hour and 50% salary limits are pro-rated (lower) during the first school year after retirement. You will receive a letter containing your personal limits when you return to work as a retiree.

As long as you do not exceed either the hourly or salary limit, and do not become a full-time, regular employee, you will continue to receive your PSRS benefits. If you exceed any limit that applies to you, your benefits will stop. In order for your benefits to resume, you must end all work that counts toward the limit you exceeded. You will be required to reimburse PSRS for all retirement benefits paid while ineligible, including funds in a PLSO distribution, and pay contributions that would have been required.

 

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