Working After Retirement

Working After Retirement

The laws that govern retirees returning to work for a PERA affiliate have changed over the years. As of July 1, 2013, the following restrictions apply:

Retirees Hired on or After July 1, 2010

Effective July 1, 2010, the pension of a retiree who returns to work for a PERA affiliate is suspended. No longer can a retired member collect both a salary and a their retirement benefit. If a retired member decides to return to work for a PERA they have the following options:

  • Become a contributing member to PERA again and resume accruing service credit. Once the member is ready to resume retirement, their monthly benefit amount will be re-calculated. If this option is chosen, PERA must be informed in writing to suspend their benefit and a new Application for PERA Membership form must be submitted to PERA.
  • If the retired member has completed a 12-month break in service from their last retirement date, the member can begin employment with a PERA affiliate and choose not to make member contributions. In this case the retired member will not accrue service credit. If this option is chosen the Application for a Re-employed PERA Retiree form must be submitted to PERA.

Retirees Hired on or Before June 30, 2010

Retirees who were re-employed before July 1, 2010 were grandfathered in under the laws in place when they were re-employed. Re-employed retirees will continue to receive both a pension and a salary. These re-employed retirees will remain grandfathered in for as long as they continue working for the employer who hired them without a break in service. If you terminate employment you will lose "grandfathered" status. If you begin working again you must suspend your pension.

Additionally, re-employed retirees and their employer are required to make contributions during re-employment and these contributions are not refundable to the member.

Exceptions to Return to Work Provisions for Retired Members

The only retired members who are exempt, or excluded, from the return to work provisions are:

  • A retired member employed by Legislature for legislative session work;
  • A retired member employed temporarily as a precinct poll worker for a municipal election or an election covered by the election code; or
  • A retired member who is elected to serve a term of office and files a timely exclusion form.

Working for a Private Company or Non-PERA Affiliate

There are no limits on the amount of time you may work for an employer not affiliated with PERA. No contributions are due and your monthly benefit will not be affected.