You might decide to return to work after retiring. Before you do, it’s important to understand the rules for working after retirement so you don’t have a reduction in your PERA benefit.
Working after retirement rules differ depending on the employer for which you work.
Working for a Private Company or Non-PERA Employer
There are no limits on the amount of time you may work for an employer not affiliated with PERA or an employer that does not perform services for a PERA employer. No contributions are due from you or your employer and your benefit will not be affected.*
Working for a PERA Employer
If you plan to return to work for a PERA employer, it is important that you understand and comply with the working after retirement rules to avoid any possible reductions in your PERA benefit. Listed below are some of the basic working after retirement rules. Please refer to the Working After Retirement booklet for complete details.
- You may volunteer for a PERA employer as many hours as you desire.
- If you return to work for a PERA employer during the effective month of retirement, you are subject to additional rules and a reduction in your benefit. You may not work on the first business day of the month your retirement is effective.
- If you return to work for a PERA employer and are not an independent contractor, you are limited to 110 days or 720 hours of work per calendar year. If you exceed those limits, PERA will reduce your benefit. If you are an independent contractor, you are not subject to those limits.
- If you work for a PERA employer, including if you are working as an independent contractor, employer contributions and working retiree contributions must be paid on salary earned.
- If you provide services to a PERA employer through a business owned or operated by you or an affiliated party,** employer contributions and working retiree contributions must be paid on salary earned.
- As a result of the merger with DPSRS, there are additional rules for both PERA and DPS benefit structure retirees.
You may decide to suspend your retirement benefits and return to work for a PERA employer as a member rather than working within the limits for working after retirement.
If you suspend your retirement benefits:
- You must notify PERA in writing prior to the date of your re-employment.
- It is your responsibility to notify your employer that you have suspended your retirement, so your employer can withhold member contributions from your pay.
- If you are a retiree under both the PERA and DPS benefit structures, and want to suspend retirement, you must suspend both retirements.
- Some PERA employers have positions that are not subject to PERA membership. If you are working in a position of this kind, you will be unable to suspend your retirement.
The rules on suspending your retirement are different under the PERA and DPS benefit structures. They are also different depending on whether you suspended your retirement on or before December 31, 2010, or on or after January 1, 2011. Please refer to the Working After Retirement booklet for complete details.
* Disability retirees have different working after retirement rules.
** An affiliated party is defined further in the Working After Retirement booklet, and includes: your named beneficiary or cobeneficiary on your PERA account; a person who is your relative by blood or adoption; a person who is your relative by marriage or civil union; or a person or entity with whom you have an agreement to share or profit from the performance of services for a PERA employer in addition to your regular salary or compensation.