Revised Regulation Defines Rules on Termination of Employment and Receipt of Retirement Benefits  

Effective April 30, 2007, a revised regulation went into effect clarifying the rules for working full-time immediately following retirement from PSRS.

To be eligible for PSRS service retirement benefits, any PSRS retiree whose retirement is effective on or after May 1, 2007, may not work in regular PSRS-covered employment or in a critical shortage position for 60 days following the effective date of retirement, and cannot sign a contract for such employment until after receiving the first PSRS retirement benefit payment.

Any employment during the 60-day period following the effective date of retirement must be either part-time, or as a temporary substitute, and not require PSRS or PEERS coverage. This employment counts toward the 550-hour/50% working after retirement earnings limit. For more information on these limits, view the brochure, Working After Retirement.

Members who violate these rules must repay any benefit payments received while ineligible.

Examples

Joe plans to retire with PSRS effective July 1, 2007. On July 15, 2007, Joe signs a contract to work 24 hours per week during the 2007-2008 school year, beginning September 1, 2007. Is Joe eligible to receive his July PSRS retirement benefit?

No. Since Joe signed a contract to work in a position that would require PSRS coverage prior to receiving his first benefit payment, he does not meet our definition of “terminated,” and is not eligible to receive a benefit.

Sally plans to retire with PSRS effective July 1, 2007.  On August 1, 2007, Sally signs a contract to work 24 hours per week during the 2007-2008 school year, beginning September 1, 2007. Is Sally eligible to receive her July and August PSRS benefit payments?

Yes. She did not sign a contract prior to receiving her first benefit payment, and her covered employment does not commence until after 60 days from her effective retirement date. Sally can receive benefit payments until she exceeds the 550-hour limit and/or the 50% earnings limit on working after retirement.

Mary plans to retire with PSRS effective July 1, 2007. On July 30, 2007, Mary signs a contract to work 10 hours per week during the 2007-2008 school year, beginning September 1, 2007. Is Mary eligible to receive her July PSRS retirement benefit?

Yes. The work Mary has contracted to do during the 2007-2008 school year is not PSRS-covered employment. Therefore, this regulation does not apply.

FAQs | Text of the Regulation