Making the decision to return to work with a participating CORP employer after retirement should be considered carefully as it may have an effect on your pension benefit. Below are guidelines regarding returning to work after you have retired:
1) You may become re-employed in a CORP designated position and continue to receive a pension if the employment occurs twelve months or more after your retirement. If you have met the twelve months or more break, during your reemployment you will continue to receive your pension benefits, but you cannot contribute to the Plan and cannot accrue any credited service. Additionally, the CORP employer who reemploys you will be required to pay the Plan an Alternate Contribution Rate (ACR), which you cannot receive these contributions or service credit based on the ACR.
2) If you become employed by a participating CORP employer in a designated position before twelve months of your retirement, your pension benefits will be suspended and will remain suspended during your re-employment. When you terminate your re-employment and resume your retirement benefits, you will receive the same pension benefit that you were receiving when your benefits were suspended. Additionally, the CORP employer who reemploys you will be required to pay the Plan an ACR, which you cannot receive these contributions or service credit based on the ACR.
3) If you subsequently become an elected official by election or appointment, it is not considered reemployed by the same employer and retirement benefits will not be suspended.
4) If you are receiving a disability retirement (and have not reached normal retirement), in order to return to work with a participating employer in a CORP designated position the following conditions apply:
- Your local board will need to review and determine your return to work eligibility. If approved to return to work, your pension will be terminated.
- During your reemployment in a CORP designated position, you will be required to contribute to the Plan.
- Your service will be reestablished and will be used in determining your future retirement benefit, when you become eligible and make application for normal retirement.
- The time during which you were receiving a disability pension will be considered “service” and not “credited service” and your average monthly salary will be based on the salary from the new employment.
- At time of retirement, you cannot have an implicit or explicit pre-existing agreement with your employer from which you retired, whether written or verbal, to return to work, in any capacity. Your employer must be able to demonstrate that a bona fide termination of employment occurred.
As with all benefit determinations, your Local Board must review and determine your eligibility for pension should you return to work after retirement and will also need to detail their decision in the Local Board meeting minutes as well as provide our office with the necessary documentation to review your eligibility; otherwise, your retirement benefits may be suspended pending review. If you are not certain who the Local Board contact person is, please Contact Us. Additional return to work requirements for the employer and local boards are provided here.