Making the decision to return to work after retirement should be considered carefully as it may affect your pension benefit.  Below are guidelines regarding returning to work after you have retired:

1)  In order for you to continue to receive your retirement benefits, you cannot return to work in any capacity (except for items 4, 5 and 7b below) from the employer in which you retired for a minimum of six months from the effective date of your retirement. Doing so may result in a suspension of your retirement benefits.

2)  Additionally, at any time following retirement, you may not return to work from the employer in which you retired if the position is the same or substantially similar to the position from which you retired.  Doing so may result in a suspension of your retirement benefits.

3)  If you subsequently become an elected official by election or appointment, it is not considered reemployed by the same employer and your retirement benefits will not be suspended.

4)  You may return to work with the employer from which you retired and continue to receive your retirement benefits as long as you are retired for a minimum of 60 consecutive days from the effective date of your retirement and you were hired for a different position as a result of participating in an open, competitive, new-hire process except if the retired member is hired for the same position or if the retired member has a prearranged reemployment agreement with the employer.

5)  As well as, you can return to work with the employer from which you retired and continue to receive your retirement benefits if you were hired as a fire inspector, or arson investigator.

6)  You may continue to receive your retirement benefits if you are assigned to voluntary duties (i.e., acting as a limited authority peace officer for an employer pursuant to the Arizona peace officer standards and training board rules).

7a)  If you are receiving an accidental or ordinary disability retirement and have not reached normal retirement, in order to return to work with a participating employer in a PSPRS-covered position, the following conditions apply:

• The local board from the employer in which you are receiving the disability benefit 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 PSPRS 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.

7b)  At any time following retirement, if you are awarded an accidental disability, ordinary disability, catastrophic disability, or temporary disability benefit and accept a job reassignment as an accommodation in accordance with the Americans with Disabilities Act of 1990 due to a disability that is directly related, your retirement benefits will not be suspended.

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, within ten (10) days of reemployment, the Local Board is required to notify our office of your reemployment.  Additionally, the Local Board must make the determination of your return to work eligibility and will also need to detail their decision in the Local Board meeting minutes as well as provide PSPRS with the necessary documentation to review your eligibility; otherwise, your retirement benefits may be suspended pending PSPRS review.  If you are not certain who your Local Board contact person is, please Contact Us.  Additional return to work requirements for the Employer and Local Boards are provided here.

Additional Resources

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