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) You may become re-employed in a CORP designated position by the employer from which you retired and continue to receive a pension if the employment occurs six months or more after your retirement. If you have met the six 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. No service is credited during reemployment. Additionally, the CORP employer will be required to pay the plan an Alternate Contribution Rate (ACR).
2) If you become re-employed in a CORP designated position by the employer from which you retired before six 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. No service is credited during reemployment. Additionally, the CORP employer will be required to pay the plan an 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:
- 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 re-employment 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.