Arizona’s return-to-work laws let EORP retirees go back to work, but with limits to protect pension funds and follow federal rules.
Retirees can work in the private sector or in public jobs not covered by PSPRS plans with no pension impact. But to return to a covered job with the same employer, they must wait a full term and have a true break in service – or risk losing pension payments during reemployment.
Retirees do not contribute to EORP or earn additional credited service when returning to work. Employers may have to pay an Alternate Contribution Rate (ACR) when hiring retirees.
Members elected/appointed prior to January 1, 2014
- Retirees can return to work in an EORP-covered position and collect their pension
- Retirees will have pension payments suspended while holding office
- Any pension payments received in this period (if retired on or after July 1, 2009) are considered overpayments and must be repaid up to the amount received during that term
- Officials’ pension resumes once they leave office
- Retired judges called to active duty by the Arizona Supreme Court are entitled to receive the same compensation and expenses as other judges, less the retirement benefit amount.
Members elected/appointed on or after January 1, 2014
- Return to work laws do not apply to participants of the EODCRS, which is a defined contribution retirement plan
Return to work process for employers and PSPRS (as local board for EORP)
Employers of EORP retirees must determine whether the retiree has been retired for at least one elected or judicial term and update their records in the employer portal.
Employers are encouraged to contact PSPRS when hiring EORP retirees. PSPRS determines EORP retirees eligibility for retirement benefits should they return to work.
Employers must submit the Employer Request for Subsidy (Form ER SUB) for retirees who are covered by an employer’s active medical or details plan. If approved, PSPRS will send the subsidy to the employer each month.
More information is available on the Hiring Retirees page.