If you are considering hiring a retiree, it is important to understand the return to work rules from the plan in which the member retired from and procedures associated with that decision. For specific return to work rules for each plan, select accordingly below:

PSPRS Working After Retirement
CORP Working After Retirement
EORP Working After Retirement

Return to Work Procedures

PSPRS staff determine return to work eligibility for EORP, but statute requires that the local boards for PSPRS and CORP notify our office within 10 days of reemploying a retiree.  The local board must also hold a meeting to review and make a determination of the retiree’s return to work eligibility.  The decision must be addressed in the meeting minutes and applicable supporting records (i.e., prior and current job descriptions, documentation to support hiring process, etc.) must be provided to PSPRS for review and compliance.  

If it is determined by the local board and PSPRS that the retiree meets the return to work requirements, the retirement benefits of the retiree will not be suspended, but if the retiree is in a designated PSPRS, CORP or EORP position, the employer will be required to pay the system an Alternate Contribution Rate (ACR) on behalf of employing a retiree in a position that would normally be filled with a contributing member. If it is determined that the retiree is not eligible to return to work, retirement benefits to the retiree may be suspended and the employer may still be required to pay the ACR.

If a retired member meets the return to work guidelines and works for a PSPRS employer, PSPRS may be able to apply the insurance premium benefit (i.e., subsidy) to the active medical/dental coverage by completing the Employer Request for Subsidy (Form ER SUB) located on Forms & Resources.  Upon review and approval, PSPRS will issue the subsidy at the end of each month directly to the employer to determine how the subsidy may be applied.  

It is important to note that the employer and local board cannot have an implicit or explicit pre-existing agreement with an employee/retiree, whether written or verbal, to return to work in any capacity.

If you have any questions, you may Contact Us.