Implications for working after you retire
The following excerpts were taken from publications put out by the Washington State Department of Retirement. You can access the entire publication by going to:
TRS Plan 1
What if I return to work after I retire?
Keep in mind that you must be separated from employment for at least 30 days after your effective retirement date before you can return to work for a K-12 employer, state agency or institution of higher education and continue to receive an unreduced retirement benefit. You must not have a written or verbal agreement for reemployment with the same employer before your retirement.
Once you have been retired for at least 30 days, additional rules apply based on the date you retired and where you return to work:
- If you return to work for a public educational institution in Washington State (K-12, community colleges, universities) or in a higher education retirement plan (HERP)-eligible position (including as a substitute):
- You can work for 867 hours in a fiscal year (July 1-June 30) without impacting your retirement benefit.
- Note: You can continue to work once you have exceeded 867 hours. However, if you do so, your retirement benefit will stop. It will resume following your last day of employment or at the beginning of the next fiscal year (July 1-June 30), whichever comes first.
What do I need to do if I return to work after retirement?
When you return to work, you must let your new employer know that you are a retiree from TRS. If your employer does not know you are retired, you may be reported as an active member-which may stop your benefit. It is your employer’s responsibility to report any return to work hours to DRS.
How will I know when I reach the hourly limits?
DRS will notify you in writing when you near your hourly limit for a fiscal year. When you exceed your hourly limit, DRS will notify your employer. You may also track the number of hours you have worked within online account access.
Note: Your retirement benefit will stop once you exceed your hourly limit. It will resume following your last day of employment or at the beginning of the next fiscal year, whichever comes first.
PERS Plan 1
When is the earliest I can return to work?
To receive an unreduced retirement benefit, you must wait at least 30 calendar days after your effective retirement date before returning to work.
What should I do when I return to work?
When you return to work for a DRS-covered employer, it is important to let your employer know you are a retiree. If you are hired into a position that is eligible for membership in a DRS or higher education retirement plan (HERP) your employer is required to report your hours of employment each month to DRS. If your employer does not know you are retired, you may be reported as an active member-which may stop your benefit. Contact your employer to determine the eligibility of your position.
How many hours can I work each year and still receive a benefit?
- If you return to work in a DRS-eligible position, you can work up to 867 hours in a calendar year and continue to receive your monthly benefit. If you work more than the maximum number of hours allowed, your retirement benefit will be suspended for the remainder of the calendar year or until you terminate employment.
Which hours count toward the limit?
Only hours for which you receive compensation in a DRS-or HERP-eligible position count toward the limit. This includes paid holidays or compensatory time, sick leave or annual leave taken in lieu of normal work hours. Sick leave or annual leave that is cashed out at the end of an employment period does not count toward the limit. Cashed out compensatory time does count toward the limit.
There is no cumulative limit placed on your employment. You can continue to work up to 867 hours each calendar year for as long as you like.
TRS, SERS, and PERS Plan 2 and 3
What should I do if I return to work for a DRS-covered employer?
If you return to work for a DRS-covered employer, it is important to let your employer know you are a retiree. Your employer is required to report your employment to DRS. If your employer does not know you are retired, you may be reported as an active member-which may stop your benefit.
What happens if I return to work more than 30 days after I retire?
The rules that determine the number of hours you can work and continue receiving your benefits at the same time depend on how you choose to retire.
If you choose a normal retirement or early retirement using factors other than the 2008 Early Retirement Factors (ERF)
You will continue to receive retirement benefits if you wait at least 30 consecutive days after you retire and you work:
- For a DRS-covered employer, but your position is ineligible for a membership in a DRS or higher education retirement plan (HERP), or
- As a contractor with a Washington state educational institution (see Contract work with a Washington state educational institution), or
- 867 hours or less in a calendar year in one or more eligible DRS-or HERP-covered positions. Your retirement benefits stop once you work more than 867 hours in a calendar year. Your benefits will resume following your last day of employment, or at the beginning of the next calendar year, whichever comes first.
If you choose to retire early using the 2008 ERF
If you are a TRS member who retired using the 2008 ERF and have not reached 65:
- You are allowed to work as a substitute teacher for up to 867 hours per calendar year with the following conditions:
- You cannot begin substituting until at least one month after your retirement date.
- Any district that hires a 2008 ERF retiree under these provisions must pay all substitutes in their district at least 85% of the daily substitute rate allocated by the state. In 2016-17, the state’s allocated daily substitute rate is $151.86 and 85% of that is $129.08.
- These provisions are temporary and are scheduled to expire July 31, 2020.
- After July 31, 2020 or if you return in any other capacity for a DRS-covered employee, your monthly benefit will be suspended for any month in which you work for that employer. Your benefit will restart the first month after you stop working.
If you are a SERS or PERS member who retired using the 2008 ERF, and have not reached age 65, you cannot work in any capacity for a DRS covered employer and continue to receive your benefit. If you do return to work, you will not receive your monthly benefit for any month in which you work. Your benefit will restart the first month after you stop working.
Once you reach age 65, all retirees who used the 2008 ERF can work under the rules previously described for all other Plan 2 and 3 retirees.
Can I work over the annual limit?
You can work as many hours as you wish in a calendar year. However, if you work over the maximum number of hours allowed, your retirement benefit will be stopped for the remainder of the calendar year or until you terminate employment. In the month you exceed the limit, your benefit will be prorated.