Clarification of Termination Definition and Working After Retirement Limits

At its December 14, 2009 meeting, the PSRS/PEERS Board of Trustees approved changes to the regulations that define termination, clarify the limits on working after retirement, and require employers to maintain a log of hours and earnings for PSRS and PEERS retirees.

First, the Board clarified the separation of employment necessary to “terminate” and be eligible to receive a benefit from PSRS or PEERS. The Board approved changing the requirement to a one (1) month total separation (no work in any capacity; as a temporary substitute, as a part-time employee, or as a volunteer) from a PSRS or PEERS covered employer. While this should not impact the start of a new school term for a July retiree, anyone retiring as of July 1 will not be allowed to work for a covered employer until August 1, which may impact working during summer school, depending on the district’s school calendar. This change will affect all retirees, from either PSRS or PEERS, who retire effective on or after July 1, 2010.

Secondly, the Board clarified that the post retirement employment limits (550 hours and 50% earnings for PSRS retirees, and 550 hours for PEERS retirees) must be pro-rated for individuals who retire during the school year (retirement effective dates other than July 1). The pro-rated limits are contained in a chart in the amended regulation. This change will affect all retirees, from either PSRS or PEERS, who retire effective on or after July 1, 2010.

Finally, the Board modified the regulation requiring both school districts and retirees to maintain a log of their post-retirement employment. Hours worked and compensation earned each month will be required for PSRS retirees, and hours worked each month will be required for PEERS retirees. These logs must be maintained, and provided to PSRS/PEERS when requested. The forms used to keep these required logs will be included in the correspondence sent each year when a retiree is reported as working for a covered employer. This requirement applies to all PSRS and PEERS retirees, regardless of the effective date of their retirement.

Links to copies of the amended regulations are below. Please feel free to contact your ESR with questions about how these changes will affect your employment of PSRS and PEERS retirees.

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		Clarification of Termination Definition and Working After Retirement Limits At its December 14, 2009 meeting, the PSRS/PEERS Board of Trustees approved changes to the regulations that define termination, clarify the limits on working after retirement, and require employers to maintain a log of hours and earnings for PSRS and PEERS retirees. First, the Board clarified the separation of employment necessary to “terminate” and be eligible to receive a benefit from PSRS or PEERS. The Board approved changing the requirement to a one (1) month total separation (no work in any capacity; as a temporary substitute, as a part-time employee, or as a volunteer) from a PSRS or PEERS covered employer. While this should not impact the start of a new school term for a July retiree, anyone retiring as of July 1 will not be allowed to work for a covered employer until August 1, which may impact working during summer school, depending on the district’s school calendar. This change will affect all retirees, from either PSRS or PEERS, who retire effective on or after July 1, 2010. Secondly, the Board clarified that the post retirement employment limits (550 hours and 50% earnings for PSRS retirees, and 550 hours for PEERS retirees) must be pro-rated for individuals who retire during the school year (retirement effective dates other than July 1). The pro-rated limits are contained in a chart in the amended regulation. This change will affect all retirees, from either PSRS or PEERS, who retire effective on or after July 1, 2010. Finally, the Board modified the regulation requiring both school districts and retirees to maintain a log of their post-retirement employment. Hours worked and compensation earned each month will be required for PSRS retirees, and hours worked each month will be required for PEERS retirees. These logs must be maintained, and provided to PSRS/PEERS when requested. The forms used to keep these required logs will be included in the correspondence sent each year when a retiree is reported as working for a covered employer. This requirement applies to all PSRS and PEERS retirees, regardless of the effective date of their retirement. Links to copies of the amended regulations are below. Please feel free to contact your ESR with questions about how these changes will affect your employment of PSRS and PEERS retirees. PSRS Amendment \| PEERS Amendment