Many people retire and later decide to return to the workplace. There are no restrictions if you are hired anywhere other than the municipality you retired from. If you decide to rehire with the municipality you retired from, certain rules apply, depending on your MERS retirement plan. (If you're not sure which MERS retirement plan you have, click here for help.)
If you are a MERS Defined Benefit Plan or Hybrid Plan retiree:
- You must have a true retirement before returning to work
- There must be at least 30 days between retirement date and rehire date, per IRS rules
- You and your employer cannot pre-arrange your rehiring
- You are allowed to work a maximum of 720 hours in a calendar year before your benefits are suspended.
- If you are elected to a new position, you are exempt from the 720 hours rule
- If you are re-elected to a position, there must be a two-year lapse of employment from your effective retirement date
- For more information, please review your retirement plan handbook (available here) or contact our Service Center.
If you are a MERS Defined Contribution Plan retiree:
- There are no hourly work restrictions for Defined Contribution retirees.
- If you rehire on or after normal retirement age (usually age 60, or as defined by your employer), you are not eligible to be re-enrolled in any MERS retirement plan upon rehire with the same employer.
- If you rehire before normal retirement age, you will be placed in the active retirement plan of your new position.
- These rules have no impact on your Defined Contribution distributions.