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Tuesday, August 30, 2016

Working in Retirement

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:

Effective January 1, 2016:
If you retire and you are returning to a regular (non-elected/appointed) position, the following rules apply:

  • You must complete and submit the Working in Retirement Certification form (F-29c), signed by both you and your employer, to MERS.
  • You must have a bona fide separation before returning to work, per IRS rules. Bona fide separation is defined as no formal or informal agreement to return to work prior to retirement.
  • You must have 60 days of separation.
  • You may work up to 1,000 hours in a calendar year.

If you retire and you are returning to an elected/appointed position, the following rules apply:

  • You must complete and submit the Working in Retirement Certification form (F-29c), signed by both you and your employer, to MERS.
  • You must have a bona fide separation before returning to work, per IRS rules. Bona fide separation is defined as no  formal or informal agreement to return to work prior to retirement.
  • If you are re-elected/appointed into the same position, you must have two years of separation.
  • If you are elected/appointed into a different position, you must have 60 days of separation.
  • You are not subject to any hour limitation.

If you are a MERS Defined Contribution Plan retiree:

  • You must have a bona fide retirement before returning to work, per IRS rules. Bona fide separation is defined as no formal or informal agreement to return to work prior to retirement.
  • There are no hourly work restrictions for Defined Contribution retirees.
  • Regardless of age, upon rehire, you will be re-enrolled into the MERS Defined Contribution Plan.
  • These rules have no impact on your Defined Contribution distributions.

 

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Disclaimer
The information contained in this Web site is being made available as a public service. The information is not intended to constitute legal or investment advice, or to replace official versions of that information. Benefit Estimates or Service Credit Purchase estimates requested through this Web site are not official descriptions of any benefits, and do not represent a promise by MERS to provide any benefit(s) to any person(s). No one can detrimentally rely upon the information provided in, or requested through this Web site. MERS reserves the right to correct any errors, and presents this information without warranties, express or implied, regarding the information?s accuracy, timeliness or completeness. If you believe the information is inaccurate, out-of-date, or incomplete, or if you have problems accessing or reading the information, please call MERS at 800.767.MERS (6377).