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Saturday, November 28, 2015

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:

  • 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.


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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).