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 return to work at the municipality you retired from, certain rules apply, depending on your MERS retirement plan. These rules will apply if you are employed by that municipality in any capacity, including being retained as an independent contractor.

Help me figure out what program I have.

If you retire and you are returning to a regular (non-elected/appointed) position, the following rules apply to Defined Benefit Plan or Hybrid Plan:

• 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.
• The limit that only allows you to work 1,000 hours in a calendar year has been waived through December 31, 2027. This means that currently there is no limit to the amount of hours you may work each year.

If you are a MERS Defined Contribution Plan retiree:

• You are considered “retired” once you’ve met normal retirement age. For most municipalities, the normal retirement age is 60. However, some municipalities have adopted a different normal retirement age and you will want to verify with your employer.
• 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.
• You must have 60 days of separation between termination and returning to work.
• You may be re-enrolled in the defined contribution plan if you are rehired into the same covered position (applies to any rehire dates after 9/26/2022).
• In-Service distributions are allowed while you are active, as long as you are at least age 60.
• There is no limit to the hours you may work in a calendar year.

If you retire and you are returning to a voter-elected position (or are appointed to a voter-elected position), the following rules apply to Defined Benefit, Hybrid or Defined Contribution:

• 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 rehired into a position covered by the MERS Defined Contribution plan, you may be enrolled in that plan subject to the mandatory requirements of that division (applies to rehire dates after 9/26/2022).