Retire/Rehire....not in New York!!

TRS: Know the rules about working after retirement

New York Teacher - May 31, 2007

Are you planning to work for a public employer after you retire? If you are 65 or older, there is no limit on how much you can earn in New York state public employment. If you're younger, you need to know about the earnings limit, which is set by the state Legislature and governor.

The 2007 earnings limit for retirees under age 65 who are working is $30,000. If you expect to earn more than $30,000 in 2007, you may either suspend your retirement benefit or work under Section 211 if your employer receives prior approval from the state entity with jurisdiction over your employment.

The State Education Department is the approving authority for school district employment. Your employer must request a waiver.

If you return to work for the same employer from which you retired, SED requires that six months elapse before resuming employment. The six-month waiting period does not apply if you work for a different school district, if you are employed by the State University of New York or if you earn less than the statutory limit for that calendar year.

If you are considering working for a school district as a "consultant," you must have the agreement reviewed and approved by the New York State Teachers' Retirement System. As a consultant, you cannot be an employee of the district or perform a function that normally would be performed by a teacher or administrator.

If your consultant agreement is approved and your date of membership is prior to May 31, 1973, your earnings are unlimited. If your membership date is on or after May 31, 1973, you are subject to earnings limits.

Failure to get TRS approval may eventually result in a substantial loss of your pension benefits.

A third-party agent may inform you that your earnings in retirement are unlimited as long as your pay does not come directly from the school district. This is not correct.

If you joined the system after May 31, 1973, you must report your earnings to TRS on an annual basis.

You can find more information about post-retirement earnings, including the rules governing work as a consultant, in the TRS pamphlet "Working in Retirement," available online at www.nystrs.org.

You may have unlimited earnings (without affecting your TRS retirement benefit) in the following cases:

• private or federal employment;

• public employment outside New York state;

• New York state public employment beginning in the calendar year you turn age 65; and

• New York state public employment as an elected official, inspector of elections, poll or ballot clerk, commissioner of deeds, juror or notary public.

Note: If you are receiving a disability retirement benefit, the rules for working in retirement differ. Tier 3 and 4 members must be permanently disabled from all employment to qualify for a benefit. Employment of any form may jeopardize your disability.