Returning to Work After Retirement
How Your IPERS Benefits Are Affected by Reemployment |
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Where You Work Makes a Difference
If you are retired and return to work with an employer that is not covered by IPERS, there are no employment restrictions—you can work as soon and as much as you wish with no effect on your IPERS benefits. However, please keep in mind that Social Security has certain income limitations that apply to your social security benefit (see A Note About Social Security).
If you are retired, younger than age 70, and return to work for an IPERS-covered employer, there are certain restrictions you should understand before beginning any employment. You must have a bona fide retirement that meets both of these conditions:
- End all service with an IPERS-covered employer, regardless of whether your position with that employer is covered by IPERS.
- Not return to work with a covered employer for 1 month or to IPERS-covered employment for 3 additional months.
The bona fide retirement period begins with your first month of entitlement for retirement benefits as approved by IPERS.
| Bona Fide Retirement Example* |
| If your first month of entitlement to benefits is… |
January |
February |
March |
| You may begin employment with a covered employer in a noncovered position in… |
February |
March |
April |
| You may begin employment with a covered employer in a covered position in… |
May |
June |
July |
| You can begin employment with a noncovered employer at… |
Any time |
*Example assumes you are between ages 55 and 70.
You are not eligible for retirement benefits if you end and then return to covered employment before filing a completed application for benefits. In addition, you cannot enter into any employment agreement (verbal or written) until you have received at least 1 benefit payment from IPERS.
| What Is a Bona Fide Retirement? |
To have a bona fide retirement, you must meet all of the following conditions:- Terminate employment with all IPERS-covered employers, including noncovered service with covered employers.
- Apply for and begin receiving monthly benefit payments.
- Remain unemployed with all covered employers for 1 month, and not work in covered employment for 3 additional months.
The bona fide retirement period begins with your first month of entitlement for retirement benefits as approved by IPERS.
If you are a licensed health care professional or part-time elected official, please contact IPERS. Special, less restrictive, rules may apply to you. |
Exceptions to Bona Fide Retirement
Licensed Health Care Professionals: Licensed health care professionals may return to IPERS-covered employment in certain public hospitals after their first month of entitlement rather than the 4-month period described above (effective July 1, 2004–June 30, 2010).
Members Age 70 and Older: Members who are age 70 and older may begin receiving benefits without ending their IPERS-covered employment. However, you must end all employment with covered employers for at least 30 days in order to have your retirement benefit recalculated. Please keep in mind that you must begin receiving your IPERS retirement benefits when you are age 70½ if you are no longer employed by an IPERS-covered employer.
Part-Time Elected Officials: Part-time elected officials may retire and retain their office if IPERS is notified in writing of the intent to retire, end all covered employment, and end IPERS coverage for the elected position.
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