Returning to Work After Retirement How Your IPERS Benefits Are Affected by Reemployment

Limits on Reemployment Earnings

If You Are Age 55 up to Age 65

If you are age 55 up to age 65, and return to work, you cannot earn more than $30,000 per year or the annual social security wage limit (visit www.ssa.gov), whichever is higher. These wage limits may change each year. The wage limit does not apply if you are reemployed as an elected official.

Employer contributions made to qualified and nonqualified retirement and deferred compensation plans and arrangements will be counted as wages when determining the earnings limitation, even though they will not be treated as IPERS-covered wages.

If you exceed the annual earnings limit after returning to work, your monthly retirement benefit for the remainder of the calendar year will be reduced by 50 cents for each dollar you earn over the earnings limitation.

IPERS will notify you annually of any overpayment you received while you were reemployed. You have the option to have your monthly retirement benefit reduced or to repay IPERS in a lump sum. If the monthly recovery amount exceeds your monthly IPERS benefit, IPERS will withhold your entire monthly benefit until the overpayment is recovered. You may contact IPERS prior to exceeding the earnings limitation to have your benefit suspended to limit the amount of overpayment.

If You Are Age 65 or Older

If you are age 65 or older, IPERS does not impose a limit on the amount of wages you can earn (see A Note About Social Security for information about social security limitations).

Receiving an IPERS Disability Benefit

If you are receiving an IPERS disability benefit and return to covered employment after completing a bona fide retirement, your IPERS benefit will be suspended if you are under age 55. If you are over age 55, your benefit amount will be reduced to the amount you would have received without the disability provision applied to your benefit.