Returning to Work After Retirement
How Your IPERS Benefits Are Affected by Reemployment |
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Recalculating Your Benefits
When you are ready to retire again, you should contact IPERS to apply for a recomputation of benefits to provide any additional benefits you earned during your reemployment.
Your reemployment period (the period you work after you retire) is considered a separate period of service. Any benefits you receive for reemployment will be calculated as a separate benefit (or annuity). However, the total years of service in both annuities cannot exceed 30 for purposes of this calculation. You may elect to add this monthly payment to your original benefit or to receive a lump-sum payment. If you end reemployment and do not request a monthly payment or lump-sum payment within a year, a lump-sum payment will automatically be paid to you.
If your reemployment period is less than 4 years, the formula used to recalculate your additional benefits is different from the standard formula. Your benefits will be determined using a money purchase formula that is based on the amount of contributions you made while reemployed. Reemployment does not always increase monthly benefits, in which case, a  lump-sum payment is made.
Let’s take a look at an example of how retirement benefits are recalculated.
| Example: Returning to Work After Retirement |
| Julie retired with 26 years of service and was drawing a monthly pension. She returned to work for 4 years at an average wage of $10,000 each year. Since her total years of service is 30 or less, she would accrue an increase in her monthly pension of $66.67 per month or a lump-sum distribution of $3,980. |
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