RETURN TO WORK INFORMATION
Senate Bill 260, which is effective 7/1/12, created earnings limits for retirees from the State Employees' Pension Plan (Plan) who are working with an employer participating in the Plan in casual/seasonal or substitute positions that meet the exception rule for retirees returning to work. The annual earnings limit in one of these positions is now $19,240.
If an individual does exceed the allowable earned income, the individual's state pension benefit will be reduced $1 deduction for every $2 earned over $19,240. The deduction will begin in July of the year following the calendar year for which the earnings are reported.
The Office of Pensions will begin monitoring the earnings limit January through December 2013. If a retiree earns more than the limit, reduction of pension benefit will begin in July 2014.
In addition, Senate Bill 260 created an obligation for retirees who contract with an employer participating in the Plan, or who represent any private enterprise that has a contract with an employer participating in the Plan, to complete a form for the determination of the individual meeting the definition of employee within the Plan. Please see Certification of Worker Status Form found on this website.
Return to Work FAQ's
Return to Work Flowchart
Return to Work Overview
Certification of Worker Status Form
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