On July 1, 2001, the Post-Retirement Employment bill (ESSB 5937) became law. This law allows PERS Plan 1 retirees to work for a Washington state employer for up to 1,500 hours per calendar year without a reduction in their pension.
If the retired employee works more than 1500 hours, the retirement annuity stops for the rest of the year. On January 1st of the following year, the retirement annuity begins again, and a new 1500-hour block begins.
This employment bill also allows retirees from PERS Plans 2 and 3 to work up to 867 hours per calendar year without a reduction in pension. The annuity stops when the 867-hour threshold is crossed, yet recommences January 1 of the following year.
TRS 1 retirees may work 1500 hours in a fiscal year.
To meet the definition of “retired,” a retiree must remain separated for one full calendar month before returning to employment. If eligible to retire, your retirement date begins the first of the month, following termination of employment with WSU. For example, say a WSU employee retires on June 18. The retirement date would be July 1, and he or she would be eligible for rehire on August 1. There must be no implicit or explicit expectations of reemployment, since this could affect the Department of Retirement Systems’ (DRS) determination of retirement eligibility.
Retiree rehire is entirely at the option of the state employer.
Working for employers that do not offer a retirement program through the DRS carries no pension implications. For example, working for private industry or for a governmental unit in another state will not affect your DRS annuity. Work restrictions do not apply if you have not started a monthly income from one of the PERS plans (PERS 1, 2 or 3).
If you are a participant in the WSU Retirement Plan (TIAA-CREF), these provisions do not apply. The WSU Retirement Plan allows for rehire at a maximum of 40 percent of a full-time equivalent.
Get more information from the DRS web site:
