Employer Responsibilities for Rehired Retirees

ERSGAAn ERS retiree who is re-employed by an employer participating in ERS, JRS, or LRS is limited to no more than 1,040 hours
worked per calendar year.

Failure to adhere to the 1,040 hour work limitation will result in the suspension of the retiree’s benefit for the remainder of
the calendar year. Employers may also be liable for any pension benefits paid after the retiree exceeds 1,040 hours if the
employee is not reported in a timely manner.

For rehired retirees, HR must:

  • Notify ERSGA of any current or newly hired retirees by submitting a Rehired Retiree Reporting Form within 30 days of hire. ERSGA recommends that employers inquire about a new hire’s retirement status during the hiring process.
  • Report monthly hours worked for rehired retirees. A Rehired Retiree reporting module is available on the Employer Desktop.
  • Ensure that rehired retirees have not been enrolled or are not contributing to the GDC plan.
  • Submit the completed Independent Contractor Verification form, when applicable.

PSERS rehired retirees less than age 65 must be re-enrolled as active contributors to the plan and their PSERS pension
will stop. PSERS rehired retirees age 65 or older (or a rehired retiree who attains age 65) must elect to either cease pension
benefits and be re-enrolled as active contributors to the plan, or continue receiving pension benefits and not be re-enrolled
in the plan.

For PSERS rehired retirees less than age 65, HR must:

  • Complete the PSERS Rehired Retiree Reporting Form with the employee.
  • Send completed form to PSERS indicating employee’s election to resume active contributions or continue retirement.

For members who elected to resume contributing and again retire:

For more details on re-employment after retirement, visit the ERSGA website. From the Employer page, download a copy of the applicable Plan Employer Manual.

For more recent ERSGA updates, check out their Employer Newsletter.

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