Return to Work
Thinking of Going Back to Work?
Certain restrictions apply to MainePERS members who retire before Normal Retirement Age (NRA) and return to work for the “same” employer.*
Read the Rules of the Road handout on retiring and returning to work for the same employer.
Are you retiring before Normal Retirement Age?
If you retired before your Normal Retirement Age, certain requirements apply to returning to work for the “same employer.” *
- At retirement, you must certify that you have not discussed, or negotiated, a return to work with your employer prior to terminating your employment.
- You may not return to work for at least 30 days after terminating, or before the effective date of your retirement, whichever is later; and you must file a Service Retirement Application with MainePERS before returning to work.
- You may work for up to 90 days in one year (work-year).
If you are below normal retirement age when you return to work and you don’t follow the requirements, it could mean suspension of your benefit until you reach normal retirement age, or after you stop post-retirement employment, whichever is sooner. Additional penalties may include repaying, with interest, any benefits paid during a period when they should have been suspended.
To help make sure you avoid penalties or suspension of benefits, give us a call or come in and talk to us before making plans to return to work for your same employer.
Retiring at Normal Retirement Age and Member of State/Teacher Program?
If you return to work with the “same employer” after you reach your normal retirement age (generally age 60, 62 or 65), you must wait 30 days after ending your position before returning to work; and you must file a Service Retirement Application with MainePERS before returning to work.
At Normal Retirement Age you are no longer limited to working 90 days per school year.
Effective September 19, 2019, retirees at Normal Retirement Age are no longer restricted to the number of years of service allowed or the earnings they may receive in retirement.
Retiring at Normal Retirement Age and Member of Participating Local District (PLD) Plan?
There are no restrictions under the PLD plan on retiring and returning to work for the same employer; you must, however, file a Service Retirement Application with MainePERS in order to be considered a retiree returned to work.
PLD Consolidated Plan Retiree Payment
If a retiree of the Plan returns to work for a PLD employer in a position covered by the Plan then payment during the period that the retiree is re-employed is due. The rate of the payment is equal to the greater of:
- 5% or
- the aggregate unfunded actuarial liability (UAL) rate of the Plan.
This rate is applied to the retiree’s earnable compensation.
Please note that this payment does not apply to retirees of the Plan employed by a PLD consolidated plan employer on October 1, 2018 until the earlier of termination of employment or June 30, 2021. If a retiree in this category is still employed by a PLD consolidated plan employer on July 1, 2021 he/she will be subject to the UAL payment on earnable compensation going forward.
* “Same Employer” means for:
State or Teacher retirees: Employment in any position covered under the State/Teacher Program.
Participating Local District (PLD) retirees who retire from a PLD in the Consolidated Plan: Employment with any employer participating in the Consolidated Plan.
Participating Local District (PLD) retirees who retire from a PLD that does not participate in the Consolidated Plan: Employment with the same PLD employer.