kpers@kpers.org      Toll-free: 1-888-275-5737 or Topeka: 785-296-6166

Working After Retirement

Thinking about working after retirement? Here’s some things you need to know before you punch back in. Keep in mind, there are no rules if you go back to work for a non-KPERS employer.

Currently a working retiree? Read more.

You Have a Waiting Period

Kansas law requires a 60-day waiting period for KPERS retirees who return to work for Retirement System employers. KP&F retirees have a 30-day waiting period.

Your waiting period begins the day after your retirement date. Not the last day at your employer or your last day on payroll. Your retirement date is always the first day of a month.

No Prearrangements
Before retirement and during your waiting period, you can’t have a prearranged agreement to return to work. Not allowing prearrangements is very important to KPERS. It helps keep our eligible status with the IRS.

If you are found to have a prearrangement to return to work, your retirement benefit will be suspended. This would start the month you return to work and end 6 months after you quit working.

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You Have an Earnings Limit

If you go back to work for any KPERS employer, you’ll have a $25,000 earnings limit each calendar year. This includes part-time and seasonal positions, as well as retirees hired by a third-party contractor to provide services to a KPERS employer. But there are a few exemptions. You won’t make KPERS contributions or earn more KPERS service. But your employer will make working-after-retirement contributions to KPERS.

How the Limit Works
If you reach the earnings limit, you can:
  1. Stop working for the rest of the calendar year. You’ll still get your retirement benefit.
  2. Keep working. But your retirement benefit will stop for the rest of the calendar year. Your benefit will start again in January or if you stop working. Whichever happens first.
If You’re a KP&F Member

You’ll have a $25,000 earnings limit. But only if you go to work for an employer you worked for your last two years of KP&F employment.

There Are Some Exemptions

Learn more: State/Local (PDF) | Schools (PDF)

Good to Know

  • All retirees will have the earnings limit. Except those who are grandfathered or have an exemption.
  • If you’re working in a position not covered by KPERS benefits (part-time, seasonal, etc.), you’ll have an earnings limit.
  • These rules apply to retirees who go back to work in the same retirement plan. If you return to a covered position in KP&F or Judges, you’ll be enrolled as a regular, active member of that plan.
  • The earnings limit runs on the calendar year (January 1 to December 31).
  • Community colleges follow the non-school rules for working after retirement, including earnings limit and exemptions.

 

For Retirees Currently Working

Working after retirement rules changed July 1, 2016. But you might be grandfathered under the old rules. It depends on when you retired and when you returned to work. Licensed school professionals have different rules.

Grandfathered Group

You may be grandfathered indefinitely if you:

  • Accepted your position before May 1, 2015.
  • Stay with the same job/same employer and don’t have a break in service.

Licensed school professionals are not grandfathered indefinitely. If you’re a licensed school professional and retired before May 1, 2015, you’re exempt from the earnings limit until July 1, 2020.

Great-Grandfathered Group

Working-after-retirement legislation in 2006 created an original grandfathered group. If you were in the original group and are still working, you’re still under the original 2006 rules.

If you returned to a different employer

  • Returned to work before July 1, 2006, and still working May 1, 2015
  • No earnings limit as long as you stay with the same employer with no break in service

If you returned to the same employer

  • Returned to work before July 1, 2006, and still working May 1, 2015
  • $25,000 earnings limit (increased from $20,000)

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Kansas Public Employees Retirement System
611 S. Kansas Ave, Topeka, KS 66603
Toll-free: 1 888 - 275-5737
Email: kpers@kpers.org