Working After Retirement - KPERS, Correctional Officers and KP&F

Working after retirement can affect a member's benefits. Generally, if a member works for a non-Retirement System employer, there are no restrictions. However, some rules apply if a member works for an affiliated employer or a third party that contracts with a school employer.

Waiting Period

Kansas law requires a 60-day waiting period for retiring KPERS members and a 30-day waiting period for retiring KP&F members before returning to work for any Retirement System employer. The member's retirement date is not the last day at your employer. It is usually the first day of the month following the member's last day on payroll.

To calculate the waiting period, count the day after the member's retirement date as day one.

KPERS 60-Day Example
If the retirement date is July 1, July 2 is day one and the member cannot begin employment with any Retirement System employer until September 1.

KP&F 30-Day Example
If the retirement date is July 1, July 2 is day one and the member cannot begin employment with any Retirement System employer until August 1.

Reporting Retiree Employment

When you hire a retiree, use the enrollment section in the employer web portal. Remember to select "Plan 6" when entering your employer number on the login page. For retirees with an earnings limit, complete a Retiree Earnings Limitations Form (KPERS-15S) if they reach the limit.

• School Employer Decision Tree (PDF, 73KB)

Employer Contributions

Please see the following designated agent memos for current contribution information.

• June 15, 2009, School Employers – Update on Working After Retirement
• June 3, 2009, School Employers – Working After Retirement Changes
• May 29, 2009, Non-School Employers – Working After Retirement Waiting Period & Contribution Rates

KPERS Earnings Limit

KPERS retirees have a $20,000-per-year earnings limit if:

• The member retired on or after July 1, 1988, and
• The member goes to work for an employer he or she worked for during the last two years
  of KPERS participation.

Exceptions to the Earnings Limit

There are certain situations where a retiree can return to work for the same employer and be exempt from the earnings limit. Retirees are directed to contact their designated agent or the Retirement System for questions about their individual situation.

Licensed Nurses
Retirees who return to work as licensed nurses at certain State institutions are exempt. Retirees who retired with early retirement (i.e. age 55 with ten years of service) after April 18, 2005, are not eligible and will continue to have the earnings limit. Employers make employer contributions at the actuarial rate. Eligible employers include:

• Atchison Juvenile Correctional Facility
• Beloit Juvenile Correctional Facility
• Kansas Juvenile Correctional Complex
• Kansas Neurological Institute
• Kansas Soldiers' Home
• Kansas Veterans' Home
• Larned State Hospital
• Larned Juvenile Correctional Facility
• Osawatomie State Hospital
• Parsons State Hospital and Training Center
• Rainbow Mental Health Facility
• Topeka Juvenile Correctional Facility

Legislative Positions
Certain legislative positions are exempt from the earnings limit. Retirees should contact their designated agent.

Licensed School Personnel
Some KPERS retirees returning to a licensed school position are exempt. "Daily call" K-12 substitute teachers do not have an earnings limit. Daily-call subs are temporary and paid on a daily basis for their services. They are not required to report to work every day.

Until July 1, 2012, other school members returning to work in a licensed position may also be exempt. They need to retire with "full" retirement or have retired with early retirement before March 28, 2009. Full retirement includes the 85-point rule, age 62 with ten years of service and age 65 with one year of service. Licensed school employees retiring March 28, 2009, or after with early retirement are not eligible. An employee returning to work in an non-licensed position is not eligible.

Long-term substitutes are included in the exemption if they are under contract. Those contracting through a third-party entity with their previous employer are not exempt if they retire with "early" retirement after April 1, 2009.

Who Is “Licensed” and Eligible for the Earnings Limit Exemption?
The Department of Education is responsible for accepting licenses from school personnel and has provided a list of positions eligible for the earnings limit exemption.

Licensed school member exemptions are complex. Contact the Retirement System for questions about retirees wishing to return to work in a licensed school position.

KP&F Earnings Limit

KP&F retirees have a $15,000-per-year earnings limit if:

• The member retired on or after July 1, 1988, and
• The member goes to work for an employer he or she worked for during the last two years
  of KP&F participation.

How the Limit Works

If the member reaches the earnings limit, he or she has two choices.

Choice #1:
End employment for the rest of the calendar year.
Member continues to receive retirement benefits.

Choice #2:
Continue working and the member's retirement benefits will stop for the rest of the calendar year.
Benefits will begin again in January the following year or if the member ends employment, whichever happens first.

Employers are responsible for notifying KPERS when a member reaches the earnings limit for the calendar year. Complete an KPERS Retiree Earnings Limitation Form (KPERS-15S) or KP&F Retiree Earnings Limitation Form (KP&F-15S).

Working for a Different Employer

If a retiree goes back to work for a different employer - one he or she didn't work for during the last two years of Retirement System participation - the retiree does not have an earnings limit. Employment does not affect the retiree's benefits.

Did a Retiree Really Change Employers?

The State of Kansas is considered one employer. State agencies, boards, commissions and Board of Regents institutions are all part of the State of Kansas. Going from one to another is not considered changing employers. Moving from a KPERS to a KP&F position, or vice versa, is considered a change and the retiree would not have an earnings limit.

Every school district is a different employer. If a member retired from a school district, he or she can go to work for a different school district with no earnings limit as long as he or she did not work there during the last two years of KPERS participation. (No earnings limit for "daily call" K-12 substitute teachers.)

Working for the Same KPERS Employer

Generally, if a retiree goes back to work for the same KPERS employer – one he or she worked for during the last two years of KPERS participation – the retiree will have an earnings limit. The legislature has created some exceptions.

Retired judges have other options for returning to work.