Introduction | Employees Retired for Disability  |  Employees Retired for Service | Retirees Employed as Consultants or Independent Contractors | Table of Contents

INTRODUCTION

New York State public retirees may be employed by participating agencies of NYSTRS under certain conditions. The regulations differ between service and disability retirees, as well as between NYSTRS retirees and retirees from other New York State public retirement systems. We suggest you familiarize yourself with the information contained here, as well as information available from other affected retirement systems before hiring a retired public employee since the retiree's pension could be negatively affected.

Individuals who retire under a legislated incentive program which provided additional service credit should contact the System before accepting employment since they may lose this additional benefit by their return to work.

Teachers who are hired on full-time, per annum contractual basis and are also receiving a disability retirement allowance from a New York State public retirement system must join NYSTRS. They should indicate their disability retirement status in the appropriate portion of the Application for Membership (NET-2). The tier level established for these members will be the same tier they held prior to their retirement. These employees should be reported on the employer report under their new EmplID in the same manner as all other full-time, per annum contractual employees.

Disability retirees contemplating employment should be strongly urged to contact the retirement system from which they are receiving benefits and ascertain the impact employment may have on their disability retirement allowance.

Membership is optional for teachers who are employed less than full-time and who are receiving a disability retirement allowance from a New York State public retirement system.

EMPLOYEES RETIRED FOR SERVICE

Members of New York State public retirement systems who are receiving a service retirement allowance may return to public employment under Section 211 or 212 of Article 7 of the New York State Retirement and Social Security Law.

Retirees employed under Section 212 are allowed to earn up to a specific amount each calendar year from all types of New York State public employment. For example, the earnings limit for 2008 is $30,000. Once the retiree attains age 65, there is no longer a limit on earnings.

These employees should be included on your employer report. Please refer to Section 2 or Section 3 of this Employer Manual for more specific information on the reporting of retirees.

Retirees who anticipate earnings in excess of the Section 212 limit may be employed under Section 211. This type of employment requires the employer to receive permission from the State Education Department, the Chancellor of the State University or the State Civil Service Commission – whichever would have jurisdiction over the retiree's employment. Specific instructions for acquiring permission under Section 211 are available from the approving agencies.

Retirees employed under Section 211 should also be included on your employer report. Specific instructions are available in Section 2 of this manual for school districts and Section 3 for colleges.

If an individual who is receiving a service retirement allowance is not able to obtain permission under Section 211 and will be employed for more than the Section 212 limit, then the retirement allowance must be suspended effective with the first day of service. Once the allowance is suspended, the retiree has up to one year to rejoin NYSTRS. The membership tier will be the same as the tier held prior to retirement. The retiree should contact NYSTRS for the appropriate membership application.

Since the provisions governing employment after retirement are complex, those considering re-employment should meet with a NYSTRS information representative at one of our consultation sites, or contact our Retired Member Services section at (800) 356-3128, Ext. 6150 (447-2900 if calling from the Albany area).

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RETIREES EMPLOYED AS CONSULTANTS 
OR INDEPENDENT CONTRACTORS

Earnings are unlimited for those retirees who joined the System prior to May 31, 1973; however, individuals hired in this capacity must satisfy the following criteria:

1. The service being rendered cannot be any function or operational task which would normally be completed by a regular employee of the district.

2. The consultant must be working as a bona fide independent contractor rather than an employee.

All consulting agreements must be reviewed by the System prior to the commencement of services to determine whether or not an individual is a consultant for retirement benefit purposes. Improper classification could result in substantial penalties to the retired member if s/he exceeds the earnings limitations. The following documentation should be provided prior to the commencement of services.

1. A statement describing the specific work or project, including the projected length of the project, duties and responsibilities of the retiree.

2. The name and title of the person or persons to whom the independent contractor will report.

3. A copy of the agreement under which the retiree is to render services to the employer.

4. A copy of the Board minutes (if the employer is a school district) approving the agreement.

5. A statement as to how payment will be made (e.g., on the regular payroll with standard deductions, by voucher, etc.).

Members who joined the System on or after May 31, 1973 are subject to the limitations of Section 211 and 212 of Article 7 of the RSSL regardless of the nature of their employment.

NYSTRS has the statutory authority to require the submission of any and all records and other information it may deem necessary in connection with its review; failure to honor NYSTRS' request could result in an adverse determination by NYSTRS. The characterization of employment as "consultant" or an "independent contractor" is not binding on NYSTRS and does not necessarily require NYSTRS to accept the characterization or description. All such agreements are subject to audit at any time as deemed necessary by NYSTRS.

Additional guidance is contained in Administrative Bulletin 2006-1, Earnings from New York Public Employment After Retirement, and the Guidelines to Assist Reportability for Consultants, Independent Contractors and Casual Employees.

Specific questions can be addressed by calling our Retired Member Services Unit at (800) 356-3128, Ext. 6150 (447-2900 if calling from the Albany area).

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Updated 7/08.