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While working in retirement may seem like contradiction,
it can be a rewarding and profitable experience. Whether it's to help offset rising
costs or to satisfy a need to be connected and productive, returning to the workplace
has become a common practice.
About 5 million Americans over the age of 65 — including almost 310,000
seniors over the age of 80 — work, according to the U.S. Department of Labor's
statistics as of January 2004. The federal Bureau of Labor Statistics projects that
by 2012, one-fifth of the U.S. workforce will be comprised of those 55 and older.
NYSTRS service retirees can have unlimited
earnings working in the private sector or under several other specific
conditions. However, while a majority of NYSTRS retirees can earn up to a legislated
limit (currently $30,000) in a calendar year working in NYS public employment without
jeopardizing their pension, many others wishing to earn more must receive a waiver
from the entity with jurisdiction over their employment.
Other NYS public employment options include working as a consultant (see
definition, approval requirements and earnings limits in the chart below) or, in limited cases, suspension of
your retirement benefit while you're working.
If you are receiving a disability retirement benefit, the rules for working in
retirement differ. Refer to the Disability
Retirement section for more information.
This pamphlet will help you understand your options so you can choose an
appropriate course of action, and protect and enhance your income in retirement.
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| Unlimited
Earnings |
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You may have an unlimited income without affecting your NYSTRS retirement benefit
in the following cases:
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Private or federal employment.
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Public employment outside of New York State. |
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As an elected official, inspector of elections, poll or ballot clerk,
commissioner of deeds, juror, or notary public. |
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Working as a consultant for a NYS public employer if your date of
membership is prior to May 31, 1973, and your contract has been received
and approved by NYSTRS. |
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All employment (including New York State public service) beginning in the
calendar year you turn 65. |
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| Limited
Earnings |
| If you choose to work for a New York State public employer in retirement, including
a school district, you will have some choices to make. The chart below briefly presents the options to you.
For a more detailed explanation of each, please consult the Retired Members' Handbook, available on
our Web site at www.nystrs.org. Also
see the Compilation of Laws Covering NYSTRS in the Library on Web site for more
details about the sections of law covering working in retirement (Retirement &
Social Security Law, Article 7, Sections 210-215). |
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Third-Party Employment
A third-party employer may inform you that your
earnings in retirement are unlimited as long as your pay does not come directly
from the employer. This is NOT necessarily
correct.
If you joined the System on or after May 31, 1973 and are hired to fill a
position with a New York State public school or other public employer in the
state, you will always be subject to the earnings limit and
provisions of Section 212 and 211 of the Retirement and Social Security
Law.
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| Reporting Your Earnings |
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If you work for a NYSTRS participating employer (including New York State public
school districts, qualifying charter
schools, the state Education Department, SUNY or state community
colleges) you must provide your NYSTRS EmplID to your
employer. Your annual earnings will be automatically
reported to us.
If you work as a consultant (either independently or through a third-party
employer) and you joined NYSTRS on or after May 31, 1973 or
you work for any other New York State or New York City public employer, you
must report your earnings to us on an annual basis. A form to report your
earnings for the previous calendar year is provided in the winter edition of the
retiree newsletter Resource.
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| Disability
Retirement |
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Tier 1 and 2 members retired for disability may engage in gainful employment.
However, earnings during a calendar year are limited to the difference between your
final average salary (or, if greater, the salary you would now be receiving had you
continued in service) and your retirement benefit. Investment returns and/or other
disability benefits are not counted as employment income.
We will contact you annually and request a report of your gross employment
earnings. If you earn more than the limit, your disability benefit will be reduced by
the amount of the excess. If you return to teaching at a salary greater than your
final average salary, your disability benefit will be discontinued and you will be
restored to active NYSTRS membership.
Tier 3 and 4 members must be permanently disabled from all employment to qualify
for a benefit. Employment of any form may jeopardize a disability benefit.
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Returning to Work for a NYS Public Employer
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Generally Temporary or Occasional
(part-time, seasonal)
Section 212, R&SSL1
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No
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Yes
(Currently $30,000.)
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Notify NYSTRS if you expect to exceed the limit. Provide EmplID, gross
earnings and employer information. If you exceed the earnings limit, you may
be required to repay NYSTRS one day of your retirement benefit for each day
you work beyond the limit.
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Generally Regular
(full-time contractual)
Section 211, R&SSL1
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Yes
(Waiver needed from entity with jurisdiction over employment.)
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No
(Unless it is for an employer you earned pay from in the two years
prior to retirement and those salaries were used in your final average
salary.2)
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Under Section 211, a retired public employee is prevented from working in the same or similar position for one year from the retiree's date of retirement from a New York State public retirement system.
Approvals are generally limited to one year.
Waivers granted by the: NYS Department of Education; Chancellor of the NYC Department of Education; Trustees of the City University of New York; a SUNY or community college president; and, NYS or NYC Civil Service Commission. (Full-time contractual service where the salary remains
under the Sec. 212 earnings limit may not require a waiver. Contact NYSTRS for
information.) |
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Consulting
(including employment where you are hired and/or paid by a third-party
firm)
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Yes
(NYSTRS must review and pre-approve your contract.)
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No, if you joined NYSTRS before May 31,
1973.
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Yes, if you joined NYSTRS on or
after May 31, 1973. The Section 212 earnings limit applies.
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A consultant is an independent contractor, not an employee of the
district.
You cannot perform a function that would be performed by a
teacher/administrator in the district.
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Extended Period
(full-time contractual for more than two years)
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No
(if you suspend your NYSTRS benefit. Call (800) 356-3128, Ext.
6150 before deciding.)
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No, if you suspend your benefit.
Otherwise the Section 212 earnings limit applies. |
If you suspend your benefit and work for a participating employer, you can
immediately rejoin NYSTRS with a date of membership of the last day of your
original tier. Restored membership is mandatory in year two.
You may qualify for recalculation or additional benefits. 3,
4
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| 1 Retirement & Social Security
Law |
| 2 In this instance, assuming approval
is granted, the amount you may earn is the difference between your maximum
retirement benefit and your final average salary (or, if greater, the salary you
would be receiving had you not retired). You cannot renounce previously reported
earnings to achieve unlimited earnings in retirement. |
| 3 Tier 1, 2 and 4
members (including Tier 3 members who retired under Tier 4) must earn two years
of credit for an additional benefit or five years of credit for a full
recalculation. Members who retire under Tier 3 must earn five years of credit for
either an additional benefit or a full recalculation. If you resume retirement
without meeting the requirements necessary for an additional benefit or a full
recalculation, your original benefit will remain unchanged. |
| 4 If you qualify for an additional
benefit or recalculation, you will lose service credit gained
through a previous state retirement incentive. Also, for a full recalculation,
you must repay the System the benefits received prior to suspending your
retirement benefit plus interest. This repayment can be made in a
lump sum or as a reduction in your retirement benefit based on
the actuarial equivalent of the lump sum. If you choose the latter, the reduction
is permanent throughout your retirement. |
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| If you still have questions after reviewing this brochure,
please call NYSTRS at (800) 356-3128, Ext. 6150. A NYSTRS representative will be happy
to assist you. |
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New York State Teachers' Retirement System
10 Corporate Woods Drive
Albany, NY 12211-2395
www.nystrs.org
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