Senate Bill 1049 Changes to PERS: Work After Retirement
Changes effective January 1, 2020
This information may not apply to all members and may not reflect your individual situation.
Are you a PERS retiree and want to work for a PERS-participating employer?
Are you already working as a PERS retiree and want to know about Senate Bill 1049 changes?
Senate Bill 1049 simplifies the rules for “Work After Retirement.” Starting in 2020, there are no limitations*** on the number of hours most retirees can work for a PERS-participating employer and still receive their PERS pension benefit.
PERS retiree means a Tier One, Tier Two, or OPSRP member who has officially retired from PERS and is receiving their PERS pension benefit. This includes retirees who took a lump-sum pension benefit.
Note that SB 1049 generally lifts the statutory hour limitations*** if you are employed by a PERS-participating employer as a PERS retiree and retired at "normal retirement age."
PERS is not involved in the hiring decisions between retirees and employers. Whether you are hired by a PERS-participating employer as a PERS retiree or not, and any other limitations your employer may have, is between you and your employer. Your employer may have other limitations on the number of hours you can work. Note that PERS will administer your membership status, however, as required by the PERS statutes.
The SB 1049 changes, from a PERS perspective, simply impact whether a PERS retiree can work unlimited (or limited) hours and still receive their pension benefit.
In 2019 – Before SB 1049 Changes Take Effect
Currently, some retired PERS members are employed by PERS-participating employers as “PERS retirees.” In most instances, the retirees can continue to receive their PERS pension and other retirement benefits (without accruing any new benefits) and receive wages from their employer for continuing to work. However, there are limits to the number of hours some members can work.
- For 2019, if you are a Tier One/Tier Two retired member, you may be employed by a PERS-participating employer and continue to receive your retirement benefits as long as you do not work 1,040 hours or more in the calendar year. Learn more and see exceptions to this rule.
- For 2019, if you are an OPSRP retired member, you may be employed by a PERS-participating employer and continue to receive your retirement benefits as long as you do not work 600 hours or more in the calendar year. Learn more.
In 2019, employers pay only the retirees’ wages and do not pay the PERS Employer Contribution rate on those wages. No additional retirement benefits are accrued by the retiree.
2020-2024 – SB 1049 Changes: Work After Retirement Limitations Removed for Retirees
From January 1, 2020, through December 31, 2024, most*** retirees may work for a PERS-participating employer for an unlimited number of hours while continuing to receive their pension benefit. Whether you are hired by a PERS-participating employer as a PERS retiree or not is between you and your employer. Read information for employers.
If you are employed as a PERS retiree for a PERS-participating employer in 2020-2024 (whether hired before, or during that time), you:
- May continue to receive your PERS retirement benefits (but not accrue any new retirement benefits);
- Receive wages from your employer; and
- Have no limitations*** to the number of hours you can work. Restrictions may apply if you retired early, and your employer may have other limitations (see below).
View these flowcharts to see if you can work unlimited hours if you are employed as a retiree:
***Note: You must have retired at or after “normal retirement age” (Tier One/Tier Two, OPSRP) or with 30 years of service (25 years for most Police & Fire members) to be eligible for unlimited retiree hours under SB 1049.
If you retire/retired earlier than normal retirement age, you must have a complete break in all PERS-participating employment for at least six months in order to be eligible for unlimited retiree hours under SB 1049. Otherwise, the existing Tier One/Tier Two and OPSRP limits of 1,039 and 600 hours, respectively, apply.
Your employer may have other limitations on the number of hours you can work. Any decision on terms of employment is between you and your employer.
In compliance with the Americans with Disabilities Act, PERS will provide documents on this page in an alternate format upon request. To request this, contact PERS at 888-320-7377 or TTY 503-603-7766.