Rules for working after retirement apply to all Tier One and Tier Two retirees, regardless of benefit payment
option.
The rules do not apply to members who have a disability retirement.
If you return to employment with a private employer, your PERS retirement benefits will continue unchanged. PERS
does
not limit the hours you may be employed or the amount of money you can earn from a private employer.
If you return to employment with a public employer in the state of Oregon after retirement, Oregon statutes impose
certain limitations on that employment.
It is your responsibility to be aware of these limitations and to track your hours to ensure compliance. If you
exceed
the work hour limitations, you will be accountable.
If you decide to return to work with a public employer in the state of Oregon after retirement, you can control the
number of hours you work and accordingly, whether you comply with or violate the limitation.
It is your responsibility to remain in compliance with the limitations applicable to you if you do not want your
retirement benefits to stop.
PERS recommends that you track the hours you work in order to avoid exceeding the work hour limitations for each
calendar year.
The following sections describe the limitations for members who retired for service. Different rules apply to
members
who retired due to disability.
If you are a Tier One or Tier Two retired member, you may be employed by an Oregon public employer and continue to
receive retirement benefits as long as the period (or periods) of employment with one or more participating public
employers does not total 1,040 hours or more in a calendar year.
Note that hours are counted in the year in which you performed the service, not in the year in which the hours were
reported.
Hours of employment are hours worked on or after your effective retirement date for which you receive wages, salary,
paid leave, or other compensation.
Note: In previous years, the hour limitation was described as "may not exceed 1,039 hours in a calendar year," but the
statutory limitation in ORS 238.082(2) is actually “may not total 1,040 hours or more in a calendar year." This
distinction had little importance because hours of employment were previously reported in whole hours, not fractions.
However, with the implementation of electronic reporting, employers may now report fractions of hours, resulting in
reported employment hour totals that can marginally exceed 1,039 but not total 1,040. To accommodate this reporting
capability, the limit is now described as "may not total 1,040 hours."
It is still a good idea for retirees to think of 1,039 hours as a total they may not exceed.
View the
exceptions in a table format.
You can work for an employer or in a position that is excluded from the 1,040 rule. By keeping under the 1040-hour
limit
or working under an exception to the rule, you will retain your status as a PERS retired member and may continue to
receive retirement benefits. You will not accrue any new benefits for employment while you retain your status as a
retired member.
Important: Legislation from 2009 provides that hours worked under an exception to the 1,040-hour
limitation are not
counted toward the limitation. For example, if you are working under an exception for Employer A and concurrently
working under the 1,040-hour limitation for Employer B, only the hours worked for Employer B are counted toward the
1,040-hour limitation. This change is retroactive. It applies to all hours worked under an exception on or after
January
1, 2004, or, if the exception was created after January 1, 2004, hours worked on or after the date the exception
became
effective, whichever is later. The effective date of an exception can be found on the table at the above link.
The exceptions
If you are reemployed as follows, the 1,040-hour limitation does not apply to that employment. You may work any
number
of hours in that position, and they will not be counted toward the 1,040-hour limitation.
Unless noted otherwise, these exceptions do not apply if you retired early, i.e.: if you are a Tier One general
service
member who retired before age 58 or a Tier Two general service member who retired before age 60 unless you qualified
for
retirement with 30 or more years of service, or if you are a Tier One or Tier Two police officer or firefighter
member
who retired before age 55 unless you qualified for retirement at ages 50 to 54 with 25 or more years of service.
Some exceptions have expiration dates.
-
As a teacher or administrator employed by a community college district or school district located in a county
with a
population of not more than 35,000 inhabitants. Members who took early retirement are eligible for this
exception
provided they are not employed in the position until at least six months after their effective retirement date.
-
As a teacher or administrator employed by an education service district (ESD), provided the primary duties of
the
retired employee are performed in a county with a population of not more than 35,000 inhabitants. Members who
took early
retirement are eligible for this exception provided they are not employed in the position until at least six
months
after their effective retirement date.
-
As a speech-language pathologist or speech-language pathologist assistant employed by a school district or ESD.
Members who took early retirement are eligible for this exception provided they are not employed in the position
until
at least six months after their effective retirement date.
-
By the sheriff of a county with a population of fewer than 75,000 inhabitants.
-
By the municipal police department of a city with less than 15,000 inhabitants.
-
By the state or a county for work in a correctional institution located in a county with less than 75,000
inhabitants.
-
By the Oregon State Police for work in a county with less than 75,000 inhabitants.
-
By the Black Butte Ranch Rural Fire Protection District, the Black Butte Ranch Service District or the Sunriver
Service District.
-
By any participating employer if the retired member is employed to temporarily replace an employee serving in
the
National Guard or in a reserve unit of the United States Armed Forces who is called to federal active duty.
-
By a road assessment district organized under Oregon Revised Statutes (ORS) 371.405.535.
-
Is on active state duty in the organized militia and has reached normal retirement age.
-
As director or as an assistant director of the Department of Human Services if the Governor approves the
exception for
the specific person in the position.
-
The retired member is a nurse and employed as a nurse or to teach nursing during a nursing workforce shortage
declared
by the Governor or Oregon Legislature.
-
The retired member is a registered nurse employed as a nursing instructor.
-
By the Oregon Legislature or the Oregon State Police for service during a legislative session.
-
As director or as an assistant director of the Oregon Health Authority if the Governor approves the exception
for the
specific person in the position.
-
By the Department of Public Safety Standards and Training to provide training under ORS 181.610-181.712.
-
As a teacher of career and technical education (licensed by the Teacher Standards and Practices Commission to
instruct
any career and technical education course or program in any career and technical education field). Members who
took
early retirement are eligible for this exception provided they are not employed in the position until at least
six
months after their effective retirement date.
-
By Harney County Health District as a licensed, registered, or certified health care provider.
-
As a private security professional or special campus security officer at institutions of higher education.
-
By the Office of State Fire Marshal for fire prevention, fire preparedness, fire risk mitigation, firefighting,
emergency response, or other response support functions.
Note: Population figures from the latest federal decennial census are used to determine the applicability of certain
exceptions to the 1040-hour limitation.
Tier One or Tier Two retirees who have reached full retirement age under Social Security may work an unlimited number of
hours. Remember that full retirement age under Social Security varies by birth date.
Tier One or Tier Two retirees who are receiving Social Security benefits and have not reached full retirement age under
Social Security may work either less than 1,040 hours in a calendar year or, if greater, the total number of hours, at
the retiree's hourly rate of pay, that would not exceed the annual earnings limit set by the Social Security
Administration.
The Social Security Administration (SSA) annually establishes the calendar year earnings limits for recipients of Social
Security benefits. Annual changes to earnings limits established by the SSA are not effective for Tier One or Tier Two
retirees until PERS amends its administrative rule that specifies the limits.
SSA updates a publication each year where you can check the current compensation limits on Social Security taxes,
benefits, and costs.
As a Tier One or Tier Two early retiree, your benefits will cease if:
-
You return to public employment and meet or exceed the 1,040-hour limitation.
OR
-
If applicable, you exceed the Social Security limits explained above, and your employment continues into the
month following the month in which you met or exceeded the limits.
Your retirement benefits, whether monthly payments or installment payments, will be stopped as of the first of the
calendar month following the date the limit was exceeded. Your retirement will be canceled, and you will return to
active membership.
If you were receiving a monthly benefit or have unpaid installment payments from a lump-sum option, your account
will be
rebuilt, adjusted for benefits received, and credited with any applicable interest while you are employed as an
active
member.
You will not have to repay any retirement benefits paid before your return to active membership unless you were
retired
for less than six calendar months before you reestablished active membership (even if the six-month period crosses
calendar years). If so, you will be required to repay all benefits received.
The questions below outline how PERS determines whether benefit repayment is required.
|
Question
|
Example and Answer 1
|
Example and Answer 2
|
|---|
|
Has the early retiree worked 1,040 hours or more in a calendar year?
| John Doe is a December 1, 2023, PERS retiree hired as a retiree on December 2, 2023. John works 216
hours for the remainder of 2023 and continues working for the full year of 2024. John does not equal
or exceed the Tier One/Tier Two 1,040 hours per calendar year work hour limit in either year. Answer: No, and no further action is necessary. | Jane Doe is a December 1, 2023, PERS retiree hired as a retiree December 2, 2023. Jane works 216
hours for the remainder of 2023 and continues working for the full year of 2024. Jane exceeds the
Tier One/Tier Two 1,040 hours per calendar year work-hour limit in 2024. Answer: Yes. Go to the next question. |
|
Did employment continue into the following month after the limitations were exceeded?
| Jane Doe exceeded the 1,040 work hour limit as of April 25, 2024. However, she terminates her retiree
employment, effective April 25, 2024. Her employment was terminated in the same month in which she
exceeded and, therefore, did not continue into the following month. Answer: No. Employment was terminated before the first of the following month. No
further action necessary. | Jim Doe is a December 1, 2023, PERS retiree hired as a retiree December 2, 2023. He exceeds the 1,040
work-hour limit as of April 25, 2024, and continues working into the month of May 2024. Answer: Yes. Employment continued into the following month. Go to the last question.
|
|
Is the time period between the date the retiree originally retired and the first day of the calendar
month following the date the retiree exceeded the 1,040 work-hour limit less than six months (even if
this period crosses calendar years)?
| Continuing from the facts presented in Example 2 of the second question above, the time period
between Jim's December 1, 2023, effective retirement date and the date he exceeds the 1,040
work-hour limit on May 1, 2024, is less than six months. Answer: Yes. Repayment of all benefits received after retirement required. | Modifying some of the facts presented in Q2, Example 2, if Jim had exceeded the 1,040 work-hour limit
June 25, 2024, and continued working into the month of July 2024, the time period between Jim's
effective retirement date of December 1, 2023, and July 1, 2024, is more than six months. Answer: No, and no repayment required. Active membership is reestablished July 1,
2024. |
If you exceed the limit: Once you meet or exceed the limitations in a calendar year, your retirement is canceled. You
cannot begin the new calendar year and expect to work under the limitation again. For example, a retiree who works 1,050
hours by the middle of December and continues employment into the next month becomes an active member again and benefits
will be stopped as of January 1. Your retirement benefits will not restart until you separate from covered employment
and reapply for retirement benefits. When you re-retire , your benefit will be calculated based on the Tier One or Tier
Two program laws, administrative rules, and factors in place at that time.
An "elected official" is defined as a person who is elected to a full-time, salaried office of the state or a
participating political subdivision of the state. An "appointed official" is defined as a person who is appointed to a
full-time, salaried office with a fixed term. Elected and appoint officials as defined do not include members of the
Oregon Legislature.
If you are a Tier One or Tier Two retiree who is an elected or appointed official, your employment is not subject to the
1,040-hour limitation. Instead, your retirement benefits cease once you take office and will not be paid for your entire
term of office. Once the term is over, you may re-apply for benefits. The benefits will be recomputed based on your age,
account balance, and other calculation factors in effect at the time you re-retire.
If you are an elected or appointed official who is a retired Tier One or Tier Two member, you may elect to become an
active a Tier One or Tier Two member by giving the PERS Board written notice within 30 days after taking office. This
election is irrevocable during the term of office for which the election is made. Even if you do not make this election,
your retirement benefits will still cease unless you qualify for the exception below.
There is one exception for retired Tier One or Tier Two members who did not retire under the early retirement provisions
of Oregon Revised Statutes (ORS) 238.280(1), (2), or (3). If you are elected or appointed as a sheriff, county judge, or
commissioner in a county with a population of less than 75,000, you may continue to receive retirement benefits during
your term of office as long as you do not elect to become an active member. The benefit will continue during and after
the term of office. If you did take an early retirement, you are not eligible for this exception and your benefit will
stop during your term of office.
After you retire, keep PERS informed of your correct mailing address. That way, you will continue to receive tax
reporting forms, retiree health insurance information, Perspectives newsletter, and other important information.
For your protection, address changes must be in a signed and dated letter, or you can use the
Information Change Requestform.
Send address changes to:
PERS
P.O. Box 23700
Tigard, OR 97281-3700