Reemployment after Retirement
Reemployment after retirement is common among retirees. Each MPERS’ plan has differing rules about what happens to your MPERS’ benefit if you return to work with the State of Missouri. Regardless of the plan you are in or the benefit-eligible status of the position, it is important to remember the following IRS requirements:
- There must be a 30-day separation between retirement and reemployment to be considered retired and
- Prior to retirement, there cannot be a predetermined arrangement to return to work.
If an MPERS’ retiree meets the above mentioned requirements and returns to work in a benefit-eligible position under MPERS or MOSERS, the retiree’s monthly retirement benefit will be temporarily suspended (see exception below for Closed Plan retirees). A benefit-eligible position is one that normally requires the performance of duties of at least 1,040 hours per year. The employer determines if the position is benefit or non-benefit eligible.
More information regarding the bona fide separation and reemployment after retirement requirement can be found on the Frequently Asked Questions page.
Closed Plan Retiree
Benefit-Eligible Position
If a Closed Plan retiree returns to work for MoDOT or MSHP in a benefit-eligible position:
- The monthly retirement benefit from MPERS is suspended for any month in which the retiree is actively employed.
- After one continuous year of employment, the retiree will earn service credit for any time worked after retirement.
When a retiree reenters retirement, the benefit will be equal to the monthly benefit the retiree received when the benefit was suspended plus an additional monthly benefit for the service earned during reemployment. The additional benefit will be paid in accordance with the annuity option originally elected.
If a Closed Plan retiree returns to work in a benefit-eligible position covered by the Missouri State Employees’ Retirement System (MOSERS):
- There is no suspension of the monthly retirement benefit.
- No additional MPERS service credit is earned.
Non-Benefit-Eligible Position
Closed Plan retirees may be employed in a non-benefit-eligible position with no suspension of their monthly retirement benefit. Retirees do not earn additional creditable service under MPERS while working in a non-benefit eligible position.
Retirees may be employed as an independent contractor by MoDOT or MSHP, or perform any other independent contractor work, with no suspension of the MPERS’ monthly retirement benefit.
Year 2000 Plan Retiree
Benefit-Eligible Position
If a Year 2000 Plan retiree returns to work in a benefit-eligible position covered by MPERS or MOSERS:
- The monthly retirement benefit from MPERS is suspended for any month in which the retiree is actively employed.
- After one continuous year of employment, the retiree will earn service credit for any time worked after retirement.
When a retiree reenters retirement, the benefit will be equal to the monthly benefit the retiree received when the benefit was suspended plus an additional monthly benefit for the service earned during reemployment. The additional benefit will be paid in accordance with the annuity option originally elected.
Non-Benefit Eligible Position
Year 2000 Plan retirees may be employed in a non-benefit-eligible position with no suspension of the monthly retirement benefit. Retirees do not earn additional creditable service in MPERS while working in a non-benefit-eligible position.