Tag Archives: returning to work

When Retirees Rejoin NYSLRS

The COVID-19 pandemic has prompted some NYSLRS retirees to return to work in the public sector. If you are one of these retirees, we want to make sure you know that the post-retirement earnings limit of $35,000 a year for retirees in a public sector job who are under age 65 has been suspended through much of 2020, 2021 and 2022 by executive order. Additionally, if you work for a school district or BOCES, legislation has suspended your earnings limit through June 30, 2023. Read more in our blog post, Update Regarding Retiree Earnings Limit During COVID-19 Emergency.

rejoin NYSLRS

Some retirees have considered ending their retirement to rejoin NYSLRS. While rejoining the Retirement System is an option, you should understand how this decision could affect your pension benefits.

Rejoining NYSLRS may increase your total service credit, allowing you to reach certain milestones that would increase your pension. An increase in earnings could also result in a higher pension. However, depending how long you work after rejoining, your new pension may not be higher than your original amount.

Note: This post applies to service retirees of the Employees’ Retirement System (ERS) or the Police and Fire Retirement System (PFRS) who are rejoining the same system. Different rules may apply to retirees of other retirement systems, retirees joining a system other than the one they retired from, and disability retirees.

What Happens to Your Pension When You Rejoin NYSLRS?

If you rejoin NYSLRS, your pension will be suspended. If you are in Tiers 2 through 6, and you earn less than two years of new service credit after you rejoin, your original pension would be reinstated when you retire the second time. Any new service credit and earnings would not affect your pension. (Tier 1 members would receive an additional benefit even if they earn less than two years of service in their new membership.)

If you earn two or more years of new service, you can either receive your original pension or you can receive a recalculated benefit that includes your additional service. If you choose the recalculated benefit, you would have to repay the entire pension amount you have already received, plus interest. (The pension amount you repay would be based on the Single Life Allowance rate.) You may repay that amount in a lump sum or by installments before you retire again — or request a permanent reduction to your new pension.

Other Factors

Here are other things to consider before you rejoin NYSLRS:

  • When you retire again, your new retirement date can delay your eligibility for cost-of-living adjustments (COLAs).
  • If you are in Tier 1 or 2, rejoining may affect your death benefit.

Where to Go for Help

If you are seriously considering rejoining NYSLRS, we strongly recommend you speak with a customer service representative to discuss how rejoining would affect your benefits. You can call them at 1-866-805-0990 or email them using our secure contact form.

You may also wish to read our publication Life Changes: What If I Work After Retirement?

Update Regarding Retiree Earnings Limit During COVID-19 Emergency

Normally, most NYSLRS retirees who return to work for a public employer face an earnings limit. Under Section 212 of the Retirement and Social Security Law, most NYSLRS retirees under age 65 who return to work for a public employer can earn up to $35,000 per calendar year without penalty. The limit includes all earnings for the calendar year, including money or retroactive payments earned in the calendar year but paid in a different calendar year. If a retiree exceeds the earnings limit and continues to work, their pension benefits are suspended for the remainder of the year.

However, executive orders and new legislation have temporarily suspended the earnings limit for retirees who returned to work during the COVID-19 emergency.

retiree earnings limit

Earnings Limit Suspended through June 30, 2023 for School Districts and BOCES

The state budget for fiscal year 2022-2023 included legislation that temporarily suspends the earnings limit for retirees employed by school districts and Boards of Cooperative Educational Services (BOCES). Under this legislation, post-retirement earnings with a school district or BOCES will not count toward a retiree’s annual earnings limit through June 30, 2023.

The new law means that for retirees working for school districts or BOCES, the limit is eliminated through the end of the school year 2022-23. This extension does not apply to universities, colleges or charter schools.

Earnings Limit Suspended through August 28, 2022 for Other Public Employers

Since the start of the COVID-19 emergency, governors have issued executive orders temporarily suspending the retiree earnings limit. Under the executive orders, post-retirement earnings with a public employer will not count toward a retiree’s annual earnings limit during the following time periods:

  • January 1, 2022 through August 28, 2022.
  • January 1, 2021 through June 24, 2021, and September 27, 2021 through December 31, 2021.
  • March 27, 2020 through December 31, 2020.

If the order is extended beyond August 28, 2022 we will update this blog post. For general information about post-retirement employment, please read What If I Work After Retirement.