For employer reporters and human resources professionals
Tips for hiring a PERS retiree
A PERS member can retire* and return to work for a PERS-participating employer while continuing to collect their PERS benefits. This can be a win-win for the employer and the retiree — as long as both are clear on the restrictions.
When can I hire them?
Before you can hire a retiree (i.e., by using status code 11 or 12), the following steps must be completed: the retiree has submitted all their retirement forms to PERS, their employer has terminated them, and all their final hours and wages have successfully posted.
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NOTE ABOUT RETIREMENT PROCESSING
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It can take up to about 90 days for a retirement to process through the PERS system. During this time, you can submit a retiree new-hire record and release retiree wage records, but they will suspend and remain suspended until the retirement fully processes. Once the retirement process is complete, you will need to resave the suspended records so they can successfully post.
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What status code should I use?
Most of the time, report your retiree new hire to PERS by submitting a Detail 1 record with status code 11 – Retiree New Hire with Hr Limit. Even though the retiree may not have an hour limit, the restrictions that were relaxed by Senate Bill (SB) 1049 are temporary (until 2034), so employers should continue to use status code 11 — unless their employee meets one of these uncommon qualifications:
- They qualify for a pre–SB 1049 exception. If they do, use status code 12 - Retiree New Hire without Hour Limit.
- They are canceling their retirement and returning to active service. In this case, use status code 13 - New Hire - Retiree Return to Service (see note below).
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NOTES ABOUT USING STATUS CODE 13
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Before using status code 13, ensure that the retiree definitely intends to come out of retirement and stop receiving retirement benefits. When they are finished working, they will have to apply for retirement again.
After submitting the Detail 1 record with status code 13, which cancels their retirement, submit another Detail 1 record in a separate report with status code 01 - Qualifying New Hire to hire them. Both records should have the same date in the Status Date field, which is the employee’s first day working for you.
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Who can work unlimited hours?
- PERS members who retired at normal retirement age (as opposed to early retirement age).
- PERS members who retired at early retirement age and took a complete six-month break from working for any PERS-participating employers.
- Retirees who qualify for a pre–SB 1049 exception.
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Normal and early retirement ages for each PERS plan and job classification are listed on the Benefit Component Comparisons webpage.
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To help retirees understand if they can work unlimited hours or not, direct them to the appropriate decision chart:
Who has to work limited hours?
- PERS members who retired at early retirement age and did not take a complete six-month break from all PERS-covered employment.
These retirees are limited to working 1,039 hours/year (members of Tier One/Tier Two) or 599 hours/year (members of Oregon Public Service Retirement Plan (OPSRP)). If they surpass that limit, their retirement is canceled, and they are returned to active service.
- Tier One/Tier Two disability retirees who have reached normal retirement age.
See below.
What about hiring disability retirees?
A Tier One/Tier Two disability retiree who reaches normal retirement age can work for a PERS employer as a retiree, but they are limited to working 599 hours in a calendar year. Learn more on the Disability Retirement Work Income Guidelines webpage, section “Return-to-Work Program for a PERS-Covered Employer.”
If they have not reached normal retirement age, a disability retiree must follow a certain process to return to work, as explained in employer reporting guide 14, Disability Benefits, section “Tier One/Tier Two Disability Retirement,” subsection “Returning to Work.”
An OPSRP member who is receiving disability benefits cannot work at all or their disability benefits will be discontinued. Once an OPSRP member is not receiving disability benefits and either retires at early retirement age or normal retirement age, they can work for a PERS-participating employer as a retiree with no disability-related restrictions. Any restrictions that would apply to an OPSRP member with an early or normal service retirement would apply.
Learn more about work-after-retirement restrictions that apply to early retirees on the employer Work After Retirement webpage.
What about retirees on Social Security?
Some PERS retirees who are receiving Social Security benefits and have not reached full retirement age under Social Security may have limitations on how much they can earn and still receive full benefits. For more information, go to the Social Security Administration's Receiving Benefits While Working webpage and the PERS employers Work After Retirement webpage.
*This applies to PERS members who took a service retirement, which means they were eligible for retirement based on age or years of service. Those who retire early may be limited in the hours/calendar year they are allowed to work for a PERS-participating employer after retirement. Those who receive disability retirement or disability benefits have other restrictions, explained in employer reporting guide 14, Disability Benefits.
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