After you retire under the FRS, you can work for any private employer, for any public employer not participating in the FRS, or for any employer in another state, without affecting your FRS benefits. The provisions of the reemployment law vary, depending on whether your date of retirement or DROP termination is before or after July 1, 2010.
Applicable Publications/Quick Clips:
If you are reemployed in any capacity (FRS-covered or non-covered) in your first year (12 months) of retirement by an employer participating in the FRS, the following limitations and exceptions apply:
FRS Pension Plan | FRS Investment Plan |
You are considered retired when you completed your retirement application and terminated employment with all FRS participating employers. If you participate in DROP, your retirement is completed when your terminate employment. Effective Date of Retirement or DROP Termination Prior to July 1, 2010
If you have questions about termination or reemployment after retirement call the Division of Retirement toll free at 888-738-2252 or at 850-488-6491, or email the Division of Retirement at [email protected]. Exceptions to the Reemployment Law After being retired for 1 calendar month, you may be reemployed in certain positions during the 2nd through 12th months after retirement or after DROP termination. The excepted positions are:
Any reemployed retiree whose position is not eligible for an exception listed above or who exceeds his or her 780-hour limitation should notify the Division of Retirement by telephone at 850-488-6491 or toll free at 888-738-2252, or by email at [email protected]. After 1 Year Renewed Membership Effective Date of Retirement or DROP Termination On or After July 1, 2010 The termination requirement is 6 calendar months following the effective date of retirement or DROP termination. If you are reemployed by an FRS participating employer within this 6 calendar month period after retirement or DROP termination, your retirement will be voided. You will be required to repay any benefits you received; your FRS membership will then be reinstated. You may not return to employment with an FRS-covered employer until you have been retired for 6 calendar months. If you've been retired for 6 calendar months, and you return to employment with an FRS-covered employer during the next 6 months after retirement, you must suspend further Pension Plan benefits for every month you are employed during this period. You and your employer will be required to repay any benefits you received when benefits should have been suspended. There are no reemployment exceptions. After 1 Year Renewed Membership |
You are considered retired once you terminate FRS-covered employment and request a distribution (including a rollover) from your FRS Investment Plan account. A distribution may not be issued until you have been terminated for 3 calendar months (except that if you have met the normal retirement requirements of the Investment Plan you may receive a one-time distribution of up to 10% of your account balance after 1 calendar month). So, if you are reemployed with an FRS employer prior to receiving a distribution of your benefits, you will not be considered to have terminated. You may not be reemployed with an FRS-participating employer for the first 12 calendar months after a distribution without suspending your retirement benefits, except under limited circumstances as described below. Suspension of benefits, in this case, refers to your inability to take additional distributions from your Investment Plan account balance until certain requirements have been met. If you are reemployed by an FRS participating employer within the 6 calendar month period after retirement, your retirement will be voided. You and your employer will be required to repay any benefits you received; your FRS membership will then be reinstated. An alternative to repaying these benefits is to terminate employment for an additional period to satisfy the 6 month termination requirement. The provisions of the reemployment vary, depending on whether you retired before or after July 1, 2010 as follows: Retirement Prior to July 1, 2010 Returning to Work in a Non-Excepted Position After 1 Year Renewed Membership Exceptions to the Reemployment Law (apply only if retired prior to July 1, 2010)
Positions not listed above are considered non-excepted positions. Any affected reemployed retiree who is not eligible for an exception or who exceeds his or her 780-hour limitation should notify the Investment Plan Administrator at 1-866-446-9377, Option 4. Retirement On or After July 1, 2010 You may not return to employment with an FRS-covered employer until you have been retired for 6 calendar months (i.e., 6 calendar months following the month in which a distribution was taken). If you've been retired for 6 calendar months, and you return to employment with an FRS-covered employer during the 7 - 12 calendar months after retirement, no additional Investment Plan distributions are permitted until you either terminate employment or complete a total of 12 calendar months of retirement. There are no reemployment exceptions in this instance. After 1 Year Renewed Membership |