A retiree may work under a personal service contract as an independent contractor without being required to become a member of a retirement system. Retirement benefits are not affected by such employment.
Note: A retiree who has used the 2008 early retirement factors to retire early, cannot work as a contractor before age 65 and continue to receive a retirement benefit for any month in which they work. The benefit will stop the first of the month they return to work and will restart the month following the day they stop working. After age 65, work as a contractor will not affect the benefit.
To qualify as an independent contractor, a retiree must establish a valid contractual relationship with you. DRS follows the same criteria as the Internal Revenue Service for defining what constitutes a valid contractual relationship. Employers should review WAC 415-02-110 or contact their own legal counsel for assistance in determining whether a reemployed retiree's status is that of an employee or an independent contractor.