Eligibility Determination Worksheet

PERS/TRS Plan 1 Retirees Returning to Work

DRS Notice E07-012: SHB 1262, regarding PERS/TRS Plan 1 retirees, passed in 2007.

This law allows TRS Plan 1 members who retired before July 22, 2007, to work up to 1,500 hours per fiscal year (July 1 - June 30) without affecting their benefit -- provided the retiree waited at least 30 calendar days from their retirement effective date before returning to work.

This law changes the maximum limit on the number of hours a TRS Plan 1 retiree can work without having their pension benefits suspended -- provided the retiree waited 45 calendar days after their effective retirement date. The retirees are subject to a 1,900 hour lifetime limit. Hours worked above 867 to 1,500 within the fiscal year count against the 1,900 hour lifetime limit. Once they reach their lifetime limit, the retiree's benefit will be suspended for work beyond 867 hours.

This law set new criteria that employers must meet before hiring PERS Plan 1 and TRS Plan 1 retirees.

Employers must:

• have a written policy relating to hiring of retirees;
• document the need to hire a retiree, the process used and the decisions made during the process, retain documentation and make it available to DRS in the event of an audit; and
• hire retirees through an established process with the highest decision making authority approval.