Thinking About Working After Retirement?
For members of the Teachers' Retirement System (TRS) Plan 1
Last Updated: August 2008
Print Version
This publication describes possible impacts to your retirement benefit if you return to work for an employer covered by the Washington State Teachers’ Retirement System. The Department of Retirement Systems (DRS) has prepared this brochure to help you find answers to many of the questions regarding returning to work after retirement.
When do I become a retiree?
It is important to understand when you become a retiree because you must first retire before you can be covered under the return to work laws. You become a retiree when you:
- Meet the age and service requirements for retirement;
- File an application for retirement with the Department of Retirement Systems (DRS);
- Terminate all employment with a DRS-covered employer(s); and
- Sever all agreements for future TRS-covered employment.
Taking these actions will establish your effective retirement date – the first day of the month following the month in which you meet the conditions for retirement.
What if I return to work after I retire?
Keep in mind that you must be separated from employment for at least 30 days after your effective retirement date (see "Returning to work less than 30 days after your effective retirement date") before you can return to work for a DRS-covered employer. Once you have been retired for at least 30 days, additional rules apply based on the date you retired, if you wish to return to work for a public education institution (K-12, community colleges, universities) and continue to receive your retirement benefit.
If you retired on or after July 22, 2007, and you plan to work more than 867 hours, and up to a maximum of 1,500 hours in a fiscal year (July 1 – June 30), without impacting your retirement benefit:
- You must be separated from employment for at least 45 days after your retirement date;
- You must not have a written or verbal agreement for re-employment with the same employer before your retirement;
- Any hours you work beyond 867 and up to 1,500 in a fiscal year count towards a 1,900 hour cumulative lifetime limit. Once you reach the 1,900 hour cumulative lifetime limit you may not work beyond 867 hours in a fiscal year while still receiving your retirement benefit; and
- Your employer must have a written policy that documents both their hiring process and a justifiable need for hiring a retiree for you to work more than 867 hours in a fiscal year while still receiving your retirement benefit.
If you retired prior to July 22, 2007, and you plan to work more than 867 hours, and up to a maximum of 1,500 hours in a fiscal year (July 1 – June 30), without impacting your retirement benefit:
- You must be separated from employment for at least 30 days after your retirement date; and
- Any hours you work beyond 867 and up to 1,500 in a fiscal year count towards a 1,900 hour cumulative lifetime limit. Once you reach the 1,900 hour cumulative lifetime limit you may not work beyond 867 hours in a fiscal year while still receiving your retirement benefit.
Note: You may continue to work once you have exceeded any of the hourly limits listed above that apply to your retirement date. However, if you do so, your retirement benefit will stop. It will resume following your last day of employment or at the beginning of the next fiscal year (July 1 – June 30), whichever comes first.
What do I need to do if I return to work after retirement?
When you return to work, you must let your new employer know that you are a retiree from TRS. It is your employer's responsibility to report any return to work hours to DRS.
Returning to work 30 days after your effective retirement date
If you retired on or after July 22, 2007, you will continue to receive your retirement benefit if you separate from service for at least 30 days after you retire, and you work 867 hours or less in a fiscal year for a public educational facility.
If you retired before July 22, 2007, and you were separated from service for at least 30 days before you returned to work, you may work up to 1,500 hours in a fiscal year for a public educational facility if you have not reached the 1,900 hour cumulative lifetime limit.
Returning to work 45 days after your effective retirement date
If you retired on or after July 22, 2007, and you separate from service for at least 45 days after retirement, you may work up to 1,500 hours in a fiscal year and still receive your retirement benefit provided your employer has met the hiring requirements and you have not reached the 1,900 hour cumulative lifetime limit.
Returning to work less than 30 days after your effective retirement date
If you return to work for a TRS-covered employer less than 30 days after your effective retirement date, your benefit will be reduced by 5.5 percent for every seven hours worked in a month up to a maximum of 140 hours. If the reduction is more than your benefit, the excess is taken from the next month's benefit payment. The reduction continues until you stop working for a full 30 days.
Note: If you terminate employment and apply for retirement, but return to work for a TRS-covered employer before your effective retirement date, your retirement is nullified, you return to active membership, resume paying contributions and return all retiree benefit payments to DRS.
What hours count toward the 1,900 hour cumulative lifetime limit?
Any hours you work beyond 867 and up to 1,500 in a fiscal year count toward the cumulative lifetime limit of 1,900 hours. Once you reach the 1,900 hour lifetime limit, you may work only 867 hours per fiscal year and still receive your retirement benefit.
How will I know when I reach the hourly limits?
DRS will notify you in writing when you near your hourly limit for a fiscal year, and when you near your 1,900 hour cumulative lifetime limit. When you exceed your hourly limit, DRS will notify your employer. You may also track the number of hours you have worked within Online Account Access.
Note: Your retirement benefit will stop once you exceed your hourly limit. It will resume following your last day of employment or at the beginning of the next fiscal year, whichever comes first.
Is my benefit affected if I return to work for a state agency?
No. Once you have been retired for at least 30 days, you are eligible to work for a state agency with no retire/rehire limitations.
What if I work as an independent contractor or in a public education position in another state?
Employment outside the state of Washington, or as an independent contractor, is not affected by retire/rehire rules.
What if I return to work for multiple employers (i.e. as a substitute teacher or under a part-time contract)?
If you retired on or after July 22, 2007, and you return to work for multiple employers, and you wish to work more than 867 hours in a fiscal year, each of your employers must have a written policy and demonstrate a justifiable need to rehire you.
If you retired before July 22, 2007, you may work up to 1,500 hours per fiscal year without your employer(s) having a written policy or documenting a justifiable need to rehire you. But any hours you work beyond 867, up to 1,500 hours, in a fiscal year count toward your 1,900 hour cumulative lifetime limit.
Contract work with a Washington State educational institution
As a retiree, your employment status and rights differ from those of an active, tenured teacher. The duration of a return to work contract is limited to one year; however, a contract may be renewed each year at the discretion of your employer.
For more detailed information, contact the Office of the Superintendent of Public Instruction (SPI) at (360) 725-6000.
Can I return to active membership?
You are not required to return to TRS membership, but you may elect to do so if you are a TRS Plan 1 retiree and you are employed in a full-time TRS-covered position for a public school.
Your return to active TRS membership may impact your future retirement benefit. You must contact DRS for a benefit estimate before returning to membership.
If you retired with less than 15 years of service credit, you may become a contributing member of the Public Employees', School Employees', or the Law Enforcement Officers'; and Fire Fighters' retirement systems. However, your TRS benefit may be suspended pending termination of your employment.
What if I am receiving a disability retirement?
If you retired because of a disability, your right to receive a benefit is subject to the same conditions as service retirees. However, DRS may require a disability retiree to have a medical examination at any time. If a medical examination shows that you have recovered from your disability, your disability retirement benefits will stop and you will be restored to TRS membership.
If I return to work, can I contribute to a deferred compensation plan?
Yes. Contributing to a deferred compensation plan has no impact on your retirement benefit. Only the hours that you work affect your monthly retirement benefit. If you have questions, contact the Deferred Compensation Program at 1-888-327-5596. For TDD, call 1-877-847-6041.
Does returning to work affect my health care plan?
Your health care coverage may be impacted if you return to work. For more information, contact the Health Care Authority (HCA) at 1-800-200-1004.
To learn more
For answers to your re-employment questions, contact DRS. When contacting DRS in writing, please include the following information:
- System and Plan
- Social Security number
- Your mailing address
- Daytime telephone number
The rules that govern working after retirement are contained in state retirement law. This publication is a summary, written in non-legal terms. It is not a complete description of the law. If there are conflicts between what is written in this publication, and what is contained in the law, the applicable law will govern.