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Edit by LM - 4/20/22 Apprvd by DB 4/20/22


Retiree Return-to-Work
& Bona Fide Separation


Re-employment policies, requirements, restrictions, and information for participating retirees.

What follows are the basic provisions for working after PERS retirement with private employers, out-of-state employers and employers who participate in the Alaska PERS. This text also explains the reemployment restrictions for members who retired under a Retirement Incentive Program (RIP). For specific information regarding your individual retirement, please contact the Alaska Division of Retirement and Benefits.

After you retire in the PERS, you may work for a private company, in state or out of state, without limitations. You may work for an out of state or federal government employer without limitations.

If you retired under the standard provisions for the PERS (excluding Retirement Incentive Program (RIP) retirees), you may reemploy and become a member of the Teachers’ Retirement System (TRS), Judicial Retirement System (JRS) or National Guard and Naval Militia Retirement System (NGNMRS) without limitations, assuming you have had a bona fide separation (see bona fide separation policy outlined below).

You may work in a temporary, nonpermanent position, or on a personal services contract with an Alaska PERS participating employer without affecting your retirement benefits assuming you have had a bona fide separation, see bona fide separation policy outlined below.

Returning to work with an Alaska PERS employer

Normal retirement is defined as retiring with either age or service eligibility for an unreduced retirement benefit. After vesting, normal PERS retirement age is 55 for Tier I, 60 for Tiers II/III, and any age for "all others" with 30 years of service or police/firefighters with 20 years of service. (Normal retirement does not include RIP retirees.)

  1. Returning to work with a PERS employer in a permanent full-time or part-time position after normal retirement.
    • Alaska Statute 39.35.150 prohibits a member from working in a PERS covered position while receiving PERS retirement benefits.
    • If you go back to work in a PERS position, your retirement benefit will be suspended until you terminate employment. PERS contributions will be deducted from your paycheck and you will accrue PERS service. You are required to pay back any retirement benefits you receive while simultaneously earning PERS credit. This amount must be paid in full before you retire again.
    • For most members, when you retire again, your first retirement benefit will be restarted once we receive notification that you have terminated employment. You must apply for the additional retirement benefit earned during reemployment. The additional benefit will be calculated using your back-to-work employment segment and salaries.
    • For those first hired prior to July 1, 1977, a second option is also available; your retirement benefit can be recalculated combining your original service and back-to-work service. This combined service is then multiplied by the average monthly salary, based on your high three consecutive salaries and a 2% benefit multiplier. Upon your subsequent retirement, you may elect the calculation you prefer.
  2. Returning to work with a PERS employer in a permanent full-time or part-time position after early retirement.
    • Early retirement is defined as retiring prior to normal age eligibility with a reduced retirement benefit. After vesting, early retirement age is 50-54 for Tier I and 55-59 for Tiers II/III.
    • If you go back to work in a PERS position, your retirement benefit will be suspended until you terminate employment. PERS contributions will be deducted from your paycheck and you will accrue PERS service.
    • When you retire again, if you were first hired prior to July 1, 1977, you may have your benefit calculated in one of two ways. Your first and second retirement benefits can be calculated together, as if you had not retired early, with an actuarial reduction based on what you received on early retirement. Or, you may choose to have your previous retirement reinstated. A second retirement benefit will then be calculated using your back-to-work employment segment and salaries. This benefit will have an actuarial increase based on the duration of your reemployment and the difference between your early retirement compared to a normal retirement benefit.
    • If you were first hired after July 1, 1977, you will receive your original retirement benefit and a second benefit based on your back-to-work employment segment and salaries.
  3. Returning to work after taking a Level Income Option (LIO) at retirement.
    • Under the Level Income Option, you receive a larger PERS retirement benefit before age 65 and a smaller benefit after age 65.
    • When you return to work, your LIO retirement will be recalculated and adjusted for the pre-65 and post-65 benefits when you terminate employment. Please contact the Division of Retirement Benefits for further information on the effects of reemployment with this option.
  • Health insurance plans

    If you receive major medical (either paid by the State of Alaska or yourself) and/or dental-vision-audio coverage under the AlaskaCare Retiree Health Plan, it will end on the last day of the month in which you become reemployed in the PERS. However, if you are reemployed on the first day of a month, your coverage will end on the last day of the previous month.

    If you have health insurance under your employer, you may need to verify when it goes into effect. If there is a waiting period before your active coverage begins, you may want to purchase retiree COBRA coverage. The division will provide you with the form and information when we are notified of your return to work.

    • Dental-Vision-Audio (DVA) insurance plan
      If you selected the optional DVA insurance plan at retirement, you may continue this coverage once you retire again.
    • Long-Term Care (LTC) insurance plan
      If you or you and your spouse are participating in the LTC program, you must pay the premiums during your period of reemployment in order to continue coverage. If you do not pay the premiums, you will not be eligible for LTC when you retire again. The division will provide you with the form and information when we are notified of your return to work in a PERS-eligible position.

RIP reemployment

If you retired under the Retirement Incentive Program (RIP), and return to work in a position that is covered by the Teachers’ Retirement System, the Public Employees’ Retirement System or (for those who retired under the 1996-2000 RIP) the Judicial Retirement System or the University of Alaska’s Optional Retirement Program, you will:

  1. Forfeit the three years of incentive credit that you received; and
    1. For the 1986 and 1989 RIPS, owe the PERS 110% of the benefits that you received as a result of the program, including any costs for health insurance.
    2. For the 1996-2000 PERS classified school district staff, owe the PERS 110% of the benefits that you received as a result of the program, including any costs for health insurance.
    3. For the 1996-2000 PERS (non-school district staff), owe the PERS 150% of the benefits that you received as a result of the program, including any costs for health insurance.

An indebtedness will be established for what you owe and will be reduced by the amount that you paid to participate in the RIP.

Interest (currently 7%) will accrue on your indebtedness from the date that you become reemployed until the indebtedness is either completely paid or you retire again. Any balance remaining when you retire again will result in an actuarial reduction to your future retirement benefits.

If you retired under the 1996-2000 PERS RIP, you have the following additional restrictions: you are prohibited from entering into personal services contracts with the University of Alaska or a state of Alaska agency or returning to State employment in a temporary or nonpermanent capacity for five years after you retire (State of Alaska and Municipal PERS) or three years after you retire (school district PERS).

Exceptions for RIP Retirees who want to go back to work

The following exceptions are very specific and narrowly defined:

  1. Personal services contracts may be allowed by the University Board of Regents for the University and the Commissioner of Administration for the State when there is a compelling reason to retain an employee who has specialized or extensive experience that relates to a particular program or project.
  2. Personal services contracts with the legislature are allowed during legislative sessions for hourly individuals who are not eligible for retirement, health, or leave benefits.
  3. Personal services contracts with the University of Alaska may be allowed for individuals who are employed only to teach or perform research duties.
  4. Personal services contracts during the three- or five-year restriction with a State agency or the University of Alaska if it is determined that there is a compelling reason to do so because of an individual’s specialized or extensive experience that relates to a particular program or project.

Need more information?

Please contact the Pension Adjustment Unit, Division of Retirement and Benefits by telephone at (907) 465-4460 or email .

What follows are the basic provisions for working after TRS retirement with private employers, out of state employers and employers who participate in the Alaska TRS. It also explains the reemployment restrictions for members who retired under a Retirement Incentive Program (RIP). For specific information regarding your individual retirement, please contact the Alaska Division of Retirement and Benefits.

After you retire in the TRS, you may work for a private company, in state or out of state, without limitations. You may work for an out of state or federal government employer without limitations.

If you retired under the standard provisions for the TRS (excluding Retirement Incentive Program (RIP) retirees), you may reemploy and become a member of the Public Employees’ Retirement System (PERS), Judicial Retirement System (JRS) or National Guard and Naval Militia Retirement System (NGNMRS) without limitations, assuming you have had a bona fide termination of employment (see bona fide termination policy outlined below).

You may work in a temporary, nonpermanent position, or on a personal services contract with an Alaska TRS participating employer without affecting your retirement benefits, assuming you have had a bona fide termination of employment (see bona fide termination policy outlined below).

Returning to work with an Alaska TRS employer

Normal retirement is defined as retiring with either age or service eligibility for an unreduced retirement benefit. After vesting, normal TRS retirement age is 55 for Tier I, 60 for Tier II, and any age for all tiers with 20 years of service. (Normal retirement does not include RIP retirees.)

  1. Returning to work with a TRS employer in a permanent full-time or part-time position after Normal Retirement.
    • Alaska Statute 14.25.043 prohibits a member from working in a TRS covered position while receiving TRS retirement benefits.
    • If you go back to work in a TRS position, your retirement benefit will be suspended until you terminate employment. TRS contributions will be deducted from your paycheck and you will accrue TRS service. You are required to pay back any retirement benefits you receive while simultaneously earning TRS credit. This amount must be paid in full before you retire again.
    • If you receive a contract for 172 days or more which entitles you to receive a full year of TRS service credit, the reemployment date is July 1, the beginning of the school year. Retirement benefits will stop effective June 30. You are not eligible for retirement benefits from July 1 to June 30 of the school year in which you become reemployed.
    • If you work less than 172 days, the reemployment date will be the actual hire date and you will accrue a partial year service credit. Retirement benefits will stop as of the date of reemployment.
    • For most members, when you retire again, your first retirement benefit will be restarted once we receive notification that you have terminated employment. You must apply for the additional retirement benefit earned during reemployment. The additional benefit will be calculated using your back-to-work employment segment and salaries.
    • Members are required to pay back any retirement benefits they receive while simultaneously earning TRS credit. This amount must be paid in full before you retire again.
  2. Returning to work with a TRS employer in a permanent full-time or part-time position after Early Retirement.
    • Early retirement is defined as retiring prior to normal age eligibility with a reduced retirement benefit. After vesting, early retirement age is 50-54 for Tier I and 55-59 for Tier II.
    • If you go back to work in a TRS position, your retirement benefit will be suspended until you terminate employment. TRS contributions will be deducted from your paycheck and you will accrue TRS service.
    • The period of reemployment is determined by whether or not your contract is for 172 days or more (see additional information under #1).
    • When you retire again, you will receive your original retirement benefit and a second retirement benefit that is based on your back-to-work employment segment and salaries.

  • Health insurance plans

    If you receive major medical (either paid by the State of Alaska or yourself) and/or dental-vision-audio coverage under the AlaskaCare Retiree Health Plan, it will end on the last day of the month in which you become reemployed in the TRS. However, if you are reemployed on the first day of a month, your coverage will end on the last day of the previous month.

    If you have health insurance under your employer, you may need to verify when it goes into effect. If there is a waiting period before your active coverage begins, you may want to purchase retiree COBRA coverage. The division will provide you with the form and information when we are notified of your return to work.

    • Dental-Vision-Audio (DVA) insurance plan
      If you selected the optional DVA insurance plan at retirement, you may continue this coverage once you retire again.
    • Long-Term Care (LTC) insurance plan
      If you or you and your spouse are participating in the LTC program, you must pay the premiums during your period of reemployment in order to continue coverage. If you do not pay the premiums, you will not be eligible for LTC when you retire again. The division will provide you with the form and information when we are notified of your return to work in a TRS-eligible position.

RIP Reemployment

If you retired under the Retirement Incentive Program (RIP), and return to work in a position that is covered by the Teachers’ Retirement System, the Public Employees’ Retirement System or (for those who retired under the 1996-2000 RIP) the Judicial Retirement System or the University of Alaska’s Optional Retirement Program, you will:

  1. forfeit the three years of incentive credit that you received; and
  2. owe the TRS 110% of the benefits that you received as a result of the program, including any costs for health insurance.

An indebtedness will be established for what you owe and will be reduced by the amount that you paid to participate in the RIP.

Interest (currently 7%) will accrue on your indebtedness from the date that you become reemployed until the indebtedness is either completely paid or you retire again. Any balance remaining when you retire again will result in an actuarial reduction to your future retirement benefits.

If you retired under the 1996-2000 TRS RIP, you have the following additional restrictions: you are prohibited from entering into personal services contracts with the University of Alaska or a state of Alaska agency or returning to State employment in a temporary or nonpermanent capacity for three years after you retire.

Exceptions for RIP Retirees who want to go back to work

The following exceptions are very specific and narrowly defined:

  1. Personal services contracts may be allowed by the University Board of Regents for the University and the Commissioner of Administration for the State when there is a compelling reason to retain an employee who has specialized or extensive experience that relates to a particular program or project.
  2. Personal services contracts with the legislature are allowed during legislative sessions for hourly individuals who are not eligible for retirement, health, or leave benefits.
  3. Personal services contracts with the University of Alaska may be allowed for individuals who are employed only to teach or perform research duties.
  4. Personal services contracts during the three- or five-year restriction with a State agency or the University of Alaska if it is determined that there is a compelling reason to do so because of an individual’s specialized or extensive experience that relates to a particular program or project.

Need more information?

Please contact the Pension Adjustment Unit, Division of Retirement and Benefits by telephone at (907) 465-4460 or email .

The PERS and TRS plans require benefits to be stopped during re-employment in a position that participates in the same retirement system (Alaska Statute 39.35.152 ; AS 14.25.043 ). Now, federal law similarly restricts re-employment into positions which are not covered by the retirement systems, such as temporary, nonpermanent positions or independent contractors if the positions are with the same employer from which the person retired. This policy was adopted to protect the retirement systems and members by placing restrictions of retiree re-employment with the same employer into non-covered positions.

Federal Treasury Regulations require employers and employees to be able to prove the returning retiree actually terminated employment by showing there was no pre-arrangement to return to work prior to the employee’s retirement and by showing a period of separation from employment.

In 2016, the IRS and treasury Department released proposed regulations for different requirements for the governmental plans which allow for in-service distributions before retirement and governmental plan sponsors may rely on them until the issuance of final regulations.

Failure to follow the qualification requirements under U.S. Code Section 401(a)(36) and the proposed normal retirement age regulations regarding in-service distributions raises potential qualification issues for a plan and early distribution tax penalties for the individual.

Importantly for purposes of this Policy, the pension and annuity plans administered by this Division (PERS, TRS and JRS) are qualified, governmental plans. Maintaining the qualified status of each plan is the top priority of the Division and it is of paramount importance to each plan and all their respective members, retirees, and beneficiaries.

Accordingly, the Division must take all steps necessary to preserve the qualified status of the plans.

The PERS, TRS and JRS do not allow in-service distributions of tax qualified funds (AS 14.25.220(37) TRS, AS 22.25.010 JRS and AS 39.35.370 PERS). The Division has conferred with its outside tax counsel, ICE Miller LLP, and confirmed that in order to avoid potential early distribution tax penalties for our members and to avoid a risk of disqualification of our plans, retirees must clearly demonstrate a valid severance from employment with their participating employer so that the retiree does not receive an in-service distribution in violation of the terms of the plans (the IRS refers to the valid severance from employment with the employer as a “bona fide separation from service”). To have a bona fide separation from service, a member cannot retire from service with his/her employer, but also have a prearranged agreement to be rehired by the same employer.

The Division requires the member to certify at retirement that there is no pre-arrangement to return to work with the same employer by confirming that on the retirement application form. The Division does not have to collect evidence to prove compliance or noncompliance, but it does need to have a policy regarding reemployment in compliance with federal law requirements for a qualified, governmental pension plan.

For retirees who are under age 62, there must be a separation employment of 6 months or more before rehire with the same employer in any capacity. For retirees who are age 62 or older there must be a separation of 60 days before rehire with the same employer in any capacity.

The Division has implemented the certification of no pre-arrangement for employment by adding a check box to the retirement applications for retirees to indicate whether there is a pre-arrangement for reemployment with the same employer.

  1. Indication of Pre-arrangement on Application for Retirement

    Retirees who are under age 62, who indicate there is a pre-arrangement, will be contacted and their retirement application will be suspended until the Division receives documentation from the employer that there is a 6-month separation.

  2. Re-employment Within Less Than 6 Months

    Retired members under age 59 ½ who return to employment with the same employer with less than a 6-month break will have their 1099-R changed to an early distribution without a known exception). The member may then have to establish with the IRS that a bona fide separation from service occurred at the time of the member’s retirement for the member to avoid an early distribution tax penalty.

  3. Re-Employment Within Less Than 6 Months, Evidence of Pre-arrangement

    If the Division discovers a pre-arrangement for reemployment with the same employer existed prior to the member’s retirement, this will constitute a sham retirement and the member will be required to repay all retirement benefits received, including any system-paid medical benefits, plus interest back to the retirement system.

  4. Re-Employment After 60 days, Age 62 years or Older

    Members who are age 62 or older at retirement may return to work with the same employer after 60 days but must show no pre-arrangement to return to work. (AS 39.35.152 ; AS 14.25.043 )

Terms specific to this policy:

  1. Sham Termination

    A situation where a member and his/her employer agree to a break in service for the member to commence his/her retirement benefits, but with a pre-arrangement for the member to return to employment with the same employer once retirement benefits have begun.

  2. Same Employer

    All branches, departments, divisions and sections with a single employer are under the umbrella of that employer. Reemployment with a different branch, department, division or section is deemed to be reemployment with the same employer.

  3. Early Distribution

    Under U.S. Code Section 72(t) , an early distribution of retirement funds, without satisfying one of the stated exceptions, results in a 10% tax penalty levied by the IRS on the member’s benefit. This is particularly relevant to members who are less than age 59 ½.

Employees:

  1. Notification

    The explanation will also be part of the instruction guide in the retirement packet, as well as communicated in seminars, one-on-one counseling, brochures and on the Division web site. A one-time mailing will be sent to all active employees advising them about the rehire rules.

  2. Education

    The rehire policy was communicated in the instruction guide in retirement packets, seminars, one-on-one counseling, brochures, and on the Division web site.

  3. Enforcement

    If a rehire is detected or reported with the same employer within less than 6 months from the member’s retirement and the member is under age 62, the Division will contact the employer and the member for confirmation that no prearrangement existed at the time of termination. Depending on the member’s age, the member’s 1099-R will be coded as an early distribution (without a known exception) as of the date of retirement. Any member who is contemplating re-employment with his/her same employer in violation of this policy should consult with his/her tax advisor regarding the effect of this enforcement action upon him/her.

Page Last Modified: 05/12/22 18:52:19

© State of Alaska || || drb.alaska.gov

Return FAQs

Who does this new policy affect?

The policy affects all members of the Public Employees’, Teachers’, Judicial and Elected Public Officer’s Defined Benefit Retirement Plans who retire or are reemployed effective January 1, 2018.

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What is the reason for the new policy on termination of employment and rehire of employees by the same employer?

In 2016 the Internal Revenue Service and Treasury Department released proposed regulations setting a normal retirement age of 62 years old. Although the proposed regulations have not been finalized, governmental plan sponsors may rely on them until the issuance of final regulations. The Division has conferred with its outside tax counsel and confirmed that to avoid potential early distribution tax penalties for our members and to avoid a risk of disqualification of our plans, retirees must clearly demonstrate a valid severance from employment with the participating employer before returning to any type of employment with the same employer.

While the Division of Retirement and Benefits (DRB) has required a minimum 30-60 day break-in-service period since 2005, the establishment of a federal normal retirement age of 62 to determine when an employee receives an in-service distribution has required a new policy to be adopted. The new policy follows the IRS guidelines for break in service duration and prevents tax penalties from being levied against our retirees.

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What does the IRS require for a valid termination to have occurred?

A valid termination has always been a requirement for retirement benefits to be effective. However, the IRS has issued guidelines for what constitutes a valid termination. For a valid termination of employment to have occurred there must be no prearrangement for reemployment prior to the member’s retirement date. In addition, members under age 62 must observe a six month break in service before reemployment in any capacity can occur with the same employer. Members age 62 or older must observe a 60 day break in service before reemployment in any capacity with the same employer.

Retiring members must certify on their retirement application, under penalty of fraud, that no prearrangement for employment exists.

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For PERS and TRS employees of school districts, does the three-month summer break count towards either the 60-day or 6 month requirements?

Yes. Clarification received from tax counsel indicates the summer break period can be used when calculating the number of months from the member’s retirement date to satisfy the break in service requirements for retirees from school district employers. For example, a teacher retiring on July 1 who is under age 62 would be able to return to non-TRS employment with the same employer on January 1st. A teacher retiring on July 1 who is age 62 or older would be able to return to non-TRS employment with the same employer on September 1st.

What is meant by “reemployment in any capacity”?

Reemployment in any capacity includes but is not limited to employment as a part-time, temporary, contract, or leased employee or as an independent contractor or any fee-for-service arrangement.

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Is the policy effective now?

The requirement for no prearrangement for reemployment has been in effect since 2005. If an employee does not sever the employer-employee relationship by having a break in service of 60 days before returning to employment, their termination of employment date is considered invalid and they are not eligible for retirement benefits.

The extended requirements for a break-in-service equaling six (6) months will become effective when the regulations have been adopted. This is estimated to be by January 1, 2018.

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Will the policy be applied retroactively?

As previously stated, the requirement for a valid termination is currently in effect. The increased break-in-service requirement of six (6) months for members under age 62 will be applied to retirees rehired after January 1, 2018.

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What happens to existing returned retirees when the regulation becomes effective?

The Division will administer the regulations prospectively for retirees rehired after the effective date and no retroactive action will be taken. However, the returned retiree is still subject to the requirement for a bona fide separation from service before receiving a retirement benefit. Should an IRS review of the retiree occur, a facts and circumstances review may be done and a final determination will be made by the IRS.

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If the returning retiree returns to a non-permanent position which does not receive PERS/TRS/JRS/EPORS benefits is the regulation still violated?

A retiree who returns to work with the same employer, without the required separation of service period, would have a violation of the return to work limitation regardless of whether the retiree was returning to work in a full-time, part-time or temporary position, or if the retiree is returning as a leased employer or an independent contractor.

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Does this policy apply to substitute teaching on an incidental basis during the waiting period?

Yes. The policy applies to all employment with the employer and would include substitute teaching on an on-call or incidental basis.

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Can we undo a hire if we accidentally hire someone within the 6-month period?

Yes. There is a “window of correction” period for correcting ineligible hires. The employer must determine if a retiree is eligible for rehire before the hire is made. If it is later discovered the employee is not eligible, the employer may make corrections and back the hire out of their system during the first pay period. Members who are still employed after the first pay period who have not served the break in service requirements will be deemed to be in violation or the rehire policy.

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What is the corrective action?

The Division will first do a facts and circumstances review to determine if a prearrangement for reemployment was made prior to the member’s retirement date. This will require certification from the employer to the facts and circumstances of rehire.

If a prearrangement for rehire was in effect, the member will be deemed to not have had a valid termination of employment and must repay the Division the full amount of retirement benefits received since the effective date of their retirement.

If no prearrangement for rehire was in effect and the member is under age 62, the Division will be required to code the member’s retirement benefits retroactively to date of retirement (or to January 1, 2018 whichever is later) as an early distribution and a 10% tax penalty will be levied by the IRS for an early distribution of retirement benefits. Retirement benefits will be stopped as of the date of re-hire.

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If an employee retires in TRS, can I hire them back in a PERS position?

No. The key to this requirement is whether the employee/employer relationship has been severed, not what retirement plan the member participates in. An employee must still observe the six (6) month break-in-service period before rehire with the same employer. The fact that the employee would be a member of a different retirement system before and after the return to work is irrelevant to the requirement.

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Does the period of absence only apply to the employer from which the employee is retiring, or does it apply to all PERS, TRS or EPORS participating employers? For example, if a State PERS employee retires July 1, can the employee go to work for a city on August 1 without violating the requirements?

Yes. In order for the IRS to consider an employee to be “retired,” the IRS requires an employee to have a bona fide separation from service with the employee’s employer. Therefore, based upon this example, a State PERS employee could retire on July 1 and immediately commence non-covered employment with a local government, even though the local government also is a PERS employer. The requirements refer to employment with the same employer only.

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What if the employee is a State employee working for the Department of Administration? Can the employee immediately return to employment with a different department with the State?

No. A State PERS employee could not retire from one department of the State and then begin work with another department of the State without fulfilling the six (6) month break in service. The reason for this is because all departments and branches of the State are considered to be part of the same employer – e.g. the State of Alaska.

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How does it work for the PERS and TRS Defined Contribution Retirement Plans (PERS/TRS DCR)? Will they not be able to touch their money for six months?

The requirements for bona fide termination apply to both PERS/TRS defined benefit and defined contribution plans. There can be no pre-arrangement for reemployment with the same employer prior to termination of employment. If a PERS/TRS DCR Plan member terminates employment and withdraws their funds, they will automatically pay the 10% early withdrawal penalty if they are under age 59 ½ per the defined contribution plan rules. PERS/TRS DCR Plan members must be terminated from employment for 60 days before their funds can be disbursed as part of the current plan rules.

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How will I know if the person I’m considering hiring is a retiree who has not been retired for six (6) or more months?

To protect the prospective employee, you can tell them that if they are a retiree and have been for less than six months to contact the Division of Retirement and Benefits to be sure they can accept employment without consequence. As the employer, your responsibility is to not have a prearrangement for retirement and to caution prospective employees about the rehire rules. Employers may also contact the division to determine eligibility for rehire. Most employer payroll staff should be aware of their own employees who have recently retired and are now back to work with the same employer.

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The employee is eligible for retirement in the PERS but has moved to a different position with the same employer covered by a different retirement plan. Can they draw their PERS benefits while they are working in this other position?

No. Since they have only changed retirement systems and have not terminated employment with the employer, they will not be able to draw their PERS benefits while continuing employment. They will be eligible to draw your PERS benefits only when they actually terminate employment.

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Employer FAQs