Following the web-based guidance below, re-employment of retirees is allowed after the first month of retirement for FRS Pension Plan and the Optional Retirement Plan (ORP). The FRS Investment Plan has a 3 month period beginning after the first distribution.
Certain pension benefit restrictions apply during the first year of retirement depending on the retirement plan type (ORP, FRS, FRS Investment).
FRS Pension Plan and the Optional Retirement Plan (ORP): During months 2 – 12, can be re-employed as an adjunct faculty up to 780 hours and not affect retirement benefit; re-employment as any other appointment type would suspend retirement benefit payments for the months worked. There are no restrictions after the 12th month.
FRS Investment Plan: No re-employment for 3 months following the first benefit distribution. Re-employment after the 3 months following the first benefit distribution is restricted for 12 months. Can be re-employed as an adjunct faculty up to 780 hours and not affect retirement benefit; re-employment as any other appointment type would suspend retirement benefit payments for the months worked. There are no restrictions after the 12th month.
Following the 12 month restrictions, retirees may be re-employed as either OPS or on a position with full benefits. The re-employed retiree can choose between the FRS Pension or Investment Plan (A&P or Faculty, may choose the Optional Retirement Plan (ORP)). If the retiree chooses the same plan as previously enrolled, the vesting period would start again as of the re-hire date.
Budgeted Fringe Rates
Positioned appointments: Full Fringe rates apply, budgeted @ 18.33%
OPS appointments: taxes are budgeted at the non-student OPS rate of 8% (unless Phased Retiree)
