Some ACERA retirees will return to work after their ACERA retirement.
Working After Retirement for Employers Besides ACERA Participating Employers
You may work for any employer other than an ACERA participating employer for any amount of time without affecting your retirement allowance.
Working After Retirement for an ACERA Participating Employer
ACERA retirees wishing to return to work for one of ACERA’s participating employers have two options:
1. Returning to Service (Work) and Suspending Your Retirement Allowance
ACERA retirees now have the option to return to work for an ACERA participating employer and suspend their retirement allowance while they work. If you choose this option, you’ll start a new period of active ACERA membership—earning additional service credit and increasing your future retirement benefit.
Here’s how it works:
- Reemployment is not available to an employee who took an inducement to retire.
- Your retirement allowance payments will stop while you’re working again.
- You’ll resume active ACERA membership in the same tier you were in before you retired.
- During this second period of service, you’ll earn additional retirement service credit and make contributions to ACERA just like other active members.
- You can retire again at any time, regardless of how much service credit you earn—you don’t need to reach five years of service to vest in a new benefit.
When you retire from this second period of service:
- ACERA will calculate a second retirement allowance based on:
- the service credit earned in your second period of work,
- your age at the time of your second retirement, and
- your highest average monthly salary during your period of reemployment.
- We’ll restart your original retirement allowance, including any cost-of-living adjustments (COLAs) you would have received if you hadn’t returned to work.
- We’ll add the new allowance to your restarted original allowance, giving you a higher total retirement benefit going forward.
This new path allows you to grow your pension by working more and contributing again, then enjoying an increased benefit once you retire a second time.
2. Returning to Work and Continuing Your ACERA Retirement Allowance (Working as a Retired Annuitant)
ACERA retirees who return to work for an ACERA participating employer who wish to continue receiving their ACERA retirement allowance while they work are subject to rules, regulations, policies, and laws which govern your work as what’s known as a “Retired Annuitant.”
In situations where the participating employer believes an ACERA retiree possesses special skills or knowledge, the law allows the participating employer to hire that retiree on a temporary basis—for a limited duration and for a period of 960 hours per fiscal year—without suspending the retiree’s retirement allowance. The following restrictions apply:
- You May Not Have a Prearranged Agreement to Return to Work: A member who retires cannot have a prearranged agreement (either written or oral) to return to work for the employer after retirement, regardless of the length of the break in service.
- General Members Must Wait 180 Days: Regardless of your age at retirement, general ACERA members who have retired won’t be eligible to return to work (for a limited duration, in any capacity, in any form) for an ACERA employer for a period of 180 days following retirement, except under special circumstances. (This even applies to work under contract or via an employment agency).
- If there are special circumstances, the employer can certify in writing it is necessary to fill a critically needed position and the hiring has been approved by the Board of Supervisors or governing body of the Participating Employer in an open public meeting and not on the consent calendar.
- Safety Members Under 50 and General Members Under 62 Must Wait 90 Days: ACERA safety members cannot return to work within 90 days of retirement if they retire at an age younger than 50, or general members younger than 62, except under special circumstances, under IRS rules.
- You May Not Work For More Than 960 Hours Per Fiscal Year: An eligible retiree may return to work for a limited duration of time with a participating employer and for a period of 960 hours or less in any fiscal year and continue to receive his/her retirement allowance. Sometimes this is called becoming a “Retired Annuitant.” During this limited duration post-retirement employment, the member will not accrue any additional ACERA service credit or pension benefits, nor will the member or the employer pay contributions for this service.
- Your Pay Must Fall Within the Range of Other Employees Performing Comparable Duties
- All Incentivized Retirees (General and Safety) Must Wait 180 Days: ACERA members who received a retirement incentive, such as a golden handshake or early separation program payoff, won’t be eligible to work for an ACERA employer for a period of 180 days following retirement.
- You Cannot Have Collected Unemployment Compensation Within the Prior 12 Months: You are not eligible to return to work if you have collected unemployment compensation arising out of prior employment with a public agency during the 12 months before your appointment to the position with one of ACERA’s participating employers.
Working After Retirement May Affect Social Security
Working after retirement may affect your Social Security benefit. Check the Social Security website for more information.
