Understanding the rules around hiring an ASRS retiree is important. While it is the member’s responsibility to ensure compliance with the ASRS Return to Work rules and statutes, it is also the employer’s responsibility to help ensure compliance. Failure to do so can result in suspension of benefits and repayment of unlawfully paid benefits. Employers should check the retirement status of all their new hires using the Check Member Eligibility Tool. Instructions for using this application are available here.
In general, a member who has attained normal retirement status may return to work for an ASRS employer and stay below the membership criteria threshold of "20/20" without suspending their pension benefits. A Return to Work (RTW) form is required from the member. The Alternate Contribution Rate (ACR) is required from the employer.
"Normal Retirement" Retirees
- Newly retired members who have attained normal retirement status must either stay below the membership criteria threshold for 365 calendar days after their termination date, or opt to suspend their pension benefits. If the member suspends their pension, normal contributions are required.
"Early Retirement" Retirees
- Members who choose to take early retirement must stay below the membership criteria threshold indefinitely, or until they "age into" normal retirement, and must have been terminated for 365 calendar days or suspend their pension benefits.
In any Return to Work scenario, either normal contributions or ACR is required, regardless of the number of hours worked. All ASRS retirees who return to work (except for third-party contracts) should submit an Online Return to Work form. This process will verify the retired member's status and advise the employer of the required actions.
- Additional information regarding hiring retired members can be found in the ASRS Employer Manual, sections 4-14 through 4-18.
- Information regarding the Retiree Return to Work Smart Form is available here.
By William Roberts, Employer Relations
Published 7.23.24
