If you are starting to think about retiring and drawing a pension from the Arizona State Retirement System (ASRS), you may find yourself wondering about your options if you’d like to later return to work. The choice is yours – you can certainly keep collecting a monthly pension from the ASRS and go back to work, but it’s important to make sure you proceed in a manner that doesn’t impact your pension.
Choosing Where to Work
The easiest way to go back to work and not affect your future pension benefit is to work for someone who isn’t an ASRS employer. We have zero rules, regulations, or statutes regarding working as much or as little as you wish for a non-ASRS employer while collecting your ASRS pension; coffee shop, hospital, in Arizona or abroad – the choice is yours. Some retirees work through external staffing agencies, independent contractor arrangements, or Professional Employer Organizations (PEOs) to perform duties for an ASRS employer (e.g., school districts, universities). This type of employment does not require a Return to Work form to be completed.
If you do decide to return to work directly for an ASRS employer, it’s still possible to collect your pension and work at the same time, but there are rules you must follow so that your pension is not suspended or adversely affected. This article will help explain the process of returning to work for an ASRS employer so that you can return to work with confidence. (Note, it is also possible to return to Work, suspend your pension, and begin contributing again. Members often choose this option if they want to positively impact their Graded Multiplier based on years of service, or Average Monthly Compensation (AMC) with the intent of increasing the pension they were receiving.)
Return to Work Form
The most important thing to remember is that all retirees returning to an ASRS employer must fill out a Return to Work Form. This form allows you to indicate to the ASRS how many hours a week and weeks in the year you intend to work. Why is this important? This information is vital to the ASRS because we must ensure that all retirees are adhering to the 20/20 criteria, explained below.
20/20 Criteria
The 20/20 criteria is a key guideline to keep in mind when returning to work as a retiree. There are many ways that this rule can affect a member depending on their chosen Return to Work path. In general, if an ASRS retiree returns to work for an ASRS employer and works (or agrees to work) 20 or more hours a week for 20 or more weeks in a fiscal year (referred to as 20/20 criteria), their monthly pensions will be suspended and active membership resumed.
This rule applies differently depending on your situation. For example, whether you retired early or after reaching normal retirement age, and how long you’ve been retired, can impact how the 20/20 criteria affects you. The best way to determine how you and your pension may be affected is to use the Return to Work tool in the Working After Retirement section of your MyASRS secure account. To read more about the specifics of the 20/20 criteria, please visit the Return to Work page of our website.
Move Forward with Confidence
Returning to Work after retirement can be a great way to stay active, contribute, and boost your income, but it is important to do so with a clear understanding of the ASRS Return to Work statutes. By taking a few simple steps, like submitting the Return to Work form and staying informed on the 20/20 criteria, you can avoid unexpected interruptions to your pension while making the most of your pension. Whether you’re returning full-time, part-time, or just checking it out, the ASRS is here to support you every step of the way. Be sure to log into your MyASRS account and use the tools provided to help plan your return to the workforce with confidence.
