HR45 Post-Retirement Appointments

POLICY'S INITIAL DATE: November 16, 1962

THIS VERSION EFFECTIVE: October 12, 2022

Contents:

• Purpose
• Definitions
• State Employees' Retirement System (SERS)
• Public School Employees' Retirement System (PSERS)
• Penn State Alternate Retirement Plan (TIAA)

PURPOSE:

To establish parameters around re-employment of University retirees. 

DEFINITIONS:

State Employees' Retirement System (SERS) Participant: Any individual enrolled in or receiving a pension from the State Employees' Retirement System.

Public School Employees' Retirement System (PSERS) Participant: Any individual enrolled in or receiving a pension from the Public School Employees' Retirement System.

Penn State Alternate Retirement Plan Participant: Any individual enrolled in or receiving a retirement income from the Penn State Alternate Retirement Plan (TIAA). 

STATE EMPLOYEES' RETIREMENT SYSTEM:

Under Pennsylvania law, a SERS annuitant may not be employed by the University, either full-time or part-time, and continue to receive annuity payments from the State Employees' Retirement System, except under the following provisions: 

1. An emergency situation, as determined by the University, that creates an increase in the workload such that there is a serious impairment of service to the public (emergency return to service). The annuitant must be paid on an hourly basis and the period of such employment may not exceed an aggregate of ninety-five (95) working days in one calendar year. Any amount of the time worked less than one-half a day shall be counted as one-half a day for the purposes of calculating time worked; time worked in excess of one-half day shall be counted as a full day. The wages received shall not be considered compensation for retirement purposes. The service performed will not be considered creditable service, and, as such, no SERS contributions will be withheld. The individual must be advised in writing of these conditions prior to accepting the post-retirement appointment. Any University retiree benefits in effect prior to post-retirement appointment shall continue. 
2. In special circumstances that permit the individual to be retained as an independent contractor, see IRS regulations. 

In all cases, one pay period must have elapsed following termination of or retirement from full-time employment prior to a post-retirement appointment. 

Employment other than under these specific exceptions will result in termination of SERS annuity payments for the period of employment. Employees may contact SERS for information on other penalties that may apply. 

PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM

Under Pennsylvania law, a PSERS annuitant may not be employed by the University, either full-time or part-time, and continue to receive annuity payments from the Public School Employees' Retirement System except under the following provisions: 

1. An emergency exists, as determined by the University, that creates a serious impairment of service, or there is a shortage of subject-certified teachers (emergency return to service);
2. If employed part-time in an extra-curricular capacity, duties are performed primarily outside the regular instructional hours and not part of the mandated curriculum;
3. If employed full-time and enrolled in an alternate approved pension plan offered by the University;
4. In special circumstances that permit the individual to be retained as an independent contract, see IRS regulations.

In all cases, ninety (90) days must have elapsed following termination of or retirement from full-time employment prior to a post-retirement appointment. 

In the event of an emergency return to service of a PSERS annuitant, they must be paid on an hourly basis and the period of such employment may not exceed beyond the length of the school year (fall to summer) in which the emergency or shortage occurs. The wages received shall not be considered compensation for retirement purposes. The service performed will not be considered creditable service, and, as such, no PSERS contributions will be withheld. The University retiree benefits in effect prior to post-retirement appointment shall continue. The individual must be advised in writing of these conditions prior to accepting the post-retirement appointment. 

In addition, PSERS annuitants hired in a part-time extra-curricular (for example, activities such as ushering at Bryce Jordan Center events or other sporting events) capacity, the retiree will need to sign a PSERS waiver, as per the requirements. 

PENN STATE ALTERNATE RETIREMENT PLAN (TIAA):

A Penn State Alternate Retirement Plan participant is intended to be employed by the University only on a temporary basis and continue to receive such annuity payments to which they are entitled. 

The retiree shall be paid on an hourly basis and wages received on post-retirement appointment shall not be considered compensation for retirement purposes. The service performed will not be considered creditable service, and, as such, no contributions will be withheld. The individual considering returning must be advised in writing of these conditions prior to accepting the post-retirement appointment. Any University retiree benefits in effect prior to the post-retirement appointment shall continue. 

Updates:

October 12, 2022 - Policy revised for clarity. 

July 1, 2022 - Policy revised for clarity and terminology updates. 

February 15, 2012-Revised policy.

January 26, 2011 - Added "or designee" throughout policy.

Cross References:

HR29 - Voluntary Phased Retirement Program

HR54 - Continuation of Group Insurance After Age 60, Age 65, and After Retirement or Death

RAG09 - Processing Sponsored Projects Involving Retired Faculty Participation