As a PERA retiree, you can work for a non-PERA employer without any restrictions. If you return to work for a PERA employer, you will be subject to certain working after retirement rules and restrictions, including limits on how much you can work. Otherwise, you’ll face a reduction in your monthly benefit.
Does working after retirement increase my monthly benefit?
No, working after retirement will not increase your monthly benefit. However, if you suspend your retirement and return to work, you can accrue an additional benefit segment.
Will PERA contributions be deducted from my paycheck as a retiree?
Yes, if you work for a PERA employer, you must pay working retiree contributions at the same rate as working members of that employer.
Working After Retirement Limits
What are the limits on working after retirement?
In most cases, you can work for a PERA-affiliated employer for up to 110 days or 720 hours per calendar year without affecting your benefit. See the Working After Retirement booklet for more details, as well as exceptions.
Can I volunteer for a PERA employer without limits?
Yes, you can volunteer for a PERA employer for as many hours as you want, except on the first business day of the month in which your retirement is effective.
Do I have to leave my job before returning to work as a retiree?
Yes, you must fully terminate all PERA employment in order to retire. Under state law, you cannot volunteer or work on the first business day of the month in which your retirement is effective. If you do not properly terminate your employment before retiring, PERA may cancel your retirement and collect back any benefits already paid to you. If you work for a PERA-affiliated employer any other days in the month in which your retirement is effective, we must reduce your benefit for each day you work during that month.
I’m receiving a disability retirement benefit. Am I subject to the same limits?
As a disability retiree, you may have different working after retirement restrictions based on factors such as your benefit structure (PERA or DPS) and when you retired. See the Working After Retirement booklet for more details.
If I’m a cobeneficiary or survivor of a PERA member receiving a benefit, am I subject to working after retirement limits?
No, you are not subject to any working after retirement limits unless you also receive a monthly benefit for time worked for a PERA employer.
Working Beyond The Limits
How much will my benefit be reduced if I exceed the work limits?
If you exceed the work limit in a calendar year, we’ll reduce one month’s benefit by 5% for each day you worked beyond the limit. If your reduction reaches 100% of your benefit, the reduction will carry forward to reduce future months’ benefits.
Why can some retirees work for 140 days or 916 hours per year?
Under state law, employers in the School and Denver Public Schools (DPS) divisions, as well as state colleges and universities, can designate up to 10 retirees who can work up to 140 days or 916 hours without a reduction in their benefit.
How do I know if I’m designated as a 140-day/916-hour or critical shortage retiree?
Your employer must designate you to work beyond the usual working after retirement limits. If you are designated as a 140-day/916-hour or critical shortage retiree, PERA will send you a letter each year. Be sure to verify your status with your employer before working beyond the limits.
What are critical shortage positions, and what are the rules for them?
Rural school districts, charter schools within rural school districts, and Boards of Cooperative Educational Services (BOCES) within rural school districts can declare a critical shortage of qualified teachers, school bus drivers, food service workers, school nurses, or paraprofessionals. If you’re hired to work in a critical shortage position and properly designated by your employer to PERA, you are not subject to working after retirement limits for that employment. However, you would not be eligible for any subsidy for PERACare coverage while designated as a critical shortage retiree.
Additionally, a school district or charter school may determine there is a critical shortage of qualified substitute teachers. A retiree performing services to a school district or charter school that has made such a determination is not subject to working after retirement limits for that employment only if the retiree holds an active Colorado teaching license.
See the Working After Retirement booklet for more details, including any dates such critical shortage exemptions expire.
