Working After Retirement
When retiring from Fort Hays State University, you want to make sure you understand the retirement plan rules relating to any return to service. The sections below outline important information for Kansas Board of Regents (KBOR) and Kansas Public Employees Retirement System (KPERS) retirees who are considering working after retirement. A bona fide separation from service is required for purposes of accessing retirement funds.
Mandatory Waiting Periods
KPERS and KP&F retirees: KPERS has very strict rules surrounding the topic of working after retirement and there are serious penalties for violating these rules. Kansas law requires a 60-day waiting period prior to application for reemployment and the rehire of a retired KPERS members over age 62 and a 180-day waiting period for retired KPERS member under age 62. Retired KP&F members are required to have a 30-day waiting period prior to application for reemployment and rehire. The waiting period begins after the KPERS and KP&F retirement date which is always the first of the month following retirement.
Retirees can’t make prearrangements to return to work. That means you can’t communicate in any way with your employer about an intent to return to work. That’s before you retire and during the waiting period. You’ll verify this as part of your retirement application. Kansas law defines “prearrangement” as a situation where the employer and employee reasonably anticipate employment after retirement. Interviews, applications, and even written and verbal communication about further employment are prearrangements.
If you violate the wait period or rules surrounding prearrangements, the penalty is that your benefits are suspended starting the month you returned to work and ending six months after you end employment. You’ll also repay benefits paid to you while you were working after retirement.
See KPERS: Working After Retirement for more information about waiting periods, the requirement that no prearrangement to return work can be made before the applicable waiting period expires and any applicable earnings limits or special employer fringes paid on compensation.
KBOR Mandatory Plan retirees: There is no KBOR required waiting period before a retired KBOR Mandatory Plan member can be rehired. However, the Kansas Board of Regents require a bona fide separation of service in order to be able to access your KBOR mandatory plan retirement funds. Access to KBOR voluntary plan retirement funds also requires a bona fide separation in most cases.
A bona fide separation means that you have no plans to return to service at any KBOR institution. Once you have intentions of returning to service, you may face a tax liability for any distributions that occur, and after returning to service you will no longer be able to access retirement funds until you separate service. Please note that this applies to returning to service in ANY position at a KBOR institution and is not limited to benefit-eligible positions
If a covered employee takes distribution from the 403(b) Mandatory Plan after retirement and is later rehired, if the retirement is not bona fide, penalties or additional taxes could result. Upon rehire, into any position, the KBOR retiree will no longer be permitted to access mandatory 403 (b) funds. See the Kansas Board of Regents Bona Fide Separation from Service memo for more information about taking distribution from your KBOR 403(b) Mandatory Retirement Plan or speak directly with a TIAA or Voya representative.