post retirement employment · 2012-12-13 · post-retirement limits the 90/180 day rule •...
TRANSCRIPT
Post–Retirement Employment
Retired Teachers
Agenda
• THE MOST IMPORTANT REQUIREMENT- THE 30-
DAY BREAK IN SERVICE.
• Post-Retirement Limits - The 90/180 Day Rule.
• The “Good Faith Effort” for Vacant Positions.
• Substitute Teaching.
• Working for Corporations.
• Post-Retirement Limits - The 75/150 Day Rule.
• Post Retirement Employment Prohibitions and Limited
Exceptions.
• Exceeding the Limits.
• Volunteering and Post-Retirement Employment.
2
THE MOST IMPORTANT
REQUIREMENT- THE 30-
DAY BREAK IN SERVICE • The guiding rule is §401(a) of the IRS Code regarding
“in-service” distributions.
• Fundamental requirement of the Code: The employee must retire and terminate employment
• Such employment or re-employment may begin no earlier than 30 days from termination of active service and retirement.
• There should be a clear separation from service and subsequent re-employment that is not pre-arranged or so short in duration as to raise a legitimate issue of whether there has been a true separation.
3
THE MOST IMPORTANT
REQUIREMENT- THE 30-
DAY BREAK IN SERVICE
• The termination should be consistent with any other
retirement and termination i.e.:
– discontinuance of benefits;
– payment of any accrued vacation, sickness or other benefits that
are paid in the course of termination of employment by state law
or other employment practices
• No additional contributions may be made by or on behalf
of the retired member.
• No additional pension credits can be earned.
4
Post-Retirement Limits
The 90/180 Day Rule
• Pursuant to the RIGL, half-days of teaching are 3 hours
or less.
• The school year is generally Sept. 1 to Aug. 31, but may
vary by school department.
• If you hire a retired Teacher in a part-time position, the
number of days worked is based on a standard school
year and is calculated by the percentage of the position.
– For example, 2/5 equates to 72 full working days (2/5 x 180 =
72). The retired teacher may not work more than half-time, as
that would exceed the 90-day limit.
5
Post-Retirement Limits
The 90/180 Day Rule
• Monthly pension benefits will be suspended in the event
there is no 30 day break in service.
• Teacher retirees may substitute teach or fill a vacant
position for no more than 90 full days or 180 half-days in
any one school year.
6
The “Good Faith Effort”
Vacant Positions
• For Teachers, no employment to fill a vacant position may be offered to a retiree subject to §16-16-24 unless:
– the employer has made a good faith effort to fill the position with a non-retired employee without success.
– certifies in writing that it has done so to ERSRI and to the bargaining agents of all education unions with whom the employer has collective bargaining agreements.
• Notice of the employment must be sent monthly to the ERSRI by the employer and retired employee.
• A vacant position includes, but is not limited to, a tutor, mentor principal or mentor assistant principal.
7
Substitute Teaching
• The literal meaning of substitute is utilized meaning that you
must be working in place of a regular employee who is absent.
• Substitute teaching is limited by law to “Teachers” (as defined by RIGL §16-16-1(12)) who are substitute “teaching” (as defined RIGL §16-16-(13)).
• Substitute teaching is limited to teaching, supervising and superintending or assistant superintending of schools. Note that this includes Principal and Administrator positions in which the job description includes direct supervision of personnel.
8
Working for Corporations?
At its January 10, 2001 meeting, the Retirement Board
adopted the following policy:
“Voted: To accept the recommendation of the Rules and
Regulations subcommittee that the intention of the law and
regulations of the Retirement Board is a person may not do
as a corporation, or as an employee of a corporation, what
an individual cannot do.”
9
Post-Retirement Limits
The 75/150 Day Rule
Post Retirement Employment Other Than as a
Teacher in Participating Municipalities.
• This law applies if you are a retiree working in a school
department but not as a Teacher who is substitute
teaching or filling a vacant position.
• Teachers can fill a non-certified position in a school
department, for example, custodian, secretary, clerk,
etc., for no more than 75 days or 150 half days.
– The 75 day figure is calculated on a school year basis (generally
September 1 through August 31).
10
Post-Retirement Limits
The 75/150 Day Rule
• You may also work for a participating municipality for no
more than 75 days or 150 half days in a calendar year
(January – December) filling any other position.
• A half day is considered 4 hours or less.
11
Summary Clarification on
Reporting
• As a retired Teacher substitute teaching or filling a
vacant position, a half day is 3 hours.
• As a retired Teacher working as a custodian, secretary,
clerk, etc. in a school department, a half day is 4 hours.
• In both cases, the school year is generally September 1
through August 31. The school years may vary by
department.
• Contact your office of employee benefits to determine
the effect of a suspension of your pension benefit on
your healthcare. 12
Post-Retirement
Administration
• Monthly reporting forms are available on our website at
http://www.ersri.org/public/forms/PostRetirement.pdf.
• Both the employer and the employee must sign the form.
• Incomplete forms will be returned to the employer and
the retiree risks a suspension of their benefit.
• Disability retirees are also subject to the laws governing
post-retirement employment and additional statutory
wage limitations.
13
Post Retirement Employment
Prohibitions and Limited
Exceptions
• No retiree may work for the State of Rhode Island in any
capacity.
• If you do work for the State of Rhode Island, your
pension benefit will be suspended for the duration of any
employment or re-employment.
• Retirees may be employed or reemployed at a State
School, College or University for the limited purpose of:
– classroom instruction
– academic advising
– coaching
– driver education and/or motorcycle driver education
14
Post Retirement Employment
Prohibitions and Limited
Exceptions
• Gross wages cannot exceed $15,000 in any one
calendar year and must be reported to the retirement
system at the end of each calendar year.
15
Exceeding the Limits
• Any violation can mean a suspension of retirement
benefits for the retiree.
• Rhode Island General Laws, Titles 36, 16 and 45 all
address post-retirement employment and the limitations
associated with this type of employment. In the event the
retiree/employee exceeds either the day limit or
monetary limit, the pension benefit shall be suspended.
• If you exceed any of the limitations, there will be a day
for day offset on a pro rata basis of your monthly pension
benefit.
16
Exceeding the Limits
• If you work for a State School, College or University and
you exceed the $15,000 per calendar year limitation,
there will be a dollar for dollar offset of your monthly
pension benefit i.e. - ERSRI will recoup any amount
over the $15,000 limit from your monthly pension benefit.
• In order to reactivate the pension benefit, which is
effective as of the date of retirement, ERSRI must be
notified by both the employer and employee when the
post-retirement employment ceases.
17
Volunteering and Post-
Retirement Employment
• VOLUNTEERING is limited to a position for which you
would not normally be paid.
• You must not be paid any remuneration or consideration
whatsoever for any period prior to, during, or after
fulfilling the positional requirements, including but not
limited to a training period, orientation, or probationary
period.
• The employer must provide a letter to ERSRI which
certifies that the member is volunteering for a particular
position and is not receiving any remuneration or
consideration whatsoever for any period of the
volunteering.
18
How can I get answers to my
questions regarding my
participation in post-
retirement employment?
• On our Website at www.ersri.org
– eCompass newsletters
– Employer and Employee handbooks
• Memoranda provided to all MERS and ERS Units
including School Departments and the State of Rhode
Island.
• Compass newsletter sent directly to your home address
and via email.
• Call Our Office at: 401- 457-3900
19
How can I get answers to my
questions regarding my
participation in post-retirement
employment?
• Email us at: https://www.ersri.org/public/contactus/
• Write to us at:
40 Fountain Street, 1st Floor
Providence, RI 02903
• Reference Rhode Island General Laws §36-10-36, 16-
16-24, and 45-21-54.
• Ask for a Live Presentation for your Department or
Agency
20
Thank You For Your Attention!
Questions?