Employer Contributions Required When Hiring a PERA Retiree

Starting with the first paycheck issued on or after January 1, 2027, employers must pay employer contributions for any PERA retiree hired into an eligible position. This includes individuals participating in a Phased Retirement Option (PRO) and retirees who continue working after reaching full retirement age.

Employer contributions must be paid at the rate applicable to the current position held. No employee contributions should be withheld.

Examples

• A member participating in a Phased Retirement Option (PRO) continues working in a Coordinated Plan position. The employer contribution rate is 7.5% of eligible salary.
• A retiree returns to work at age 75 as a correctional officer. The employer contribution rate is 9.0% of eligible salary.
• A retiree returns to work as a part-time police officer. If your agency places all part-time police officers in the Police & Fire Plan through a resolution, the employer contribution rate is 17.7% of eligible salary. 

Programming Updates

Three new Exempt Plan ID codes will be created:

• 31: Retiree working in a Correctional Plan position
• 32: Retiree working in a Coordinated Plan position
• 33: Retiree working in a Police & Fire Plan position

If you hire anyone that should be reported in Exempt Plan ID 99 as of January 1, 2027, contact PERA for assistance.

Employers must report and pay contributions for Exempt Plan members separately from their regular contribution files and payments.