Working After Retirement

Working After Retirement

After retiring from PERA, you may decide to return to work. If you’re considering returning to work for a PERA-covered employer, it is important that you understand the state and federal rules regarding working after retirement.

Meet Termination Requirements

First and foremost, you cannot have a prearranged agreement to return to public service before you separate employment.  In addition, you will need a complete and continuous 30-day separation from all Minnesota public service, as well as have that first pension check in hand prior to returning to PERA-covered employment.

Once you’re cleared to return to employment covered by PERA, you may be impacted by earnings limits depending on your age.

Earnings Limits

While there are no earnings limits if you are over Social Security’s full retirement age, if you return to PERA-covered work prior to that age, you must remain within the annual limits established by Social Security. Earnings limits for 2022 are $19,560 if you are under full Social Security retirement age, or $51,960 if you reach your full Social Security retirement age in 2022. If these limits are exceeded, your PERA pension may be reduced or suspended.

Be aware—these annual limits apply only to income from a PERA-covered job. Income earned through private-sector employment, self-employment, investments, and elected service will have no impact on your pension.

If your pension is reduced due to exceeding the annual earning limits, the withheld funds will be kept in an escrow account. The funds can be recovered at a later date, either as a lump sum or by rolling them over to another tax-qualified plan.

Learn More

For more information on working after retirement, check out our new Working after Retirement brochure!