Restrictions for post-retirement reemployment are complex. Before hiring retirees who receive a monthly benefit from URS, employers should contact our Retirement Benefits Department to find out how returning to work may impact retirees’ retirement benefits.
Reemployment includes work or service performed on a contract for a participating employer if the retiree is listed as the contractor; or an owner, partner, or principal of the contractor U.C.A. § 49-11-1202.
Please be aware of the following post-retirement reemployment restrictions.
If retirees are employed by a participating employer within 60 days of their retirement date with Utah Retirement Systems (URS), their retirement benefit will be canceled, and they will be returned to active status and earn additional service credit, if they are eligible for service credit accrual.
The retiree may be employed with a participating employer and continue to receive a retirement benefit with URS if the following criteria are met:
» The retiree cannot receive any employer-provided benefits including, but not limited to: medical, dental, paid time off, annual leave, sick leave, HSA plan, and other insurance benefits, excluding workers’ compensation.
» The retiree’s salary is limited to the lesser of $20,304.30 or half of their final average salary during a calendar year. The salary limitation is updated in February of each year. If retirees exceed the earnings’ limitation or receive benefits, their retirement allowance will be canceled.
» No post-retired contribution is required.
The retiree may be employed with a participating employer, after July 1, 2025, and continue to receive a reduced retirement benefit with URS under the following provisions:
» The employer pays the full contribution rate.
» The retiree receives a reduced benefit while reemployed. If a member retired under the Public Safety or Firefighter system, the benefit is reduced by 15%. If a member retired under the Public Employee system, the benefit is reduced by 20%.
» The retiree may not receive a cost-of-living adjustment while reemployed.
After one year, the retiree no longer has the restrictions stipulated within the first year of retirement and may choose one of the following options:
» Earn a salary and continue to receive the retirement benefit;
» Earn a salary and cancel the retirement benefit to earn additional service credit;
•If reemployed for at least two (2) years, a separate benefit will be calculated based upon the new service and salary at the time of the second retirement.
•The second retirement will be calculated on the formula in effect at the time of the second retirement.
•The original retirement benefit and the new retirement benefit will be combined.
•If the employee retires before two (2) years from the cancellation date, their original benefit is resumed without earning additional service or salary credit.
•If the retiree elects to cancel their retirement allowance and earn service credit, our office will notify you of the change. If the retiree was hired more than 60 days before our notification, complete a paper Certification (Form EMCE-1) for URS. Note: In this instance, the employee is NOT considered post-retired reemployed because they have chosen to cancel their retirement allowance.
•Change the election in the contribution file and begin paying the new contribution rate for the retiree. Note: Our office may send a bill for the difference in contributions paid during the retiree’s time worked prior to the statute change.
•Complete and send our office an Employee Separation Notice (Form ADNT-3), for any retiree who subsequently leaves employment.
» If the retiree continues to receive their retirement allowance, the employer is required to contribute the amortized actuarial cost for the retiree to our office. The amortized actuarial cost is due for any retiree returning to work after one year, regardless of hours worked or benefits received. This contribution is needed to continue funding the system in lieu of hiring an employee who would normally be contributing into the system.
Retirees must separate from employment (including part-time and contract arrangements) with any participating employer for one year from their retirement date with URS. If retirees are re-employed after 60 days, but within one year from their retirement date, the Separation Requirement will not be met until they complete 12 consecutive months of separation from employment with all URS participating employers.
URS retirees may work, and earn any amount, in private industry without URS penalty.
Retirees can only earn service credit when they elect to cancel their retirement benefit to earn additional service credit or their retirement benefit has been canceled upon returning to post-retired reemployment within one year of their selected retirement date. If they then retire anew after two years, the original benefit is reinstated, on the original retirement formula; any new service credit earned is calculated on the formula in effect at the time of the second retirement. If they retire anew before two years from the cancellation date, their original benefit is resumed without earning additional service and salary credit.
» Active senior judge returning to work based on an appointed-to-hear cases by the Utah Supreme Court.
» A retiree who takes office as an elected part-time official, as certified by the participating employer.
» Affiliated emergency service workers working for an employer other than the employer from which they retired. The employee must be on the rolls of a participating employer and receiving regular training in skills required to perform emergency services such as: a volunteer firefighter, reserve law enforcement officer, search and rescue personnel, emergency medical technician, ambulance personnel, park ranger or public utilities worker. Additionally, these employees cannot receive any compensation in excess of $500 per month.
» Employees who are covered under the Tier 2 Defined Contribution plan.
If a member is employed under any of the above exclusions, please contact our office at 801-366-7770.
» All post-retired members must be reported on your URS contribution file, regardless of their full-time/part-time status. Both retirement and gross salaries must be included in their records.
» The employer may contribute into the member’s savings plan, up to the normal cost for the fund. The normal cost contribution is optional but, if paid, must be paid to a qualified plan administered by our office.
If it is discovered that a URS retiree or participating employer failed to report reemployment in violation of Title 49, “…the retiree, participating employer, or both, who are found to be responsible for the failure to report, are liable to the office for the amount of any overpayment resulting from the violation.” Utah Code Ann. § 49-11-1207(2). To remain in compliance with post-retirement rules, it is critical to certify all employees who are hired within your organization in a timely manner. Online resources exist to assist you with certifying post-retirees, including an Independent Contractor Management Center for such cases.
1. If you are planning to hire a URS retiree, direct the employee to contact our Retirement Benefits Department at 801-366-7770 or 800-695-4877 before beginning employment. They will be asked to complete and file a Retirement Reemployment (Form RTRT-27A) with our office before entering reemployment. This form is on our website.
2. If the URS retiree is receiving withdrawals from their URS 401k or 457(b) plan, and they are not of eligible age for withdrawals, their ongoing payment will be cancelled until they terminate or reach eligible age. Direct the URS retiree to contact our Savings Plans Department at 801-366-7720 or 800-688-4015.
3. Access our online enrollment process to receive status information identifying retirees and their retirement dates.
4. Complete the online certification process and follow guidelines below to determine salary limitations and contributions, if any.
The employer may NOT contribute to any type of retirement-related savings plan with any savings plan provider on behalf of the post-retired employee. An HSA plan does not qualify as a retirement-related savings plan.