If you plan to work after retirement in a PERA-covered position, it is important to know that federal and state laws may significantly impact your retirement benefits if you are under full Social Security Administration (SSA) retirement age.
Earnings Limits
If you are collecting a PERA pension benefit and return to work in a position covered by a PERA pension plan, you may be subject to an earnings limitation. Once you reach the earnings limit, your monthly pension benefit will be reduced or stopped for the remainder of that calendar year.
You are not subject to earning limits if you returned to work in a position with:
Private industry
Federal government
State government in Minnesota or other states
For more information on earnings limits, see the Working After Retirement publication. The brochure also provides the earnings limits for the current year.
Returning to Work
Here are some important items to consider before seeking re-employment:
If you return to work in public employment, you must wait at least 30 days after your retirement date to be re-employed in a PERA-covered position or other Minnesota public employment.
If you return to a PERA-covered position, no retirement deductions will be taken from your salary.
Remember, only income from a PERA-covered job will impact your pension. Income earned through other public employment, private-sector employment, self-employment, investments, and elected service is not considered earnings for PERA purposes.
