HR45 Post-Retirement Appointments

POLICY'S INITIAL DATE: November 16, 1962

THIS VERSION EFFECTIVE: November 13, 2023

Contents:

• Purpose
• Definitions
• University Need
• Length of Appointment
• State Employees' Retirement System (SERS)
• Public School Employees' Retirement System (PSERS)
• Penn State Alternate Retirement Plan (TIAA)

PURPOSE:

To establish parameters around re-employment of University retirees. 

DEFINITIONS:

State Employees' Retirement System (SERS) Participant: Any individual enrolled in or receiving a pension or retirement income from the State Employees' Retirement System.

Public School Employees' Retirement System (PSERS) Participant: Any individual enrolled in or receiving a pension or retirement income from the Public School Employees' Retirement System.

Penn State Alternate Retirement Plan Participant: Any individual enrolled in or receiving a retirement income from the Penn State Alternate Retirement Plan (TIAA). 

UNIVERSITY NEED:

A post-retirement appointment may be considered under the following circumstances, and may not be used for succession planning:

• The University requires specialized skills and institutional knowledge of the retiree.
• The hiring department anticipates a prolonged process for hiring a replacement retiree. 
• An emergent situation that causes serious impairment of service to the public. 
• The retiree is enrolled in the Penn State Alternate Retirement Plan (TIAA) and is seeking part-time employment, or the retiree is enrolled in PSERS and is seeking part-time employment extra-curricular capacity. 

LENGTH OF APPOINTMENT:

Post-retirement appointments may be approved for up to 12-month periods for SERS and PSERS participants receiving benefits. A separate application is required to request additional time periods. There is no limit to the length of post-retirements for TIAA participants. 

STATE EMPLOYEES' RETIREMENT SYSTEM:

Under Pennsylvania law, a SERS annuitant may not be employed by the University, either full-or part-time, and continue to receive annuity payments from the State Employees' Retirement System, except under the following provisions: 

1. An emergency situation that causes serious impairment of service to the public. 
2. The participant must be paid on an hourly basis and the period of such employment may not exceed an aggregate of ninety-five (95) working days in one calendar year. Any amount of the time worked less than one-half a day shall be counted as one-half a day for the purposes of calculating time worked; time worked in excess of one-half day shall be counted as a full day.
3. The wages received shall not be considered compensation for retirement purposes. The service performed will not be considered creditable service, and, as such, no SERS contributions will be withheld.
4. The individual must be advised in writing of these conditions prior to accepting the post-retirement appointment.
5. Any University retiree benefits in effect prior to post-retirement appointment shall continue.

In special circumstances that permit the individual to be retained as an independent contractor, see IRS regulations. 

In special circumstances a SERS participant may work for the University, either part- or full-time, through a temporary agency for a maximum of six (6) months. 

In all cases, the hiring unit must submit an application to Penn State Benefits for consideration - all requests will be considered on a case-by-case basis. 

When the retiree is age 60 or older, one pay period must have elapsed following termination of or retirement from full-time employment prior to the beginning of a post-retirement appointment. If the retiree is under the age 60, one year must have elapsed following termination of or retirement from full-time employment prior to the beginning of a post-retirement appointment. 

Employment other than under these specific exceptions will result in termination of SERS annuity payments for the period of employment. 

PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM

Under Pennsylvania law, a PSERS annuitant may not be employed by the University, either full-time or part-time, and continue to receive annuity payments from the Public School Employees' Retirement System except under the following provisions: 

1. An emergency exists that creates a serious impairment of service to the public. 
2. There is a shortage of subject-certified teachers (emergency return to service). 
3. If employed part-time in an extra-curricular capacity, duties are performed primarily outside the regular instructional hours and not part of the mandated curriculum.
4. If employed full-time and enrolled in an alternate approved pension plan offered by the University.

In special circumstances that permit the individual to be retained as an independent contract, see IRS regulations.

In all cases, any post retirement appointment must be approved by PSERS. 

Ninety (90) days must have elapsed following termination of or retirement from full-time employment prior to a post-retirement appointment. In the event of an emergency return to service of a PSERS annuitant, they must be paid on an hourly basis and the period of such employment may not exceed beyond the length of the school year (fall to summer) in which the emergency or shortage occurs. The wages received shall not be considered compensation for retirement purposes. The service performed will not be considered creditable service, and, as such, no PSERS contributions will be withheld. Any University retiree benefit in effect prior to post-retirement appointment shall continue.

The individual must be advised in writing of these conditions prior to accepting the post-retirement appointment. 

In addition, PSERS annuitants hired in a part-time extra-curricular (for example, activities such as ushering at Bryce Jordan Center events or other sporting events) capacity, will need to sign a PSERS waiver. 

PENN STATE ALTERNATE RETIREMENT PLAN (TIAA):

A Penn State Altnerate Retirement Plan (TIAA) participant receiving benefits may be employed by the University in a full- or part-time position. 

Full-time Appointments: 

Units must notify Penn State Benefits prior to the start of reemployment for any Penn State Alternate Retirement Plan (TIAA) participant. 

Part-time Appointments: 

Part-time appointments for Penn State Alternate Retirement (TIAA) participants receiving benefits require no prior approval from Penn State Benefits nor an application to be completed but are subject to the existing process for hiring part-time employees. 

Wages received on post-retirement appointments shall not be considered compensation for retirement purposes. Any University retiree benefits in effect prior to the post-retirement appointment shall continue. 

Cross References:

Post Retirement Appointment Application 

HR29 - Voluntary Phased Retirement Program

HR54 - Continuation of Group Insurance After Age 60, Age 65, and After Retirement or Death

RAG09 - Processing Sponsored Projects Involving Retired Faculty Participation