SPP 206: Postretirement Employment

To define the university’s policy on postretirement employment

Age Discrimination in Employment Act and amendments, 1986

Arizona Revised Statutes §§ 38–781.15; 38–759.95 as amended

University policy

Retired classified, service professional, and administrative employees

Retired university employees who are receiving a benefit from the Public Safety Personnel Retirement System may be reemployed in a non-police officer position if:

1. their reemployment is to the university’s advantage
2. the appropriate provost, vice president, or designee approves the reemployment

   and

3. Human Resources (HR) determines an appropriate title and salary rate based on the job to be performed.

Retired university employees who are receiving a benefit from the Arizona State Retirement System (ASRS) or Optional Retirement Plan (ORP) may be reemployed if:

1. their reemployment is to the university’s advantage
2. the appropriate provost, vice president, or designee approves the reemployment

   and

3. HR determines an appropriate salary rate based on the job to be performed, if different from the previously held job.

Under ORP, any oral, written, or expressed agreement to return to work made before retirement is a void of the retirement itself.

Retirees Receiving Normal Retirement Who Are Reemployed

Retirees who have reached normal retirement are encouraged to review reemployment regulations with ASRS or HR prior to return to work. Normal retirement for ASRS is attaining age 65, age 62 with ten or more years of service, or having 80 points (a combination of age and years of service). Normal retirement for ORP is attaining age 65.

Retirees Receiving Early Retirement Who Are Reemployed

These employees must have a break in service of 60 days with no written or implied agreement at the time of retirement to return to work before being reemployed by an ASRS employer. If the employee meets the break-in-service criterion, the retiree can be reemployed by ASU. If the break-in-service criterion is not met, the employee is not considered terminated and is not eligible for a retirement benefit.

Early retirement for ASRS is age 50 with five years of ASRS contribution. Early retirement for ORP is any age less than age 65.

ASRS Retirees Who Are Reemployed

Retirees who are reemployed in a 49 percent (FTE) or less position may continue to receive a retirement benefit.

Retirees who are reemployed to work 20 or more hours per week (50 percent FTE) or more for any 20 weeks during a fiscal year (includes all weeks worked in a fiscal year [FY] prior to actual retirement. Example: Employee works 100 percent FTE and retires January 30. Employee has exceeded the 20 weeks of 20 hours in the current FY, and all income in the current FY is subject to retirement withholding) will:

1. have their retirement benefits suspended

   and

2. be required to begin making retirement contributions upon reemployment with the university.

   Note:

   A member who has been retired for 12 months and does not meet the conditions for ASRS active membership may return to work or continue to work and receive pension benefits. The member must notify the ASRS and his or her employer in writing of the intent to work. The member must not have retirement contributions withheld from his or her pay and must not accrue additional credited service or limited benefits. This provision is in effect until June 30, 2003.

A retiree who meets normal retirement guidelines may return to full-time (50 percent or more FTE) employment with an ASRS employer, provided that he or she has been terminated for 12 months.

ORP Retirees Who Are Reemployed

Retirees who are reemployed in a 49 percent (FTE) or less position may continue to receive a retirement benefit.

Retirees who are reemployed to work 20 hours per week (50 percent FTE) or more for any 20 weeks during a fiscal year (includes all weeks worked in a FY prior to actual retirement. Example: Employee works 50 percent FTE and retires May 15. Employee has exceeded the 20 weeks of 20 hours in the current FY, and all income in the current FY is subject to retirement withholding) will be required to begin making retirement contributions to ASRS upon reemployment with the university.

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