PERAC Memo #11 - 2015: New Post-Retirement Limits on Employment for Disability Retirees

New Post-Retirement Limits on Employment for Disability Retirees

Summary

This memo announces that, under Chapter 492 of the Acts of 2014, disability retirees may now earn an additional $15,000 per calendar year (from any public or private source) above the standard earnings cap—the difference between the current salary of the position from which they retired and their retirement allowance—effective for calendar year 2015 and reflected on the 2015 Annual Statement of Earned Income filed in 2016. Note that the 960-hour public-sector work limit remains unchanged. Boards should use the attached (interactive, web-based) Earned Income Worksheet to help disability retirees calculate their allowable annual earnings under the new limit.

Full Text

MEMORANDUM #11, 2015 McCarthy M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: New Post-Retirement Limits on Employment for Disability Retirees DATE: April 23, 2015 In accordance with Chapter 492 of the Acts of 2014, public employees receiving a disability pension may now earn an additional $15,000 during a calendar year. This calculation will be based on total earnings without regard to the source of the earnings, public or private. The additional earnings will be allowable for the calendar year that began on January 1, 2015 and will be reported on the member’s Annual Statement of Earned Income for 2015 (to be filed in the Spring of 2016). Therefore, beginning in calendar year 2015, a disabled retiree will be allowed earnings of up to $15,000 above the difference in the salary currently being paid for the position from which he/she retired and the member’s retirement allowance. Please note, the new law did not increase the number of hours that public retirees are allowed to work in the public sector. No retiree is allowed to work in excess of 960 hours, in the aggregate from all public sector employment, during a calendar year. The attached Earned Income Worksheet may be used and provided to members to determine how much they may earn during a calendar year. This is an interactive form posted on PERAC’s website and can be accessed at Attachment