Going back to work after a TRS of Kentucky retirement

• Retirees with 30 or more years can return to TRS-covered work and earn up to 75% of their last annual pay (daily rate); with fewer than 30 years, up to 65%. Retirees returning to a school district can always earn at least $200 a day.KRS 161.605(1), (2), (5)
• You must wait at least one year before returning full-time to the same employer, and three months before returning full-time elsewhere or part-time anywhere. No prearranged agreements; breaking these rules voids the retirement.KRS 161.605(6)
• Earning over the limit cuts your retirement allowance dollar for dollar.KRS 161.605(5)
• TRS 4 retirees can go back to work but do not earn a second TRS of Kentucky account. TRS 1-3 retirees who return contribute to a separate account.KRS 161.605(4), (9)(a); TRS 4 SPD p. 19
• You can instead waive your annuity and return full-time; after a full contract year your benefit is recalculated, rising no more than 10% per year worked.KRS 161.605(14)

All the rules

• Retired with 30 or more years: may return full-time, part-time or as a substitute and earn up to 75% of last annual compensation (daily rate). Retired on or before June 30, 2002: treated as 30 years. KRS 161.605(1)
• Retired with less than 30 years after June 30, 2002: up to 65% of last annual compensation (daily rate). KRS 161.605(2)
• The daily-rate base may be raised each July 1 by CPI-U, not more than 5% a year. Earnings over the limit reduce the retirement allowance dollar for dollar. A retiree returning to a local school district may earn at least $200 a day without reduction. KRS 161.605(5)
• Separation from service: at least one year before returning full-time to the same employer; at least three months before returning full-time to a different employer or part-time to any employer. Counted from the retirement date. No prearranged agreement. Violations void the retirement and require repayment with interest. KRS 161.605(6)
• An employer may employ full-time retirees up to 10% of its full-time active members (board may adjust; districts may request more from the Department of Education). KRS 161.605(3)
• TRS 1-3 retirees who return contribute to a separate second account that must vest and meet eligibility on its own; it does not add health, survivor, life insurance or the minimum benefit. KRS 161.605(4)(a)-(b)
• TRS 4 retirees may return to work but cannot contribute to or earn benefits in a second account. TRS 1-3 retirees who return contribute to a TRS 4 account. KRS 161.605(9)(a); TRS 4 SPD p. 19, Return to work
• Retirees reemployed by an employer in a state-administered retirement system must waive TRS of Kentucky medical insurance and take the employer's coverage. KRS 161.605(4)(c); 2027 KEHP fact sheet p. 1, Reemployment
• Critical shortage: local school districts may employ retirees in critical shortage areas without the earnings limit (up to 4 per district or 10% of full-time members, whichever is greater), subject to the separation rules. KRS 161.605(7)(a)
• University/community college part-time work: up to the equivalent of 12 teaching hours or 100 days of administrative/nonteaching work per fiscal year. KRS 161.605(10)
• Waiver: a retiree may waive the annuity and return full-time; after at least one contract year the annuity is recalculated, but it may rise no more than 10% per full contract year of waiver. KRS 161.605(14)
• The return-to-work rules (subsections (1)-(7)) are not part of the inviolable contract. KRS 161.605(9)(b)

KRS 161.605 was amended effective June 27, 2025 and July 15, 2026; the 2011 SPD's post-retirement section (pp. 46-51) predates these changes and is not used.

Going back to a job with health coverage? See retiree health.

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