The separation period
It starts on the later of your termination date or the date NPERS receives a valid distribution application. School Handbook pp. 4, 7-8, Reemployment; table on p. 8
| If you stop work and apply | Days | Work allowed during it |
|---|---|---|
| Both before May 1, 2026 | 180 | Up to 8 days a month of substitute or volunteer work, in total |
| Either on or after May 1, 2026 | 120 | None at all |
If either date is on or after May 1, 2026: 120-day separation period with no service of any kind (substitute, volunteer, TEAMMATES, vacant positions, independent contractor, temporary, or service for another organization providing similar service to NPERS School Plan employers). School Handbook pp. 4, 7-8, Reemployment; table on p. 8; Neb. Rev. Stat. §79-930(2) (as amended by LB 824, operative May 1, 2026); §79-902(45)
A member may ask the NPERS director to determine that the separation period has been met, with clear and convincing evidence received within 45 days after the later of separation or application receipt; appeal to the board within 30 days. Neb. Rev. Stat. §79-930(2)(c); LB 198 FAQ (May 2024) p. 3
The break and your benefit start date both depend on when you stop work and apply, so plan them together: see early retirement and your start date, and how your tier sets your COLA once you're retired.
It must be a real retirement
A refund or retirement benefit requires a bona fide termination: a genuine decision to leave, no plan, agreement or understanding (written, verbal or implied) to return to any NPERS School Plan employer, and no service during the separation period. Coaching is generally regular service (seasonal suspension does not end employment), so retiring with an intent to coach next season is a violation even if more than 120 days pass. A violation means repaying benefits with interest, plus missed contributions. School Handbook pp. 6, 9-11, Reemployment; Coaching & Termination of Employment; Termination Checklist
Allowed during the 120 days: a different business serving the school (e.g., pest control), or serving on an elected school board that meets the FAQ's three conditions. Private non-educational employers and parochial schools are not NPERS School Plan employers. Retirement News April 2026 p. 2, LB 824; LB 824 guidance (May 2026) p. 2
After the separation
After a bona fide termination you may return. If you meet membership rules you join as a new member, in the tier in effect on your return date, while your retirement benefit continues. You must notify NPERS of your return. School Handbook p. 12, Reemployment After Retirement
None of the sources sets an earnings limit for retirees who return after a bona fide separation. A retiree may work for the University of Nebraska, the State Colleges, a community college or another state agency without waiving benefits. Neb. Rev. Stat. §79-922(2)
For how your benefit is taxed, see taxes on your pension. To see the pension you'd be drawing, use the calculator.
From the sources
- If you stop working on or after May 1, 2026, or NPERS gets your application on or after that date, you must stay away 120 days from any NPERS School Plan employer with no work at all. That means no subbing, volunteering, TEAMMATES, contracting or temporary work. The 120 days start on the later of those two dates.School Handbook pp. 4, 7-8; Neb. Rev. Stat. §79-930(2)
- Under the old rule (both dates before May 1, 2026) the wait was 180 days, with up to 8 days a month of substitute or volunteer work allowed. A 180-day period starting April 30, 2026 ended October 27, 2026.School Handbook pp. 7-8
- Retirement must be a real separation. You can't have any agreement or understanding, even an informal one, to come back. Coaching counts as regular service, so retiring in May intending to coach basketball in November is a violation even though more than 120 days pass. Violations mean repaying benefits with interest.School Handbook pp. 9-11
- After a proper separation you can go back to a NPERS School Plan employer. Your pension keeps coming, and you join as a new member in the current tier. You must tell NPERS you've returned.School Handbook p. 12; Neb. Rev. Stat. §79-922
- The separation rule covers only NPERS School Plan employers. Working for private non-school employers or parochial schools is fine, and so is serving on an elected school board that meets NPERS's conditions.Retirement News April 2026 p. 2; LB 824 guidance (May 2026) p. 2
Questions
How long must I wait before working for a school again?
120 days with no work of any kind, if you stop working or NPERS gets your application on or after May 1, 2026. Before that date the rule was 180 days.
Can I substitute teach during the wait?
Not under the 120-day rule: no subbing, volunteering, coaching or contract work for any NPERS School Plan employer.
Can I coach next season?
Not if you plan it when you retire. Coaching is regular service, so retiring with an intent to coach is a violation even if more than 120 days pass.
Is there an earnings limit after that?
None of the sources sets one. Your pension keeps coming, and you join as a new member.
Source: Nebraska School Employees Retirement System Handbook, Revised 07/2026, pp. 4, 6, 7-8, 8, 9-11, 12. Also: LB 824 guidance (May 2026) pp. 1-2, 2; LB 198 FAQ (May 2024) pp. 1-3, 3; Retirement News April 2026 p. 2; Neb. Rev. Stat. §§ 79-902, 79-922, 79-930. Last reviewed .