After TPAF retirement, can you go back to work?

Rule by rule

Private, federal or other-state work

Working for private industry, the federal government or another state's government doesn't affect your TPAF benefits (disability retirees have an earnings test). Guidebook p. 35; Fact Sheet #86 p. 1

Former employer within 180 days

Returning to your former employer within 180 days of retirement - including part-time, as a contractor or as a volunteer - is not a bona fide severance. You must repay all benefits received and may be re-enrolled. Any pre-arranged return is never bona fide. 10-month employees retiring July 1 or Aug. 1 count from the start of the next school year in September. Fact Sheet #86 pp. 1-3; Guidebook pp. 32, 34

Different public employer

Wait until at least 30 days after the Board's approval notice or 30 days after the retirement date, whichever is later, before agreeing to work for another employer in a position not covered by the TPAF. Fact Sheet #86 p. 5

TPAF-covered position

A retiree (other than disability) who takes a position that makes them TPAF-eligible must re-enroll; the allowance and death benefits from the first membership are canceled until they retire again. On second retirement the old allowance is restored, plus a new allowance for the later service under the new tier, capped so the total proportion of final compensation isn't more than if they had stayed in service. N.J.S.A. 18A:66-53.2(a); Employers' Manual p. 5; Fact Sheet #86 pp. 5-6

Exception: superintendents, administrators, school nurses

Certificated superintendents and administrators (critical need at the Department of Education, or any board of education) and certified school nurses can work on one-year contracts (renewable once, two years per board unless the Commissioner approves more) without re-enrolling. With the same employer, not within 120 days of retirement (180 days for a school nurse); the 180-day IRS rule still applies for tax purposes. N.J.S.A. 18A:66-53.2(b); Fact Sheet #86 pp. 3-4

Exception: coaches

A (non-disability) retiree may coach athletics for the former employer if the job starts after the retirement is due and payable, they had reached normal retirement age when they retired, and pay is under $15,000 a year. N.J.S.A. 18A:66-53.2(c); Fact Sheet #86 p. 4

Expired special laws

Retired teachers and professional staff who returned under P.L.2021, c.408 (extended by P.L.2023, c.121) in the 2021-22 through 2023-24 school years could have one-year contracts, renewable once, up to two years per board. Fact Sheet #86 p. 4; Employers' Manual p. 5

Audits

The NJDPB compares Department of Labor records with retiree payroll and targets retirees working more than 25 hours a week or earning about what they earned before retiring. Fact Sheet #86 p. 5

Before you retire

A retirement becomes due and payable after a break in employment without pay of at least 30 days following the retirement date, or 30 days after TPAF Board approval, whichever is later. After that the retirement date, option and option beneficiary can't be changed. 10-month employees retiring July 1 or August 1 count the 30 days from the start of the next school year in September. Guidebook p. 32, Due and Payable; p. 29, Optional Settlements at Retirement

Collecting Social Security too? It has its own earnings test (see Social Security). For health coverage once you've retired, see retiree health.

What the NJDPB says

• Work for a private company, the federal government or another state doesn't affect your TPAF pension (disability retirees have an earnings test).Guidebook p. 35; Fact Sheet #86 p. 1
• Going back to your former employer within 180 days of retiring, even part-time, as a contractor or as a volunteer, voids the retirement: you repay benefits and may be re-enrolled. A pre-arranged return is never allowed.Fact Sheet #86 pp. 1-3
• If you take any position that makes you eligible for the TPAF again, you must re-enroll and your pension stops until you retire again.N.J.S.A. 18A:66-53.2(a); Employers' Manual p. 5
• Exceptions: retired certificated superintendents and administrators, and certified school nurses, can work under one-year contracts (renewable once per board) without re-enrolling; coaches can work for their former district for under $15,000 a year if they retired at normal retirement age.N.J.S.A. 18A:66-53.2(b), (c); Fact Sheet #86 pp. 3-4

Questions

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