The rule
A retiree who renders school service for a PA public school (including charter schools, community colleges, Penn State and state-owned universities) has the DB monthly benefit stopped and DC installment distributions suspended and is re-enrolled as an active member, unless an exception applies. A bona fide break in service is required first. Exceptions: shortage of personnel; emergency creating an increase in workload (both only for the school year or until the emergency ends, whichever is earlier); extracurricular contract (separate written contract with waiver, duties primarily outside instructional hours and not in the mandated curriculum; no time limit); independent contractor; third-party employer; alternate retirement plan. Private employment is unrestricted. PSERS Return to Service Exceptions (07-2020), pp. 1-8, citing 24 Pa.C.S. Sec. 8346(a)-(b) and Sec. 8102; Handbook p. 11, Employment After Retirement; Retired Member Handbook (3/2014), pp. 15-16
- If you go back to work for any Pennsylvania public school (including charter schools, community colleges and state universities), your pension stops and you become an active member again, unless an exception applies.PSERS Return to Service Exceptions (07-2020), p. 1; Handbook p. 11
- Exceptions: a shortage of personnel or an emergency that increases the workload (only for the school year or until the emergency ends), an extracurricular contract, independent contractor work, a third-party employer, or an alternate retirement plan. You must have a real break in service first. Private-sector work is unrestricted.PSERS Return to Service Exceptions (07-2020), pp. 1-8
If you go back without an exception
Returning outside an exception freezes the annuity: payments stop, the present value is frozen, contributions resume and service is earned. At re-retirement PSERS adds the annuity from the new service to the annuity from the frozen remaining present value. With 3+ years of new service you may instead 'eliminate' the frozen annuity by repaying (or accepting a debt for) all benefits received plus interest; PSERS uses the better method. T-C/T-D retirees return as T-D; T-E/T-F return to their elected class. Retired Member Handbook (3/2014), pp. 17-18, Frozen Annuity; Elimination of the Frozen Annuity For how the first benefit was figured, see the PSERS formula.
- Check with PSERSReturn without an exception and your annuity is 'frozen'. When you retire again PSERS adds a benefit for the new service to the frozen one, or, with 3 or more new years, lets you repay what you received and recombine the service, whichever is better.Retired Member Handbook (3/2014), pp. 17-18From the 2014 handbook, which predates Classes T-G/T-H.
PSERS's Retired Member Handbook is dated March 2014, before Classes T-G and T-H existed. Rules that appear only there may be out of date.
We label facts taken only from it.
Retired Member Handbook (3/2014), coverQuestions
Can I substitute teach after retiring from PSERS?
Only under an exception, such as a shortage of personnel or an emergency that increases the workload, and those last only for the school year or until the emergency ends. Otherwise your pension stops and you become an active member again. The sources give no earnings or day limit for the emergency exceptions beyond the school-year limit.
Can I work for a private employer after I retire?
Yes. PSERS's rules apply to work for Pennsylvania public schools. Private-sector work is unrestricted.
What is a frozen annuity?
Returning outside an exception freezes the annuity: payments stop, the present value is frozen, contributions resume and service is earned. At re-retirement PSERS adds the annuity from the new service to the annuity from the frozen remaining present value. With 3+ years of new service you may instead 'eliminate' the frozen annuity by repaying (or accepting a debt for) all benefits received plus interest; PSERS uses the better method. T-C/T-D retirees return as T-D; T-E/T-F return to their elected class.
Related: if you're still deciding when to leave, see what one more year adds and early retirement.
Source: PSERS Active Member Handbook, Current pa.gov edition (PDF revised Sept. 2023), p. 11. Also: PSERS Return to Service Exceptions (07-2020), pp. 1-8. Also: Retired Member Handbook (3/2014), pp. 15-18. Also: Elimination of the Frozen Annuity. Last reviewed .