Re-employment after retirement

If you return to work in a position covered by an MSRS retirement plan, you may be subject to an earnings limitation.  Once you reach the earnings limit, your monthly retirement benefit will stop for the remainder of that calendar year.

You are not subject to an earnings limitation if you returned to work in a position with:

  • Private industry

  • Federal or local government

  • State government other than Minnesota


Important information to consider before seeking re-employment

  • If you return to work for the State of Minnesota, you must wait at least 30 days after your retirement date to be re-employed in an position MSRS-covered position.

  • If you return to a position covered by an MSRS retirement plan, no retirement deductions will be taken from your salary.

  • Notify MSRS if you return to state employment and when you end that employment.

Re-employed retiree earnings limits 

  • If you are under the age full retirement age for Social Security benefits, the calendar year maximum earnings limit is $17,640 for 2019. 

  • If you reach full retirement age for Social Security benefits during the calendar year, the limit on earnings for the months prior to full retirement age is $46,920 for 2019.

  • Beginning the month you reach full retirement Social Security retirement age, there is no longer an earnings limit.


Social Security full retirement age

Year of Birth

Full Retirement Age

1954 or before

66

1955

66 and 2 months

1956

66 and 4 months

1957

66 and 6 months

1958

66 and 8 months

1959

66 and 10 months

1960 or later

67

 

If you exceed the maximum earnings limits


If you are re-employed by the State of Minnesota and exceed the earnings limit, MSRS will stop your monthly benefit payment for the remainder of the calendar year (unless you terminate before that time). The suspended benefit payments will be held for you.

Monthly retirement benefits will resume at the beginning of the following calendar year. However, if you terminate state employment you may notify MSRS to resume your monthly retirement benefit prior to the beginning of the following calendar year.

After termination of re-employment, you may request that your suspended payments be paid to you or rolled to another qualified retirement plan. Payment will be made one year from the date the last benefit payment was withheld if you are under your full retirement age. If you are at or beyond full retirement age, you may request immediate reimbursement by contacting MSRS.