Current Pension Topics
Post Retirement Earnings: Best to Know Your Limits

By JOEL FRANK

I have recently taken calls from two retired Teachers who got caught up in taking jobs in the public sector for too much money. Many apparently think they will not be caught. But if you are, you will pay back the money you should not have earned (excess earnings) either to your employer or to the retirement system. Do not embarrass yourself by working a portion of the year for nothing. A word to the wise should be sufficient. Following are some Q. & A. on the topic from the Web site of the Teachers' Retirement System of the City of New York.

Mr. Frank is a fee-only Retirement Financial Planner and a retired city high school Teacher of Accounting. He can be reached by telephone at (732) 536-9472, or via e-mail at rollover@optonline.net.

What does a Section 212 Waiver cover?

Filing a Section 212 Waiver ("Certification of Employment Under Section 212" (code IA8)) allows service retirees under age 65 to return to public employment with New York State or any of its political subdivisions and earn up to a designated limit each calendar year without jeopardizing their retirement allowance. The 2007 earnings limit is $30,000. (This limit will remain the same unless the New York State Legislature changes it.) For more information, please see the Earnings After Retirement brochure (code 9.3).

What does a Section 211 Waiver cover?

If service retirees under age 65 anticipate that they will exceed the maximum earnings allowed under a Section 212 Waiver, they must file a Section 211 Waiver with their employer (not TRS) to continue receiving a retirement allowance subject to certain restrictions. Retirees are encouraged to contact TRS to request an estimate of their earnings limit prior to filing a Section 211 Waiver with their employer.

For more information, please see the Earnings After Retirement brochure (code 9.3).

What is the maximum that I can earn after retirement?

That amount differs under certain situations. For example:

- There is no limit if you are at least age 65 or if you are working in any job other than public employment with New York State or its political subdivisions.

- If you are a service or a disability retiree working in public employment in New York State, the total of the pension portion of your retirement allowance plus your post-retirement earnings must be less than $1,800 annually.

- Service retirees may file a "Certification of Employment Under Section 212" (code IA8) with TRS and earn up to the designated annual limit: $30,000 in 2007. By filing a Section 211 Waiver with their employer, service retirees may be able to earn more than this amount. (Note that disability retirees are not eligible to file Section 212 or 211 Waivers.) Retirees are encouraged to request an estimate of their earnings limit from TRS prior to filing a Section 211 Waiver with their employer.

For more information, please see the Earnings After Retirement brochure (code 9.3).

What happens if I exceed the earnings limitation for a retiree?

If you exceed your earnings limit, you must repay the excess earnings to your employer or your retirement allowance would be suspended. If you are working under a Section 212 Waiver, the suspension would begin in the month that you exceed the limit, and it generally would continue for the rest of the calendar year. Under a Section 211 Waiver, the suspension would continue until the amount of your suspended retirement allowance equals your excess earnings. For more information, please see the Earnings After Retirement brochure (code 9.3).