About Post-Retirement Work
Are you thinking about working as a part-time teacher during retirement? Here’s what you need to know about working after you begin receiving pension benefits.
Normally when a retired member returns to work in a position covered by TRA they are subject to an earnings limitation of $46,000. If the retiree earns more than the limitation amount in a fiscal year, then, the following calendar year, a portion of their pension is withheld and deposited into an Earnings Limitation Savings Account (ELSA).
The 2022 legislative session suspended the $46,000 earnings limitation for retirees returning to Pre-K-12 positions for salary earned during fiscal years 2022, 2023, and 2024. No amounts will be withheld from reemployed retiree benefits for Pre-K-12 positions and deposited in an ELSA for calendar years 2023, 2024, and 2025.
The temporary suspension of the earnings limitation does not apply to retirees returning to Minnesota State positions. Both the $46,000 earnings limitation and the $62,000 earnings limitation for members approved for the annuitant employment programs will continue to be enforced. The earnings limitation is applied on a fiscal year basis (July 1 to June 30).
For employees not affected by the 2022 legislation, if you are under Social Security’s normal retirement age and retired for only part of the year, the earnings limitation amount will be prorated. The earnings limitation does not apply once you reach Social Security’s normal retirement age or return to work in a position not covered by TRA.
If you earn over the limit, $1 in benefits will be deducted/offset from your pension for each $2 of earnings above the limit. The offset amounts are redirected to a separate ELSA. No interest is earned on account balances. You may apply for a refund of your ELSA account at any age if it has been at least one year after the last amount was redirected to your ELSA account. You may receive direct payment of your refund or have all or a portion of your ELSA refund rolled over to a traditional IRA or an eligible employer plan. More about post-retirement work.