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.
TRA retirees may return to work with a TRA-covered employer and earn up to the $46,000 earnings limit without deferring the receipt of a portion of their TRA pension benefit. The earnings limitation is applied on a fiscal year basis (July 1 to June 30).
Minnesota State participants in the annuitant employment program have a $62,000 earnings limit while on the program.
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 earnings limitation savings account (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.