Returning to work exceptions

A new state law allows retirees from PERS or PSERS to return to work up to 1,040 hours as a licensed nurse in a non-administrative position for a state agency or higher education institution, and still receive their pension benefit. (Chapter 99, Laws of 2023)

Who can take advantage of the new retiree return to work rules?

Members who retired under the following plans:

• Public Safety Employees Retirement System (PSERS)
• Public Employees Retirement System (PERS)

I’m thinking about retiring soon and then returning to work in a nursing position. Is there anything I should be aware of?

You must wait at least 30 consecutive days after your effective retirement date before returning to work and not have any pre-arranged agreement to return to work before retiring. (WAC-415-02-115).

I’m retired but I’m thinking about returning to work. Can I take advantage of this opportunity?

If you are returning to work as a licensed nurse in a non-administrative position, you can return to work at a:

• Washington state agency; or,
• Washington state higher education institution

What is a non-administrative position?

A non-administrative licensed nurse is someone whose primary responsibility is to provide nursing care.  This definition is expected to incorporated into  WAC 415-106-010(7) through the WAC development and review process by the end of October 2023.

How many hours am I allowed to work per year?

You can work up to 1,040 hours without affecting your pension benefit.

What happens if I work more than 1,040 hours in a calendar year?

If you work more than 1,040 hours your pension benefit will be suspended.

I retired from PERS using the 2008 Early Retirement Factor (ERF). Can I return to work as a Licensed Nurse?

Yes. To take advantage of this change, you can return to work for a Washington state agency or higher education institution as a licensed nurse in a non-administrative position. If you choose to work in any other position, even briefly, your benefit will be suspended for any months you are compensated.

I retired as a dual member from PERS and another system such as TRS or SERS. How will each of my benefits be affected if I return to work as a licensed nurse in a non-administrative position for a state agency or higher education institution?

Each benefit will have rules for that system applied independently. If you chose the 2008 ERF for both benefits, PERS would continue up to 1,040 hours in a calendar year and the other benefits could be suspended.

How long are the new rules in effect?

The new rules are in effect April 14, 2023 — July 1, 2026.

How are my hours counted?

All the hours you work as a licensed nurse in a non-administrative position for a state agency or higher education institution count toward your limit of 1,040 hours. Any hours worked outside of that scope will follow the laws of your pension plan.

Which hours count toward the annual limit?

All hours for which you receive compensation count toward the annual limit. This includes paid holidays or compensatory time, sick leave and annual leave taken in place of normal work hours. Sick leave or annual leave that is cashed out at the end of an employment period doesn’t count toward the limit. Cashed out compensatory time does count toward the limit.

What should I do when I return to work?

When you return to work as a licensed nurse in a non-administrative position for a state agency or higher education institution, you must tell your employer you are a retiree. If your employer doesn’t know you are a retiree, you could be reported incorrectly. This could cause your benefit to stop or require you to repay the funds.

Will working for more than one state agency and/or higher education institution at a time affect my benefit?

No. The 1,040 hour limit will be applied to the total hours you work as a licensed nurse in a non-administrative position. However, if you work as a nurse in one position and a non-nurse in the other position, you will be held to the lower limit of 867 for both.

Why is my retiree return to work limit listed as 867 hours in my online account and DRS communications when it should be 1,040?

DRS is currently updating member accounts to reflect the correct hourly limits for all current eligible retirees. If you think your limit is 1,040 please send an email to drs.rs3@www.drs.wa.gov with your member ID, name, pension plan, and the DRS employer name. We will research the issue and respond to you as soon as possible.

Position you are returning to	Employer you are returning to	Return-to-work wait period	Total hours when benefits stops
SERS eligible — non-administrative	School district	100 days	1,040 hours
TRS eligible — non-administrative	School district	100 days	1,040 hours
Nursing — non-administrative	State agency or higher education	30 days	1,040 hours

Position you are returning to	Employer you are returning to	Return-to-work wait period	Total hours when benefits stops
SERS eligible — non-administrative	School district	100 days	1,040 hours
TRS eligible — non-administrative	School district	100 days	1,040 hours
Nursing — non-administrative	State agency or higher education	30 days	1,040 hours

Position you are returning to	Employer you are returning to	Return-to-work wait period	Total hours when benefits stops
Nursing — non-administrative	State agency or higher education	30 days	1,040 hours

Position you are returning to	Employer you are returning to	Return-to-work wait period	Total hours when benefits stops
SERS — non-administrative	School district	30 calendar days	1,040 hours
TRS eligible — non-administrative	School district	30 calendar days	1,040 hours

Position you are returning to	Employer you are returning to	Return-to-work wait period	Total hours when benefits stops
SERS eligible — non-administrative	School district	30 days	1,040 hours
TRS eligible — non-administrative	School district	30 days	1,040 hours
TRS eligible — district superintendent or in-school administrator in a second-class school district, retired before Jan. 1, 2022	School district	30 days	1,040 hours

Position you are returning to	Employer you are returning to	Return-to-work wait period	Total hours when benefits stops
SERS eligible — non-administrative	School district	30 days	1,040 hours
TRS eligible — non-administrative	School district	30 days	1,040 hours
TRS eligible — district superintendent or in-school administrator in a second-class school district, retired before Jan. 1, 2022	School district	30 days	1,040 hours