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Retirement & re-employment with another gov't subdivision?

Guest Bearlee

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Guest Bearlee

There is a state retirement system (which covers most of the state and municipality entities).

If one retires from one part of the state government, and then is employed with another instrumentality of the state, do any suspension of benefits rules kick in?

Does it matter whether the new job is from a different hiring office?

Does it matter that the former and prospective job is under the same state retirement system?

I know ERISA § 203(a)(3)(B) and the Code § 411(a)(3)(B) are the analogs to the governmental situation. But do the rules for governmental entities track ERISA §203(a)(3)(B)(i) ("other than a multiemployer plan") or ERISA § 203(a)(3)(B)(ii) ("multiemployer plan")?

In other words, if a person retires from one instrumentality of the state on Friday, can she pick up and work for another instrumentality of the state on Monday, and still be retired from the former entity she worked for on Friday -- even though the retirement system is the same?

Does the "same trade or craft" rules apply like in the multiemployer context, or is disqualifying employment based on the retirement system itself? What way is disqualifying employment classified in the state government context?

I guess another analog would be -- if someone retired from the U.S. DOL on Friday and was eligible for retirement payments, would he still be considered retired if he picked up and worked for the IRS on Monday? They would still be part of the same system (FERS).

Any help would be appreciated, with any relevant authorities. Thank you, once again!


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