After retiring, some individuals choose to return to work to supplement income, pursue new interests, or stay active. As a retiree of an Ohio public pension system, the type of job you take after retirement and when you return to work can affect your SERS pension and health care coverage.
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Your original pension is not affected during reemployment, unless you return to work in an Ohio public sector position within two months of your retirement date. If this happens, you will only forfeit your pension payments for the two-month waiting period.
Returning to work in a private sector job covered by Social Security does not affect your SERS pension. However, private sector employment could affect your SERS health care eligibility. Please review the How Reemployment Affects Health Care Coverage section.
If you return to work in a position covered by SERS, OPERS, STRS, Ohio Police & Fire Pension Fund, or Ohio Highway Patrol Retirement System, you must wait two months from your effective retirement date before reemployment.
If you return to work in an Ohio public job within two months of your retirement date, you will forfeit your pension for that period of time. The only exception is if you held multiple positions prior to retirement, you may continue working in the lesser-paying position(s) without forfeiting two months of pension payments.
If you are reemployed in a SERS-covered position, you must contribute to SERS just as you did before retirement. Because your original pension amount is set, your new contributions will create a separate benefit paid as a single life annuity. You may choose a one-time lump-sum payment or fixed monthly payments for life. There are no cost-of-living adjustments on this annuity.
Reemployment may temporarily affect your eligibility for SERS health care coverage.
You will lose SERS health care eligibility when you are eligible for medical and prescription coverage through your new employer, or you are not eligible for coverage but employees in comparable positions are eligible. Coverage offered to employees in comparable positions must be at the same cost as full-time employees.
You will not lose SERS eligibility if you do not have access to employer coverage, or costs for employees in comparable positions are more than what full-time employees pay.
Once reemployment ends, your SERS health care eligibility is restored. You have 31 days after employer coverage ends to enroll in SERS coverage.
When reemployment ends, you are eligible to receive a portion of the retirement contributions made during that period. You will earn an annuity consisting of your employee contributions, a portion of employer contributions, and interest.
Interest is paid until the later of your last date of service or the date you reach age 65. These factors are subject to change by the SERS Retirement Board.
Please note: The annuity will be paid by the retirement system that covers your reemployment.
You will receive your benefit as a single life annuity. You can choose a one-time, lump-sum payment or monthly payments (if the monthly amount exceeds $25).
A monthly annuity is paid for life and remains the same for the length of the payment. It does not include COLA or other adjustments, and is paid only to you with no survivor plans available.
If you die before receiving what would have been the full value of the lump-sum payment, the remaining balance is paid to your beneficiary in a single payment.
If you take your funds immediately, you will receive only a return of your 10% employee contributions, issued as a single lump-sum.
If you die before receiving an annuity or refund of contributions, a lump-sum payment is available to your beneficiary.
If no beneficiary is designated, law specifies payments are made in the following order:
If this order does not reflect your wishes, please request a Designation of Beneficiary Reemployed Annuity Account Form from SERS.
You can earn more than one annuity over time. However, only one additional annuity or lump-sum payment may be applied for or received every 12 months.
Example: If you quit your job and receive an annuity in June, and return to work again, no additional payment can be paid until the following July.
SERS is required to withhold federal income taxes from lump-sum annuity payments and refunds of contributions.
Additional tax information is provided at the time payment is issued.
We’re glad you’re a member of SERS. If you have questions about your retirement account or benefits, we are here to help.
