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SB 1049 and HB 2296 Changes: Work After Retirement

Senate Bill (SB) 1049 (2019) and House Bill (HB) 2296 (2023) made changes to PERS working after retirement rules.

The following information may not apply to all members and may not reflect your individual situation. Read on if you’re a PERS retiree and want to work for a PERS-participating employer, of if you’re already working as a PERS retiree and want to know about the changes these bills made.

Overview

SB 1049 simplifies the rules for working after retirement. Starting January 1, 2020, there are no limitations*** on the number of hours most retirees can work for a PERS-participating employer and still receive their PERS pension benefit. These rules will now continue through December 31, 2034, based on HB 2296.

PERS retiree means a Tier One, Tier Two, or Oregon Public Service Retirement Plan (OPSRP) member who has officially retired from PERS and is receiving their PERS pension benefit. This includes retirees who took a lump-sum pension benefit.

Note that SB 1049 generally lifts the statutory hour limitations*** if you are employed by a PERS-participating employer as a PERS retiree and retired at “quot;normal retirement age.”;

PERS is not involved in employment decisions between employers and employees. Your employer may have other limitations on your work hours. Consult with your employer’s human resources office about any polices related to working after retirement.

From January 1, 2020, through December 31, 2034, most*** retirees may work for a PERS-participating employer for an unlimited number of hours while continuing to receive their pension benefit. These rules will now continue through December 31, 2034, based on HB 2296. Whether you are hired by a PERS-participating employer as a PERS retiree or not is between you and your employer. Read information for employers.

If you are employed as a PERS retiree for a PERS-participating employer in 2020-2034 (whether hired before, or during that time), you:

  • May continue to receive your PERS retirement benefits (but not accrue any new retirement benefits);
  • Receive wages from your employer; and
  • Have no limitations*** to the number of hours you can work. Restrictions may apply if you retired early from PERS, or if you are receiving Social Security retirement benefits and have not reached “full retirement age” under Social Security. Your employer may have other limitations (see below).​

View these flowcharts to see if you can work unlimited hours if you are employed as a retiree:

The existing, pre-SB 1049 limitations and exceptions continue to apply to early retirees that do not have a six-month break.

  • If you are a Tier One/Tier Two early retiree without a six-month break, you may be employed by a PERS-participating employer and continue to receive your retirement benefits as long as you do not work 1,040 hours or more in a calendar year. Learn more and see exceptions to this rule.
  • If you are an OPSRP early retiree without a six-month break, you may be employed by a PERS-participating employer and continue to receive your retirement benefits as long as you do not work 600 hours or more in a calendar year. Learn more.
​

Important notes:

SB 1049 does not impact disability retirements.

***You must have retired at or after “normal retirement age” (Tier One/Tier Two, OPSRP) or with 30 years of service (25 years for most Police and Fire members) to be eligible for unlimited retiree hours under SB 1049.

If you retire/retired earlier than normal retirement age, you must have a complete break in all PERS-participating employment for at least six months in order to be eligible for unlimited retiree hours under SB 1049. Otherwise, the existing Tier One/Tier Two and OPSRP limits of working less than 1,040 and 600 hours, respectively, apply.

If you are receiving Social Security benefits and have not reached “full retirement age” (FRA) under Social Security, the Social Security Administration and PERS have additional limitations on your employment. If you have not reached FRA, you may need to limit your hours to stay within the income allowed under the annual Social Security income limits.

Your employer may have other limitations on the number of hours you can work. Any decision on terms of employment is between you and your employer.

In compliance with the Americans with Disabilities Act, PERS will provide documents on this page in an alternate format upon request. To request this, contact PERS at 888-320-7377 or TTY 503-603-7766.