What to Expect
Your allowance will be paid monthly on the last business day of each month. Your first payment may not occur until a month or more after your retirement.
We will send you a 1099R federal tax form each January. If you began work after 1988, generally all of your allowance is taxable, except for any additional contributions on a make-up or buyback. If you contributed funds prior to 1988, a small portion of your retirement allowance will bedesignated as nontaxable each year until your nontaxable portion is exhausted under the IRS’ Simplified General Rule.
Working After Retirement
You may continue to work after retirement however as a public sector retiree, you will have limits on how much you can earn in the public sector. You are not permitted to work more than 960 hours in any calendar year. Additionally, your earnings, when added to your retirement allowance, cannot exceed the current salary of the position from which you have retired. After the first full calendar year of receiving a retirement allowance, you are permitted to earn an additional $15,000 over that amount. For example, if you retired on June 30, 2020, you are not entitled to the additional $15,000 in public sector earnings until 2022. There are no limits on employment in the private sector after retirement unless you are receiving a disability benefit.
The Retirement Board may grant up to 3% on the first $13,000 of a retirees’ allowance for an annual cost-of-living-adjustment. This allows for a potential maximum of $390 in any year. To qualify, you must have been receiving a retirement allowance on June 30th or earlier of the prior year.