Reemployment

• Membership benefits are not available during reemployment
• Reemployed retirees do not accrue additional service credit
• Service credit cannot be purchased
• Disability benefits are not available to reemployed retirees
• Time worked as a reemployed retiree cannot be used to qualify for SERS’ health care if you did not previously qualify

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.

Key Rules

• There is no limit on the number of days you can work
• There is no limit on how much you can earn
• The only restriction is when you can return to work

Exception for Multiple Positions

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.

Contributions and Annuity

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
• This benefit will be paid as a single life annuity
• You may choose to receive it as:
  • 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.

Individuals Who Are Affected

• Under age 65 and not yet eligible for Medicare
• Eligible for Medicare but not enrolled in Part B

Individuals Who Are Not Affected

• Enrolled in Medicare Part A and Part B
• Enrolled in Medicare Part B only

When Health Care Eligibility Is Lost

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

Regaining SERS Eligibility

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 from the reemployment. which consists of the following:

• Your employee contributions
• A portion of employer contributions
• 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.

If You Are Age 65 or Older

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 to the amount
• 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 Are Under Age 65

If you take your funds immediately:

• You will receive only a return of your 10% employee contributions
• Payment is 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:

1. Spouse
2. If no spouse, your children share and share alike
3. If none of the above, your parents share and share alike
4. If none of the above, your estate

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
• Refunds of contributions

Key points:

• If your employee contributions are tax-deferred, the entire lump-sum payment is taxable
• For any portion of the payment that has not been previously taxed, the withholding rate will be 20%, unless rolled over to an IRA
• Monthly annuities are withheld based on being married with three exemptions
• You may adjust withholding or elect not to have taxes withheld

Additional tax information is provided at the time payment is issued.