After you retire, you must wait at least 45 days before accepting employment with any participating employer.* This rule applies even if you retired from an employer that has withdrawn from the SRPS. Again, all units of Maryland State government, including the University System of Maryland, are considered to be one employer under these reemployment rules.  

Earnings Limitation

If you retire early as a member of the Employees’ or Teachers’ Systems and return to work for any participating employer, you will be subject to an earnings limitation for the first 12 months of retirement.

If you accept a service retirement, or if you accept an early retirement and have been retired more than 12 months, you will be subject to an earnings limitation if you return to work for the same employer.

In these types of employment, if your earnings in a calendar year exceed your earnings limit, your monthly retirement payment will be reduced one dollar for each dollar you earn in excess of the limit.

Exemptions from Earnings Limitation 

Service Retirement

There is, however, no earnings limit and your monthly retirement check will not be reduced if:

• You have been retired under a service or early retirement for at least five years. With the exception of a January 1 retirement date, the five year period begins January 1 of the year following the year of retirement.
• You have an average final compensation under $25,000 and you accept permanent, temporary or contractual employment.
• Special exemption for Health Care Practitioners: You are a retiree reemployed on a contractual basis by the Department of Health & Mental Hygiene as a health care practitioner in a state residential center, a chronic disease center, state facility, or a local health department. If retired early, you still have an earnings limitation for the first 12 months. Also, retirees hired by any participating employer would be subject to the 45 day wait for reemployment.
• Special exemption for Parole and Probation Employees: You are a retiree of the Employees’ Retirement or Employees’ Pension Systems and you are reemployed on a contractual basis for not more than four years as a parole and probation employee in a position with the Division of Parole and Probation in the Department of Public Safety and Correctional Services. If retired early, you still have an earnings limitation for the first 12 months. Also, retirees hired by any participating employer would be subject to the 45 day wait for reemployment.
• Special exemption for Correctional Officers: You are a retiree reemployed on a contractual basis by the Division of Corrections, the Division of Pretrial Detention and Services or Patuxent Institution in the Department of Public Safety and Correctional Services as a correctional officer in a correctional facility for not more than four years. Also, retirees hired by any participating employer would be subject to the 45 day wait for reemployment.
• Special exemption for Teachers and Principals: You are a retiree reemployed as a classroom teacher, substitute teacher or teacher mentor in a public school which meets certain specific requirements or for the Maryland School for the Deaf, and you are teaching in an area of critical shortage, a special education class for students with special needs, or a class for students with limited English proficiency.
• You are a retiree reemployed as principal in a public school which meets certain specific requirements. To qualify you must have been employed as a principal within five years of retirement or employed as a principal not more than 10 years before retirement and were employed in a position supervising principals in your last assignment prior to retirement.
  • Additional qualifications regarding satisfactory job performance prior to retirement and while working after retirement are also required for both rehired teachers and principals.
• Special exemption for State Police: You are a retiree of the State Police and accept permanent or contractual employment, unless you are reemployed on a contractual basis at the rank of Trooper First Class for more than four years.
• Other exceptions apply contact the Retirement Agency for more information.

If you retired early, you still have an earnings limitation for the first 12 months. Also, retirees hired by any participating employer would be subject to the 45 day wait for reemployment.

Prior to accepting work with a participating employer, SRPS retirees are required by law to notify the State Retirement Agency in writing of their anticipated earnings.

Disability Retirees

If you are retired on an Ordinary Disability retirement and return to work for a participating employer, you will be subject to an earnings limit until you reach normal retirement age. Members who retired with an average final compensation less than $25,000 are exempt from the earnings limit.

If you are retired on an Ordinary or Accidental Disability retirement and return to work for a participating employer, your monthly benefit may be suspended in certain circumstances.

Different rules apply for retired State Police and law enforcement officers.

* A participating employer is any employer that offers Maryland SRPS benefits to its employees.