Reemployment After Retirement


Reemployment after Retirement

When you retire and begin receiving retirement benefits, your intention should be to permanently retire from employment with the State or participating governmental employer*. Under no circumstances should your decision to retire be conditioned upon an offer of reemployment, and in fact, no offers of reemployment should be discussed by you and your employer prior to your retirement. Such a pre-existing reemployment agreement would signify that there was no intention on your part to retire.

However, if after your retirement you consider reemployment with an employer that participates in the Maryland State Retirement and Pension System (SRPS), you need to be aware of two important issues. The first issue deals with Internal Revenue Service (IRS) requirements regarding reemployment, while the second issue deals with Maryland retirement law regarding reemployment.


Internal Revenue Service on Reemployment

There can be significant consequences to you and the SRPS if you retire before the normal retirement age of your plan and/or before age 59 ½, and are reemployed with the same employer without a bona fide separation of service. Please note that all units of Maryland state government, including the University System of Maryland, are considered one employer.


Maryland Retirement Law on Reemployment

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accepting employment with any participating employer.* This rule applies even if you retired from an employer that has withdrawn from the SRPS.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.