The following terms are important when considering returning to work after retirement for a Colorado PERA employer. See the Working After Retirement booklet for more information.
Effective Month of Retirement
The first full calendar month following the final day of employment when the member becomes eligible for PERA retirement benefits.
For example, if a member’s last day of work is March 15, the effective month of retirement may begin no sooner than April 1. Any work performed by the retiree during the month of April will cause PERA to request documentation regarding the retiree’s employment status and their retirement benefit will be reduced by 5 percent per day worked. If a retiree works on the first day of the effective month of retirement, the retirement will be canceled until a valid termination has occurred.
Wages paid by a PERA employer to a current PERA retiree, including for work done as an independent contractor. These wages are subject to both employer and working retiree contributions.
Working After Retirement
Work performed for a PERA employer by someone currently receiving a PERA retirement benefit. Retirees returning to work for an affiliated employer must adhere to PERA’s working after retirement guidelines. Both employer and working retiree contributions are due on any salary paid.
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