Employer Update

What options are available to me when hiring a VRS retiree?

There are a few ways a retiree can return to work with a VRS-participating employer, including:

• Returning to active employment in a VRS-covered position.
• Returning to work in a non-covered position.
• Serving in critical shortage and other specified positions.

In all cases, various rules apply. By getting up to speed on VRS and IRS policies and following best practices, you’ll avoid liability for any benefit overpayments, and retirees will be aware how returning to work may impact their benefits.

VRS developed an online presentation that covers key return-to-work considerations. Specific scenarios include:

Working Part-Time While Retired

Any retiree may work in part-time positions that require 80% or less of the hours of comparable full-time permanent positions, while continuing to receive a retirement benefit. If returning to a position with their former employer, retirees must have a bona fide break in service of at least one full calendar month from their retirement date over a period they normally would work.

Full-Time K-12 and Bus Driver Critical Shortage Positions

Teacher, principal and assistant principal positions may be designated as critical shortage positions, as well as school bus driver positions. Retirees can serve in these full-time and temporary positions while continuing to receive retirement benefits. The Virginia Department of Education designates critical shortage positions annually. In addition, school divisions may designate a position as critical shortage if three or fewer qualified candidates apply for an open teaching position. The retiree must have retired from a VRS-covered position, with a break in service of at least 12 consecutive months before beginning work in a critical shortage position. Positions are for the current school year and yearly certification of eligibility is required. The retiree will not earn additional service credit.

Full-Time Retiree School Security Officer Positions

Retired sworn law-enforcement officers may return to work full-time as a retiree school security officer at a public school while continuing to receive retirement benefits. The retiree must have a break in service of at least 12 consecutive months between their retirement date and the date they wish to work in a retiree school security officer position. The retiree will not earn additional service credit. Employers are required to include the retiree’s compensation in membership payroll subject to employer contributions.

Full-Time VRS Covered Employment

Retirees may return to full-time, VRS-covered employment. Retirement benefits cease on the first day of employment until the employee retires again. Future retirement benefits, including the cost of living adjustment, may be impacted. The retiree will earn additional service credit.