Legislation reducing the sit-out time for retired educators to return to work was recently signed into law and applies to all current and future retirees, and immediately replaces the previous nine-month sit out. Be sure to read through the FAQ created by ORS outlining the impact of the law.
Under the new law (HB 4752), schools can bring back recent retirees either directly or through a third-party contractor, in one of two ways:
- Retirees may return to work in a public school district 30 days after the effective date of their retirement but may not earn more than $15,100 in a calendar year. Specific position requirements also apply during the first six months:
- A retiree working in any position other than superintendent at the time of their retirement may be hired to fill any position.
- A retiree working as a superintendent at the time of their retirement may work in any position other than superintendent.
- Retirees may work in any position after six months with no earning limit.
Critical points to keep in mind:
- Retirees cannot work in a public school district during the month of their retirement effective date, even as a volunteer.
- Retirees cannot have a promise of re-employment or a contract for future employment in a public school district before they terminate employment and begin collecting their pension.
- Retirees discovered to be collecting their pension without a bona fide termination will be required to repay pension payments erroneously received.
- Retirees collecting their pension without a bona fide termination will also be disenrolled from insurance retroactive to their retirement effective date and any medical costs they incurred during this time will be their responsibility.
The new law has a five-year sunset. If no legislative action is taken prior to that sunset, the statute would revert to a nine-month sit-out with no earnings cap exception.