Deferred Retirement Option Program participants are considered to be retired even though they continue to work for a specified period of time. Once you terminate from DROP, you have fully retired and subject to termination requirements and reemployment restrictions with FRS participating employers.
After you retire under the FRS, you can work for any private employer, for any public employer not participating in the FRS, or for any employer in another state, without affecting your FRS benefits.
There are, however, certain termination requirements and reemployment limitations that affect your retirement benefit if you are employed with FRS-participating employers during the first 12 calendar months after your effective retirement date without DROP participation or after your DROP termination date.
The termination requirements and reemployment limitations with FRS-participating employers are:
If you return to work during the first six calendar months of your retirement or after your DROP termination date, you are not retired. Your retirement application is voided and all retirement benefits, including any funds accumulated during your DROP participation, must be repaid, by you, to the FRS Trust Fund. This restriction applies even if the particular position you hold is not covered by the FRS. This restriction also applies to employment with the same employer if your agency withdrew from the FRS effective Jan. 1, 1996, for newly hired employees. You cannot become a newly hired employee until after you meet the definition of termination by remaining unemployed for six calendar months.
You may not receive both a salary and a retirement benefit in the same month during the seventh through twelfth calendar months of your retirement or after your DROP termination date. There are no exceptions to this reemployment limitation during this period. This restriction applies even if the particular position you hold is not covered by the FRS. You must inform us if you work for an FRS employer during the reemployment limitation period.
Your retirement benefits are forfeited for the months you are employed by an FRS employer during the reemployment limitation period. You and your employing agency are jointly and severally liable for repaying any retirement benefits you receive while working during this period.
There are no limits on working for an FRS employer after you have been retired for
12 calendar months.
If you are reemployed with a participating employer, you will be required to sign a statement that your reemployment does not violate these provisions.
Note: Employment with an FRS employer includes any full-time, part-time, temporary, other personal services (OPS), contractual services or noncontractual services with your previous employer or any other FRS employer.