Fraud and Abuse - Returning to Work for the Same Agency Within Six Months of Retirement

If an individual retires from one of the Utah Retirement Systems and returns to employment requiring 20 or more hours of work per week, or at least a half-time teaching contract, for the same agency within six months of retirement date, the retirement allowance is canceled.

Exclusion: If the retiree is a post-retired elected official, his or her retirement allowance is not canceled and the retiree does not accrue additional service credit.

If a retiree returns to post-retired employment requiring fewer than 20 hours of work per week or less than a half-time teaching contract for the same agency within six months of his or her retirement date, and the retiree is not an elected official, his or her compensation cannot exceed the Social Security earnings limit, if the retiree is under full retirement age according to Social Security guidelines. If the limit is exceeded, the retirement allowance is reduced by 25% for each month the retiree exceeds the limit through the end of the six-month period.

Exclusion: If the retiree is a post-retired elected official, his or her retirement allowance is not reduced and the retiree does not accrue additional service credit.

Requirements for re-employment by the same agency within six months of retirement (working fewer than 20 hours per week or less than a half-time teaching contract)

  • Job duties for the six-month period immediately following retirement must be distinctly different or sufficiently reduced from pre-retirement job duties.
  • Within the newly-defined job duties, the employer cannot require or expect the retiree to work 20 hours or more per week.
  • There can be no guarantee or agreement, written or verbal, between the employer and retiree that at the end of the six-month post-retirement period the retiree will have full-time employment.
  • Recruitment for the position must commence as soon as possible after the retirement announcement and be consistent with the employer's recruiting procedures for similar positions.

If any of the above requirements are not met, the retirement allowance is canceled.