Rehiring of Retirees

GENERAL RULES

Individuals who have retired from the University (or other State of Mississippi service) may be reemployed in accordance with state law and the Public Employees' Retirement System of Mississippi's (PERS) Regulation 34.

To lawfully employ a PERS service retiree, the hiring department and retiree must notify PERS in writing of the terms of the eligible employment within five days from the date of employment by jointly completing the Certification/Acknowledgement of Reemployment of Retiree form (PERS Form 4B), which is submitted with the Employment Action Form that activates reemployment.

Failure to notify PERS may result in the assessment of a $300.00 penalty per occurrence, payable by the department.

Effective July 1, 2006, PERS required employers (MSU) to report post-retirement earnings paid to reemployed retirees. The Retirement System now audits these earnings against the terms indicated on the required 4B form.

HRM encourages departments to help avoid financial penalties by following the guidelines provided in the Rehire of Retiree Hiring Tool Kit. If you have questions, please call 662 325-3713.

HIRING DEPARTMENTS REHIRED RETIREE

Excerpt from PERS Regulation 34, Reemployment After Retirement:
"To lawfully employ a PERS service retiree under Section 2, the employer must notify the Retirement System in writing of the terms of the eligible employment within five days from the date of employment and also from the date of termination on a form prescribed by the Board. Failure by the employer to timely notify the Retirement System may result in the assessment of a $300.00 penalty per occurrence payable by the employer.

A service retiree reemployed under Section 2(a) may make one election per fiscal year to either a) limit the number of days/ hours worked for all covered employers to that allowed under Subsection 2(a)(1) , or b) limit the amount of compensation that will be earned from all covered employers as provided under Section 2(a)(2) of this Regulation. A retiree who continues in or is elected to municipal or county office

(and who is not also reemployed in a non-elective position) may make one election per fiscal year to either

a) waive his or her salary and continue to receive a retirement allowance under Section 2(b)(1) or b) elect to receive an amount not to exceed twenty-five (25%) of the retiree’s average compensation in Section 2(b)(2)."

Excerpt from PERS Regulation 34, Reemployment After Retirement:

"Should a retiree fail to comply with the provisions of this Regulation resulting in the issuance of benefits in error, monthly benefits shall be canceled where necessary, and a demand shall be made for the return of any such benefits erroneously issued..."

Recordkeeping (from Rehire Retiree Hiring Tool Kit)

PERS reserves the right to audit the days and hours worked, as well as compensation, for all rehired retirees.

All rehired retirees should complete a time sheet and submit it to the department for approval and signature. Completed time sheets will provide each department with verification regarding the days and hours worked by retirees in case of a PERS audit. PERS does reserve the right to audit the days and hours worked, as well as compensation, for all rehired retirees.
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General rules and important dates for reemployment of retiree

Faculty and staff who have retired from the University (or another State of Mississippi agency) may be reemployed after a 45 consecutive calendar day break from the effective date of retirement.

Twelve month faculty or staff retiring June 30 are eligible to be rehired August 16.

Nine-month faculty who have taught summer school or held a summer research or service appointment for the previous four years prior to retirement and retiring June 30, will be treated as a twelve month employee and be eligible to be rehired on August 16.

Nine-month faculty are eligible to be rehired on October 1.

In accordance with the Public Employees’ Retirement System (PERS) Regulation 34, retirees may be rehired

for a period of time not to exceed one-half (½) of the normal days for the position in any fiscal year during which the retiree will receive no more than one-half (½) of the salary in effect for the position at the time of employment, or

for a period of time in any fiscal year sufficient in length to permit a retiree to earn not in excess of twenty-five percent (25%) of the retiree’s average compensation.

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Number of hours or days the rehired retiree can work

The employer shall determine the required number of working days for the position on a full-time basis and the equivalent number of hours representing a full-time position. The retiree may work up to one-half (½) of the required number of working days or up to one half (½) of the equivalent number of hours and receive up to one-half (½) of the salary for that position. In the case of employment with multiple employers, the limitation shall equal one-half (½) of the number of days or hours for a single full-time position.

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Hiring an employee who retired during the 2002 Retirement Incentive Program

Departments may rehire faculty and staff who participated in the Retirement Incentive Program after providing justification and obtaining permission through their chain of command and the Vice President (as of September 2005).

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Retirement status of rehired retiree

If the retiree is reemployed by the same or another covered employer in any capacity, including that of an independent contractor, within 45 consecutive calendar days from the effective date of retirement, the member shall be considered to have continued in the status of an employee and not to have separated from service.

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Exceptions to the required 45-day separation period

An exception to the 45-day separation period may be granted by PERS under the following circumstances:

for a retiree who is to be reemployed as a certificated classroom teacher at the beginning of the school year, or

any other retiree who is reemployed in state service where sufficient documentation is provided to show that such emergency employment is necessary. "Emergency" means a sudden unexpected happening, an unforeseen occurrence or condition, a sudden or unexpected occasion for action, or an unforeseen combination of circumstances that call for immediate action. The emergency must be beyond the control of the employer.

The employer who wishes PERS to consider granting an exception to the 45-day separation period must submit to PERS prior to any emergency employment a completed PERS 4Bw, Request for Approval of Emergency Employment of Retiree Form, along with appropriate supporting documentation showing that an emergency exists and that genuine efforts have been made to fill the position with someone other than a retiree. A copy of the minutes of the meeting of the governing board during which the emergency was declared must be attached to the Form 4Bw. Examples of supporting documentation to be attached to the PERS 4Bw include, but may not be limited to:

Copies of advertisements announcing the position vacancy and the dates that the advertisements were run and also the names of the publications in which the advertisements appeared.
Documentation of efforts to find a certificated person to fill a vacancy and copies of denials of requests for emergency certificates from the State Department of Education (for educational institutions only).
Documentation of contacts with local job service offices, university placement offices, Mississippi State Personnel Board, etc.
Documentation of recruitment efforts made through the Mississippi Department of Education (e.g., Mississippi Teacher Center).
Documentation of continuing efforts to fill the position vacancy.
A statement by the employer that no prior promises or guarantees of reemployment have been made by the employer to the employee.

After the PERS 4Bw has been submitted for review and consideration, PERS will notify the employer of its determination about whether the documentation submitted by the employer supports the claim that an emergency exists and that genuine efforts have been made to fill the position with someone other than a PERS retiree.

The PERS 4Bw should not be submitted to PERS before the retiring member has terminated employment; however, approval by PERS is required before the commencement of any emergency employment.

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Paperwork for reemployment and termination of a retiree

Prior to the reemployment and termination of a retiree, please complete a Certification/Acknowledgement of Reemployment of Retiree Form (PERS 4B).

The reemployed retiree should complete the Retiree Information and Retiree Acknowledgment sections and the department should complete the Reemployment Information and Employer Certification sections.
The form must be attached to a completed Employment Action Form and forwarded to the Department of Human Resources Management at least five days prior to the reemployment date.
If the termination date is known at the time of reemployment, please enter it in the Reemployment Information section. This will eliminate the need for a second form when the retiree terminates employment. Failure of timely notification to PERS may result in the assessment of a $300.00 penalty per occurrence payable by the University.
Please ensure the hire date and the termination date on the PERS 4B form match the effective date of action on the Employment Action Form and the percentage of time the rehired retiree works matches the percentage you are certifying to PERS.

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Time records for rehired retirees

All rehired retirees should complete a time record and submit it to the department/unit head for approval and signature. Each pay period, exempt rehired retirees will complete the form, Work Record: Exempt Rehired Retiree. Non-exempt employees will complete the Non-Exempt Employee Semi-Monthly Time Report, which is available as an Excel file, or in pdf format. Completed time records will provide each department with verification regarding the days and hours worked by retirees in case of a PERS audit. PERS does reserve the right to audit the days and hours worked, as well as compensation, for all rehired retirees.

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Leave status of rehired retirees

Rehired retirees do not accrue and utilize personal and major medical leave (as of July 1, 2005). In the event of an absence, departments should reduce the number of hours worked in a pay period during the regular payroll process for non-exempt employees. When an exempt employee is absent, departments should process an Employment Action Form (EAF) to reduce the employee’s pay for the current pay period. Under Section G, on the EAF, please check Short Term Leave of Absence (w/o pay) and show the number of hours used.

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Last modified June 5, 2007.

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