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Reemployment After Retirement

Temporary Reemployment Changes

Senate Bill 1 passed during the 2021 Special Session of the Kentucky General Assembly makes some temporary changes to a retired-reemployed rule for some retirees. To learn more, read our FAQ.

Governor’s Executive Orders

On March 31, 2020, Governor Beshear issued Executive Order 2020-265 suspending statutes and regulations restricting participating employers from reemploying retired members in the specific positions identified in the order. On April 2, 2020, Governor Beshear issued Executive Order 2020-266, expanding the scope of positions covered to include all positions under city, county, and state government that are necessary to address the State of Emergency.  

Please note that Executive Order 2020-265 only applies to members who were retired as of the March 31, 2020 Order. Executive Order 2020-266 specifically noted that all previous Executive Orders were to remain in full force and effect. Thus, a member must have an effective retirement date of March 1, 2020 or before at KPPA in order to be subject to the Executive Orders.

During the State of Emergency, the Executive Orders suspend the requirement for a retired member to have a waiting period to return to employment in any position for which a need occurs during the State of Emergency related to Covid-19. The submission of retired-reemployed forms by the employer for these positions is also suspended. Those employer forms must be submitted to KPPA within 30 days of the expiration of the State of Emergency, along with a list of employees who returned to employment under the terms of the Executive Orders.

If you are a retiree and return to employment under the Executive Orders, you should submit your Form 6754 prior to returning to employment if you are able. If you are unable to submit this form when you begin reemployment, the Form 6754 must be submitted to KPPA within 30 days of the expiration of the State of Emergency. Please be aware that if you do send in your Form 6754, you may not get an immediate response from KPPA due to the delay in receiving the participating employers’ required forms under the Executive Orders.

Please note that the Executive Orders do not waive the federal “bona fide separation from service” requirements that the member must observe. The member must terminate employment without a prearranged agreement to reemploy with the same employer or another participating employer in the future. 


NOTE: If you are reemploying in a position that is not in response to the Covid-19 State of Emergency, you and your potential employer must continue to adhere to current laws and regulations as outlined below.

Reemployment

Most members pursue personal interests after retirement — the reward for their service to the public. Some members use retirement to begin a second career, and others return to work for financial reasons. KPPA retirees should be aware of the requirements, and potential consequences, of accepting employment with any agency participating in any of the systems administered by KPPA.

The following is an overview of the requirements of Kentucky Revised Statute 61.637, the employment after retirement statute.  Please refer to our Reemployment after Retirement Handbook for complete information.

You can submit the required forms or information, or request information about your specific reemployment after retirement situation, by sending a request by mail to us at 1260 Louisville Road, Frankfort KY 40601, or faxing the request to (502) 696-8822. You can also submit forms, information, or requests by secure email. Log in to the Secure Email Portal and send email to Retired.ReEmployed@kyret.ky.gov. You can refer to our Secure Email Portal User Manual for more information.

Prior to Retirement

Kentucky law prohibits a member from having a prearranged agreement,  prior to his or her effective retirement date, to return to employment in any position with any participating agency. The member must certify on the Form 6000, "Notification of Retirement" that no prearranged agreement exists prior to retirement.

Final Determination

In addition to the foregoing form, KPPA may request additional information from a member and/or a member's employer related to a post-retirement reemployment request. By law, KPPA will issue a final determination regarding the member's certification of the absence of a prearranged agreement and/or reemployment status only upon receipt of the required form(s) and any additional information requested by KPPA, but no later than thirty (30) days from receipt of the required form(s) and information. The final determination letter will be mailed directly to the member at the last known address on file with KPPA, or can be securely emailed to the member upon request.

Twelve Month Rule

Within twelve (12) months of retirement: If a retired member is considering employment1 or volunteer opportunities with a participating employer within twelve (12) months of his or her effective retirement date, both the member and participating employer must notify KPPA by submitting the appropriate forms.  

After twelve (12) months of retirement: Neither a retired member nor a participating employer are required to notify, seek a final determination, or submit forms to KPPA related to any employment1 or volunteering accepted twelve (12) months after the member's effective retirement date.

1"Employment" includes any of the following: (1) Reemploying directly with a participating employer, (2) Working as an independent contractor with a participating employer, (3) Working for a person or company that contracts with a participating employer, (4) Working for a participating employer

Participating Employers

Participating employers should refer to the Employers section of our website to determine monthly reporting obligations for retired members reemployed 12 months after retirement. Read More

Reemployment with a Participating Employer

Required Forms: If within twelve (12) months of a member's effective retirement date, he or she considers employment with a participating employer, the member is required to report this arrangement to KPPA by submitting a Form 6754 - Member Reemployment Certification. The participating employer must also certify there is no prearranged agreement by submitting a Form 6751 - Employer Certification Regarding Reemployment. Failure to submit the required forms may result in the member's retirement benefits being voided and the member may be required to repay all retirement allowances, dependent child payments, and health plan premiums paid by KPPA.

Break in Service: In almost all reemployment situations, the retired member is also required to observe a three (3) calendar month break in service from his or her effective retirement date before returning to work for a participating employer. The only exception is when a member retires from a hazardous position and returns to employment with a participating employer in a  regular, full-time hazardous position. In this specific situation, the member must only observe a one (1) calendar month break before returning to employment in that regular, full-time hazardous position. If the member fails to observe the proper break in service, the member's retirement benefits will be voided and the member will be required to repay all retirement allowances, dependent child payments, and health plan premiums paid by KPPA.

Please note: When determining the months for the required break in service, it is important to understand that not all positions appearing to be hazardous are, in fact, certified "hazardous duty" by KPPA. It is also important to be aware that a "regular" and "full-time" position does not simply mean working a 37.5- to 40-hour week. If there is any doubt, please contact KPPA.

Scenarios: The following are examples of reemployment after retirement and the required break in service:

  • Scenario #1: A member retiring from a hazardous duty position returns to work part-time or temporarily for a participating employer performing hazardous job duties. The member must observe a three (3) calendar month break in service.
  • Scenario #2: A member retiring from a non-hazardous position returns to work for a participating employer in a regular, full-time hazardous position. The member must observe a three (3) calendar month break in service.
  • Scenario #3: A member retires from a hazardous or non-hazardous position and returns to work in a regular, full-time non-hazardous position for a participating employer. The member must observe a three (3) calendar month break in service.
  • Scenario #4: A member retires from a certified hazardous position and reemploys after retirement with a participating employer in a regular, full-time hazardous position. The member must observe a one (1) calendar month break in service.

Note: Senate Bill 1 passed during the 2021 Special Session of the Kentucky General Assembly makes some temporary changes to a retired-reemployed rule for some retirees. To learn more, read our FAQ.

Independent Contractor/Leased Employee

Required Forms: If within twelve (12) months of a member's effective retirement date, he or she accepts work with a participating employer as an independent contractor or leased employee, the member is required to report this arrangement to KPPA by submitting a Form 6754 - Member Reemployment Certification. The participating employer shall also submit the information required or requested by KPPA, including submission of a Form 6752 - Employer Certification of Independent Contractor/Leased Employee.

Within three (3) calendar months following the member's effective retirement date, if KPPA determines the arrangement does not qualify as an independent contractor or leased employee relationship, the member's retirement benefits will be voided, and the member will be required to repay all retirement benefits because the member does not have the appropriate break in service.

After three(3) calendar months but within twelve (12) months following the member's effective retirement date, if KPPA determines the arrangement does not qualify as an independent contractor or leased employee relationship and that a prearranged agreement existed between the member and the employer for the member to return to work with the employer, the member's retirement benefits will be voided, and the member will be required to repay all retirement benefits.

After twelve (12) months following a member's effective retirement date, the member may continue to receive his or her retirement benefit during the period of the contract, and the member will not be required to notify KRS or submit any documentation.

Volunteering

Who is a volunteer: A volunteer is someone who freely and without pressure or coercion performs hours of service for an employer participating in one (1) of the systems administered by KPPA without receipt of compensation for services rendered, except for reimbursement of actual expenses, payment of a nominal fee to offset the costs of performing the voluntary services, or both. Nominal fees cannot exceed $500 per month. If a member volunteers for more than one participating employer, all compensation will be added together to determine whether it exceeds the $500 per month limit.

Volunteer rules: A member cannot be exempted from the break in service requirement as a volunteer for a participating employer if he or she previously earned creditable compensation from that participating employer and would receive reimbursement of actual expenses or a nominal fee from that employer. A member who serves as a volunteer for a participating employer, particularly during the break in service period normally required after retirement, may not become an employee, leased employee, or independent contractor of that employer for a period of at least twenty-four (24) months following the retired member's most recent retirement date.

Volunteers are not required to have a break in service and do not have to wait three (3) months from their effective retirement date to begin volunteering. However, if a member providing volunteer services with a participating employer violates any of the volunteer provisions in statute, then that member shall be deemed an employee of the employer as of the date he or she began providing volunteer services. If this occurs, the member's retirement will be voided if a prearranged agreement existed or if there was not a proper break in service and the member will be required to repay all retirement allowances, dependent child payments, and health plan premiums paid by KPPA.

Required forms: If a member considers serving as a volunteer within twelve (12) months of his or her retirement date with an employer participating in KPPA or an entity affiliated with a participating employer, the member is required to notify KPPA in writing by submitting a Form 6754 - Member Reemployment Certification. The participating employer shall also submit the information required or requested by KPPA, including submission of a Form 6753 - Employer Certification of Volunteer. Failure to submit the required forms may result in the member's retirement benefits being voided and the member may be required to repay all retirement allowances, dependent child payments, and health plan premiums paid by KPPA.

Example: The following is an example of the application of the volunteer rules after retirement.

Member retires from Franklin County Board of Education as a teacher's aide but wants to volunteer at a different school in Shelby County after retirement to read books to children. The retiree can volunteer during retirement as long as he or she does NOT receive reimbursement of actual expenses or a nominal fee in excess of $500 per months from Shelby County Board of Education for volunteering and does NOT become an employee of Shelby County Board of Education within twenty-four (24) months of his or her effective retirement date.

Elected Officials

Elected to the same office within twelve (12) months: If an elected official participating in one of the systems administered by KPPA retires and is elected to the same office within twelve (12) months of his or her retirement date, the member's retirement will be voided, and the member will be required to repay all retirement benefits.

Mayor or member of a city legislative body: Different rules may apply for mayors and members of city legislative bodies seeking to continue serving in their roles following retirement. For more information, mayors and members of city legislative bodies should contact KPPA.

Other Information

Required Break in Service: State law mandates that months be considered when confirming the required break in service from the time of retirement to the time of reemployment. Days are not considered when determining if the required break in service has been met.

Member's Age: The obligation to report employment or volunteer work for a participating employer within twelve (12) months of the member's effective retirement applies regardless of the age of the retired member. There is not reporting exemption based on age; however, while a member is receiving disability retirement, the member is required to report all employment until they reach normal retirement age.

No Second Retirement Account: Retired members whose initial reemployment with a participating employer occurs on or after September 1, 2008, will not submit employee contributions, earn service credit, or be eligible for a second retirement account.

Reestablishing Retirement After Voiding: If a retirement is voided for violation of retired-reemployed law in Kentucky Revised Statute 61.637 and Kentucky Administrative Regulation Title 105 Chapter 1:390, the member does not permanently lose those benefits. The member will be required to repay all benefits, including health insurance and dependent child benefit payments, during the time period of violation. However, the member will continue to accrue service credit and creditable compensation if employed with a participating employer in a regular, full-time position. Upon subsequent termination and retirement, the member's retirement allowance benefits calculation will now include any additional service credit and creditable compensation earned during this period of continued employment.

Health Insurance: If a retired member with an initial participation date prior to September 1, 2008, has elected receipt of health insurance coverage through KPPA but later reemploys with a participating employer in a regular, full-time position, the employer is required to reimburse KPPA for the single coverage health insurance contribution provided to the retiree. If a retired member with an initial participation date on or after September 1, 2008, reemploys with a participating employer in a regular, full-time position, the retired member will not be eligible for health insurance coverage from KPPA during the period of reemployment.

Medicare Secondary Payer: Please be advised that under the Medicare Secondary Payer (MSP) Act, in certain circumstances, a Medicare-eligible retiree's reemployment with a participating employer will prohibit KPPA from offering, or continuing to offer, retiree coverage under the Humana Medicare Advantage Plan. Members may call KPPA for more information and should also contact Medicare with any questions. Read More 

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