After I begin drawing IPERS benefits following an “early out” or early retirement, how long must I wait before returning to work?
IPERS requires that a member terminate employment and complete a bona fide retirement period. A member’s right to draw an IPERS pension is not affected by how the member terminates employment, unless the termination is a sham transaction. For example, if an employer and employee had an agreement that the employee would be rehired after completing a bona fide retirement, and this agreement was in place before the employee started drawing IPERS benefits, IPERS would consider that a sham transaction. An employer may impose additional return-to-work restrictions when offering an early retirement incentive program. These are separate from IPERS. The employer, not IPERS, determines and enforces these restrictions.
