Working After Retirement

Health Insurance

Your appointment type and FTE in your post-retirement position will be the primary method of determining whether you are eligible for health insurance in your post-retirement position. If the post-retirement position is not benefit eligible based on PEBB eligibility rules, you may be eligible for continued health insurance coverage for a limited period of time under the Affordable Care Act (ACA).

Your eligibility for health insurance coverage will be evaluated under both the PEBB and ACA eligibility rules and regulations:

  • PEBB Benefit eligibility requirements:
    • If your post-retirement position is at least 0.50 FTE your coverage will continue until the post-retirement position ends or the FTE is reduced below the .50 FTE. Temporary Service (TS) appointments are not eligible for health insurance regardless of FTE.
  • Affordable Care Act (ACA) eligibility requirements:
    • If you worked an average of 0.75 FTE during the ACA Measurement Period (October - September), you are eligible for coverage during the following Stability Period (calendar year), regardless of hour worked. Employees in Temporary Service (TS) appointments are eligible for coverage under the ACA if they meet the requirements.
    • Click here for additional information on the Affordable Care Act.

Contact PEBB Health Team in Employee Benefits Office For assistance in determining if you are eligible for health insurance benefits during your post-retirement position, please contact the PEBB Health Team in the Employee Benefits Office.

Employee Benefits PEBB Health Team Email: [email protected] Phone: 541-737-2805 Schedule Appointment: https://hr.oregonstate.edu/benefits/contact-us (under "PEBB Health Insurance")

Leave Accrual and Usage

Unclassified Employees

  • Sick Leave
    • Up to 40 hours of your unused Sick Leave will be restored when you return in a post-retirement position. You will begin accruing pro-rated sick leave each month based on FTE/hours worked and in paid leave status (8 hours for 1.00 FTE). Sick Leave may be taken once accrued.
  • Vacation Leave
    • When you return in a post-retirement position of at least 0.50 FTE, you will accrue pro-rated vacation leave each month based on FTE/hours worked or in paid leave status. Balance will begin at zero (0) hours. Vacation leave cannot be taken until you complete six (6) full months of service. Unused Vacation Leave is NOT paid out when your post-retirement position terminates.

Classified Employees

  • Sick Leave
    • Up to 40 hours of your unused Sick Leave will be restored if you return in a post-retirement Temporary Service (TS) position. You will begin accruing pro-rated sick leave each month based on FTE/hours worked and in paid leave status (8 hours for 1.00 FTE). Sick Leave may be taken once accrued.
  • Vacation Leave
    • Post-retirement Temporary Service (TS) positions are not eligible for vacation leave.

Limitation to Hours Worked in Post-Retirement Position: PERS Members

OSU policy restricts the work hours of a returning retirees, regardless of the retirement plan the employee retires under; the age of the employee at retirement; or whether the employee/retiree is 'full Social Security age'.

Depending on the employee's retirement plan, there may be additional restrictions to hours worked and/or the availability of funds from the pension program.

PERS Tier 1 & Tier 2 Members (hired and/or became PERS member prior to August 23, 2003)

  • PERS Work After Retirement Website - PERS Tier 1 & Tier 2 Members
  • OSU work hours limitation:
    • Hours may not exceed 1,040 hours in a calendar year.
  • PERS employee retirement contributions will not be made on post-retirement earnings. Under Senate Bill 1049 OSU is required to make employer rate contributions to PERS on retirees as if they are working as an active member. However, these contributions do not benefit the retiree they are used to address the unfunded liability in the PERS system.
  • It is your responsibility to monitor/track your hours to ensure you do not exceed the hour's limitations that OSU has established.

PERS OPSRP (Tier 3) Members (hired and/or became PERS member on or after August 23, 2003)

  • PERS Work After Retirement Website - PERS OPSRP (Tier 3) Members
  • OSU work hours limitation:
    • Hours may not exceed 600 hours in a calendar year unless an exception has been made based on the needs of the department to allow the retiree to work up to 1,040 hours.
  • PERS employee retirement contributions will not be made on post-retirement earnings. Under Senate Bill 1049 OSU is required to make employer rate contributions to PERS on retirees as if they are working as an active member. However, these contributions do not benefit the retiree they are used to address the unfunded liability in the PERS system.
  • It is your responsibility to monitor/track your hours to ensure you do not exceed the hours limitation placed on you by OSU.

Limitation to Hours Worked in Post-Retirement Position: Optional Retirement Plan (ORP) Members

OSU policy restricts the work hours of a returning retirees, regardless of the retirement plan the employee retires under; the age of the employee at retirement; or whether the employee/retiree is 'full Social Security age'.

Depending on the employee's retirement plan, there may be additional restrictions to hours worked and/or the availability of funds from the pension program.

Optional Retirement Plan (ORP) Members

Work hours are restricted to no more than 1040 hours in a calendar year by OSU Policy. The ORP does not authorize or limit how many hours a Retired Participant may work in each calendar year. Instead, a Retired Participant who is rehired into a Qualifying Position will lose Retired Participant status and will reenter the plan as a new Active Participant (after a six month waiting period that is uninterrupted by 30 days or more). A Retired Participant cannot become an Active Participant during a period of post-retirement work or benefit provided through a retirement incentive program.

An ORP member becomes a 'Retired Participant' in the ORP program in one of two ways:

  1. Employee has separated from service after age 55 AND takes a partial distribution from their ORP account. If the employee separates from service after age 55 but does NOT take a distribution of any type, they become an 'Inactive Participant' and will become a 'Retired Participant' after they take a distribution from their ORP account; OR
  2. Employee is a participant in a retirement incentive program, including but not limited to, tenure relinquishment, tenure reduction, or an early retirement incentive program.

Access to Funds in the ORP account:

  • An employee that meets the Plan's definition of a 'Retired Participant' has access to the funds in their ORP account.
  • An employee that does not meet the Plan's definition of a 'Retired Participant' does not have access to the funds in their ORP account.

Working After Retirement:

  • Not on a Tenure Relinquishment Agreement:
    • The employee is an 'Active Participant' by Plan rules and will not have access to funds in their ORP account.
  • With a Tenure Relinquishment Agreement:
    • The employee is considered a 'Retired Participant' through the end of the term of the Tenure Relinquishment Agreement and can access the funds in their ORP Account while on the Tenure Relinquishment Agreement.
    • If the employee continues to work past the termination date of the Tenure Relinquishment Agreement, they will no longer meet the definition of a 'Retired Participant' and will no longer have access to the funds in their account.   
    • The employee may become an 'Active Participant' again in the ORP plan if they meet requirements of the plan, otherwise, they will be considered an 'Inactive Participant'.

What happens if I am rehired at an Oregon public university while I am retired under the ORP?

  • An ORP Retired Participant becomes an Active ORP Participant under the same terms as a new employee.
  • If an ORP Retired Participant is in a retirement incentive program, the Participant is not eligible to become an Active Participant until after the end of any post-retirement period of work. If the agreement provides, for example, a post-retirement appointment for each of five successive years after retirement, any work performed after the end of that 5 year period begins a new ORP waiting period, after which the Retired Participant may re-establish Active Participant status.

An ORP Retired Participant who re-enters the Plan is one who:

  • Is appointed to a Qualified Position (see definition in Section 1 of this Decision Making Guide).
  • Serves a 6-month waiting period that is uninterrupted by more than 30 days; and
  • Establishes Active Participant status on the first of the month after completion of the waiting period; and
  • Is eligible for the contribution tier that is available to new employees on the date the Retired Participant is rehired; and
  • Is fully vested in both the Employer and Employee accounts if 50 years of age or older; and
  • Is eligible for an ORP distribution until Active Participant status is restored.