Working after an Alaska TRS retirement: when the pension stops

Short answer: you can't pre-arrange a return, and you need a break before working for the employer you retired from (shorter if you're 62 or older). Going back to a permanent Alaska TRS job stops your pension while you work. A return during the break can bring tax penalties too (see taxes). If you're still deciding when to retire, compare one more year or run the calculator.

DRB's rules

Returning to a permanent full-time or part-time Alaska TRS position stops your benefit until you leave; you contribute again and earn a second benefit on the new service and salary. A full-year contract (172 days or more) stops benefits from July 1. Handbook (2011), p. 25, Standard Option; WARNING; Retirement booklet (June 2023), p. 30; Seminar handout (Jan. 6, 2025), slide 31; AS 14.25.043(a), (c)

If you retired early and return, the second retirement also adds an actuarial increment for the months you were not paid. Retirement booklet (June 2023), p. 30, Returning to Work With a TRS Employer After an Early Retirement; AS 14.25.043(c)

Allowed without stopping your pension: Any non-Alaska TRS employer (including a PERS position, if you are not also a PERS retiree), private employment, a temporary or nonpermanent position with a Alaska TRS employer, or a contract under 50%. Seminar handout (Jan. 6, 2025), slide 32; Retirement booklet (June 2023), p. 30, Reemployment with a Non-TRS Employer

The break before going back to the same employer

No pre-arranged return to the employer you retire from, and a break before working for that same employer in any capacity: 60 days if 62 or older, six months if younger. A pre-arrangement invalidates the retirement (all benefits repaid); an early return suspends the benefit and restarts the break; under age 59-1/2 the payments may be reported as early distributions. Retirement booklet (June 2023), pp. 30-31, Section XI; Seminar handout (Jan. 6, 2025), slide 30

The school district rehire law

A school district may rehire a Alaska TRS retiree who retired under AS 14.25.110(a) (normal retirement) without stopping the pension if the district adopts a shortage resolution and policy, advertises the job for 10 business days and actively recruits non-retirees first, and the retiree certifies no pre-arrangement and has the 60-day (62+) or six-month break. Contracts may not exceed 12 consecutive months. The retiree does not become an active member, earns no service, and pays no contributions; the district pays the employer contribution and may give active-employee health coverage. AS 14.20.136; AS 14.25.043(f), (g); AS 14.25.070(a)

The calculator applies DRB's stop-the-pension rule.

Retirement incentive retirees

Retirement Incentive Program retirees who return to Alaska TRS, PERS or JRS employment forfeit the 3 years of incentive credit and owe 110% of the extra benefits received. Handbook (2011), p. 25, Retirement Incentive Programs

Alaska TRS has no DROP. Handbook (2011), p. 18, Retirement Benefit Options; Seminar handout (Jan. 6, 2025), slide 14, Retirement Decision Points

The facts

• If you go back to a permanent Alaska TRS job (half-time or more), your pension stops while you work. You contribute again and earn a second, separate benefit. A full-year contract stops payments from July 1.Handbook (2011), p. 25, Standard Option; Seminar handout (Jan. 6, 2025), slide 31; AS 14.25.043
• You can keep your pension while working for a non-Alaska TRS employer, in a PERS job (unless you are also a PERS retiree), in a temporary or nonpermanent job, or on a contract under 50%.Seminar handout (Jan. 6, 2025), slide 32
• You must truly separate: no pre-arranged return, and a break before working for the same employer in any capacity. The break is 60 days if you are 62 or older, six months if you are younger. A pre-arranged return can void your retirement.Retirement booklet (June 2023), pp. 30-31; Seminar handout (Jan. 6, 2025), slide 30
• Check with Alaska TRSState law also lets a school district with a shortage policy rehire a normal retiree for up to 12 months without stopping the pension (no new service is earned). DRB's retirement booklet does not describe this, so confirm with DRB first.Statute only; DRB's 2023 booklet and 2025 handout do not mention the AS 14.20.136 route.AS 14.20.136; AS 14.25.043(f)

The calculator shows your own break date.

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