Four ways to work without touching your pension
- Work for a non-ASRS employer.
- Work as a leased or temporary employee for an ASRS employer.
- Work directly for an ASRS employer, but for less than 20 hours per week.
- Work directly for an ASRS employer for 20 hours or more per week after reaching normal retirement, once at least 365 days have passed since termination.
Under 20 weeks a year, or under 20 hours a week
You don't become an active member again, so your pension keeps going. ASRS Return to Work page; ASRS New Member Guide, p. 7; A.R.S. 38-766(A); A.R.S. 38-711(23)(b)
Within 365 days of termination, a retiree keeps the pension working for an ASRS employer either under 20 hours a week for any length of time, or 20+ hours a week for no more than 19 weeks in the fiscal year. Weeks of 20+ hours worked earlier in the same fiscal year count. ASRS Return to Work page, Before 365 consecutive days since Termination; A.R.S. 38-766(A)
Since July 1, 2012, an employer that hires a retiree (normal-age or early retiree whose benefit is not suspended) into a position ordinarily filled by an employee pays an alternate contribution rate set by the actuary, at least 2%. The retiree pays nothing. Not owed when the position is already filled by a contributing active member. ASRS Return to Work page; ASRS Session 3, slides 57-59; A.R.S. 38-766.02(A)-(C), (F)
At normal retirement, 365 days after you left
A retiree at normal retirement who terminated employment can work unlimited hours for an ASRS employer and keep the pension once 365 days have passed since termination (not since retirement). The retiree signs a statement within 30 days of returning (no contributions, no LTD, no added service); a retired certified teacher returns without tenure; the choice is irrevocable for that employment. ASRS Return to Work page, Additional Details; ASRS Re-Retirement Application, p. 1; A.R.S. 38-766.01(A), (C)-(F)
20+ weeks and 20+ hours, without the 365-day rule
A retiree engaged by an ASRS employer for at least 20 weeks in each fiscal year and at least 20 hours per week resumes active membership; ASRS suspends the pension until the retiree terminates and files for reretirement, or reaches the normal retirement date, no longer meets active-membership requirements, and files for reretirement. ASRS Return to Work page, The Basics; A.R.S. 38-766(A); A.R.S. 38-711(23)(b)
On reretirement the annuity is recomputed with the added compensation and service, in the original option and beneficiary unless active membership resumed for at least 60 consecutive months. ASRS: a re-retiree keeps the first option and beneficiary unless they worked at least 60 consecutive months after returning. ASRS Re-Retirement Application, p. 1 (Section 3); A.R.S. 38-766(C)
Other rules
- An early retiree must terminate employment to return in any capacity, and must wait until the later of 365 days after termination and reaching normal retirement before working 20+ hours a week for 20+ weeks while keeping the pension. Before then, only under-20/20 work keeps the pension. ASRS Return to Work page; ASRS Re-Retirement Application, p. 1; A.R.S. 38-766.01(A)
- A retiree whose benefit should have been suspended must repay benefits received from the date ASRS notifies them, from when ASRS determines they knew or should have known, or another period approximating the violation. A.R.S. 38-766(B)
- No suspension if the new position is a true change in position, duties and title, requires (or allows and the member elects) participation in another state retirement system, and does not require ASRS membership. No ASRS service accrues. A.R.S. 38-766(D)-(E)
- A retiree at normal retirement age may return as an elected official and keep benefits. A.R.S. 38-766.01(B)
- An employer that hires a retiree under 38-766 pays ASRS a contribution at the actuary's rate (38-766.02(B)) until the retiree terminates or resumes active membership. A.R.S. 38-766(G)
- A member who has reached normal retirement may retire without terminating if work drops below 20/20 with the employer's agreement, and must stay under 20/20 with every ASRS employer for the rest of that employment. ASRS Return to Work page; ASRS Employer Basics 2025, p. 30; A.R.S. 38-764(I)
From ASRS and the law
- The Article 2 section list (A.R.S. 38-711 to 38-794) has no DROP (deferred retirement option plan) for ASRS members. The closest feature is the partial lump sum of up to 36 months of benefits at retirement.A.R.S. 38-760(B)(3)
- If you go back to an ASRS employer for at least 20 weeks a year and 20 hours a week, you become an active member again and your pension is suspended.ASRS Return to Work page, The Basics; A.R.S. 38-766(A)
- The 365-day rule: if you have reached normal retirement and 365 days have passed since you left employment (counted from termination, not retirement), you can work any hours for an ASRS employer and keep your pension.ASRS Return to Work page, Additional Details; ASRS Re-Retirement Application, p. 1; A.R.S. 38-766.01(A), (F)
- Under the 365-day rule you sign a statement for your employer within 30 days of returning (no contributions, no added service), a retired certified teacher returns without tenure, and the choice is irrevocable for that job.ASRS Return to Work page, Additional Details; A.R.S. 38-766.01(C)-(D)
- If your pension is suspended and you later retire again, the benefit is recomputed with the new pay and service, in your original option unless you worked 60+ consecutive months.ASRS Re-Retirement Application, p. 1; A.R.S. 38-766(C)
- If benefits should have been suspended, you may have to repay them.A.R.S. 38-766(B)
- In the first 365 days after you leave, you keep your pension working for an ASRS employer under 20 hours a week, or 20+ hours a week for no more than 19 weeks in the fiscal year.ASRS Return to Work page, Before 365 consecutive days since Termination; A.R.S. 38-766(A)
- If you retired early, you must wait until the later of 365 days after leaving and reaching normal retirement before working 20+ hours a week for 20+ weeks and keeping your pension.ASRS Return to Work page; ASRS Re-Retirement Application, p. 1; A.R.S. 38-766.01(A)
- Working for a non-ASRS employer, or as a leased or temporary worker for an ASRS employer, does not affect your pension.ASRS Return to Work page, The Basics
Whether you count as an early or normal retiree depends on your membership-date rules and the early-retirement page. If you return with active-employee health coverage, read how it affects the premium benefit.
Questions
Can I go back to work for an ASRS employer after retiring?
Yes. If the job is under 20 weeks a year or under 20 hours a week, your pension keeps going. If it is at least 20 weeks and 20 hours, your pension is suspended, unless you use the 365-day rule (ASRS Return to Work page; ASRS New Member Guide, p. 7; A.R.S. 38-766(A); A.R.S. 38-711(23)(b); ASRS Return to Work page, Additional Details; ASRS Re-Retirement Application, p. 1; A.R.S. 38-766.01(A), (C)-(F)).
What is the 365-day rule?
A retiree at normal retirement who terminated employment can work unlimited hours for an ASRS employer and keep the pension once 365 days have passed since termination (not since retirement). The retiree signs a statement within 30 days of returning (no contributions, no LTD, no added service); a retired certified teacher returns without tenure; the choice is irrevocable for that employment. (ASRS Return to Work page, Additional Details; ASRS Re-Retirement Application, p. 1; A.R.S. 38-766.01(A), (C)-(F))
I retired early. When can I go back full time?
An early retiree must terminate employment to return in any capacity, and must wait until the later of 365 days after termination and reaching normal retirement before working 20+ hours a week for 20+ weeks while keeping the pension. Before then, only under-20/20 work keeps the pension. (ASRS Return to Work page; ASRS Re-Retirement Application, p. 1; A.R.S. 38-766.01(A))
Does ASRS have a DROP?
The Article 2 section list (A.R.S. 38-711 to 38-794) has no DROP (deferred retirement option plan) for ASRS members. The closest feature is the partial lump sum of up to 36 months of benefits at retirement. (A.R.S. 38-760(B)(3))
Source: ASRS Employer Basics 2025 handbook, March 2025 edition, saved Nov. 12, 2026; with other ASRS publications and the Arizona Revised Statutes, p. 30. Also ASRS New Member Guide, p. 7. Also ASRS Basics for Employers, Session 3: Service Verification, Refunding, Retiring, Return to Work (slides), slides 57-59. Also ASRS Application for Re-Retirement Benefit, p. 1. Also ASRS web page: Return to Work. Also A.R.S. 38-711, 38-760, 38-764, 38-766, 38-766.01, 38-766.02 (Arizona Revised Statutes, Title 38, Ch. 5, Art. 2). Last reviewed .