Working after a Colorado PERA retirement

The limit

A "day" is more than 4 hours. Days of 4 hours or less count by the hour: add those hours up and divide by 6.5454. Working After Retirement, definitions (PDF p. 2); pp. 1-3

PERA's example: Janet works 60 long days and 90 hours on short days. 90 ÷ 6.5454 = 13.75, so she has used about 74 days (our engine: 73.75). Working After Retirement p. 1, Workday Limit Definition, Example

Our examples: 108 long days and 30 short-day hours is 112.58 days: 3 days over the 110-day limit, so 15% off a later month's benefit (5% a day). A designated retiree with 130 days and 40 hours is at 136.11, under 140.

Designated retirees and critical shortages

School/DPS Division employers (and state colleges) may designate up to 10 retirees a year (plus one per 1,000 students over 10,000) to work up to 140 days/916 hours for that employer; school-district designations are limited to six consecutive calendar years beginning January 2025. Designation must be reported by September 1. Working After Retirement, definitions (PDF p. 2); pp. 1-3

Rural school districts, their charter schools, and BOCES may declare a critical shortage for listed roles (including teachers); a designated retiree has no limit for that position for up to six consecutive calendar years, gets no PERACare subsidy, and if retired with a reduced benefit must wait two years to return to the same employer in that position. Working After Retirement, definitions (PDF p. 2); pp. 1-3

Your first month

Working or volunteering for a PERA employer on the first business day of the effective month invalidates/delays retirement. Working for a PERA employer in your retirement month cuts your benefit by 5% for each day or part day. Working After Retirement, definitions (PDF p. 2); pp. 1-3

Working retirees pay working retiree contributions at the regular member rate; they earn no added benefit and can't be refunded. Not reporting excess days by March 31 adds a penalty at PERA's assumed rate of return (7.25%) per day of nondisclosure. Working After Retirement, definitions (PDF p. 2); pp. 1-3

PERA's booklets describe no DROP program; working after retirement is how retirees go back to work. Rules are in state law at C.R.S. 24-51-1101

From the sources

• You can work for a PERA employer up to 110 days or 720 hours per calendar year without losing benefits. A 'day' means more than four hours of work.Working After Retirement p. 1, Workday Limit Definition
• To combine short days with long days, divide your hours on short days by 6.5454. In PERA's example, 60 long days plus 90 short-day hours comes to 74 days, under the limit.Working After Retirement p. 1, Example
• Each day over the limit cuts a later month's benefit by 5%. Working for a PERA employer during your first month of retirement cuts your benefit by 5% for each day or part day worked.Working After Retirement pp. 1, 3
• Don't work or volunteer for any PERA employer on the first business day of your retirement month. Doing so can cancel or delay your retirement.Working After Retirement, definitions (Termination); p. 1
• School districts can designate up to 10 retirees a year, plus one per 1,000 students over 10,000, to work up to 140 days or 916 hours for that district. Since January 2025, a school district designation is limited to six consecutive calendar years.Working After Retirement p. 2
• Rural school districts, their charter schools and BOCES can declare a critical shortage of teachers and other listed roles. A retiree hired into such a role has no work limit for that job for up to six consecutive years, but gets no PERACare subsidy. A reduced-benefit retiree must wait two years before returning to the same district this way.Working After Retirement p. 2
• Working retirees pay contributions at the regular member rate. Those contributions don't add to your benefit and can't be refunded.Working After Retirement, definitions (Working Retiree Contribution)

Questions