- If you return to a pension-creditable job with a participating employer, your pension and retiree health stop until you retire again.Summary Plan Description (2026), p. 36, Work Restriction; Return To Work Criteria page (saved Nov. 12, 2026)
- You can keep your pension while working as a daily substitute, a casual/seasonal employee (under 30 hours a week), or a temporary employee for up to 12 months. Since Jan. 1, 2025 there is no earnings limit for these jobs.Summary Plan Description (2026), p. 36; DPERS Retiree Newsletter (Aug. 2025), p. 1
- If you are under 59½, you must wait three months after retiring before working for any employer in the plan. No job can be arranged before you retire.Summary Plan Description (2026), p. 36, IRS Guidelines; 29 Del. C. §5502(d)(1)
Which jobs stop your pension
You cannot receive a SEPP pension for any month you work in a pension-creditable position with a participating employer; the pension and all associated benefits (health, dental, vision, prescription) stop until you retire again (new pension = first frozen pension + PRIs + second pension). You may work without losing the pension as a casual/seasonal employee (under 30 hours a week, or 30+ for no more than 12 months), a temporary employee for a finite project of up to 12 months, a daily substitute in a school, an elected or gubernatorial appointed official, a temporary justice of the peace, a per diem legislative employee, or an election official or juror. Summary Plan Description (2026), p. 36, Work Restriction; Office of Pensions workshop slides (Aug. 4, 2026), slides 36-37; 29 Del. C. §5502(a)-(b)
The wait if you are under 59½
If you are under 59½, you need a bona fide separation of at least three months after retirement before working for an employer in the plan. At 59½ or over no separation is required. No pre-arranged return to work is allowed at any age. Summary Plan Description (2026), p. 36, IRS Guidelines; Office of Pensions workshop slides (Aug. 4, 2026), slides 36-37; Return To Work Criteria page (saved Nov. 12, 2026); 29 Del. C. §5502(d)(1)
| Your age when you retire | Before working for an employer in the plan |
|---|---|
| Under 59½ | Wait at least 3 months (a real break, nothing arranged in advance) |
| 59½ or older | No wait, but nothing arranged before you retire |
The August 2026 retiree newsletter says retirees who have reached 59½ must wait three months. The law, the Summary Plan Description, the workshop and the Office of Pensions' return-to-work page all say the three-month wait is for retirees under 59½. We follow the law: under 59½, wait three months; at 59½ or older there is no wait, but a return still can't be arranged before you retire.
DPERS Retiree Newsletter (Aug. 2026), p. 1; Summary Plan Description (2026), p. 36; 29 Del. C. §5502(d)(1); Return To Work Criteria page (saved Nov. 12, 2026); DPERS Retiree Newsletter (Aug. 2025), p. 1Earnings limit
Since Jan. 1, 2025 there is no annual earnings limit for casual/seasonal, temporary or substitute work (the $50,000 limit applied in 2023-2024). DPERS Retiree Newsletter (Aug. 2025), p. 1, New Return-to-Work Rules; DPERS Retiree Newsletter (Aug. 2026), p. 1; 29 Del. C. §5502(d)(2)
Contractors
Contractors with a participating employer (or employees of a private firm under contract) who are under 65 need a 6-month separation under the statute; the Office of Pensions no longer requires the Certification of Worker Status form. 29 Del. C. §5502(e); Return To Work Criteria page (saved Nov. 12, 2026); DPERS Retiree Newsletter (Aug. 2026), p. 1
See also retiree health, Social Security and the calculator.
Questions
Can I substitute teach after I retire?
Yes. A daily substitute in a school keeps the pension, as do casual or seasonal and short-term temporary workers. If you are under 59½, wait 3 months after retiring first.
Is there an earnings limit?
Since Jan. 1, 2025 there is no annual earnings limit for casual/seasonal, temporary or substitute work (the $50,000 limit applied in 2023-2024).
What if I go back to a regular teaching job?
A full-time or regular part-time (pension-creditable) job with a participating employer stops your pension and retiree health until you retire again.
Source: State Employees' Pension Plan Summary Plan Description, 2026 edition (PDF dated May 14, 2026), p. 36. Also: Office of Pensions workshop (Aug. 4, 2026), slides 36-37; Office of Pensions Return To Work Criteria; DPERS Retiree Newsletter (Aug. 2025); DPERS Retiree Newsletter (Aug. 2026); 29 Del. C. § 5502. Last reviewed .