- To work for an NMERB employer after retiring, you must apply and get NMERB approval before you start. There are three programs: 60 months (no earnings limit, 90-day layout, nonrefundable contributions); 0.25 FTE or less (no layout); and less than $25,000 per fiscal year (90-day layout).Member Handbook 2025, pp. 25-26, Working after Retirement
- The old 12-month layout program closed to new applicants on January 1, 2024. In 2025 the earnings limit rose from $15,000 to $25,000 and the time limit from 36 to 60 months.Member Handbook 2025, p. 25; NMERB web page Recent Legislation; SB 133 (2025)
- Breaking the return-to-work rules can suspend your pension and make you repay what you received while ineligible. Work for employers outside the Educational Retirement Act (private sector, other governments, out-of-state schools) does not affect your pension.Member Handbook 2025, pp. 25-28
Approval comes first
A retiree may work for an NMERB employer (local administrative unit, LAU) only after applying for and receiving NMERB approval in a Return to Work (RTW) program and giving the employer a copy of the approval. RTW employment earns no service credit. Violations can mean suspension and repaying benefits received while ineligible. Member Handbook 2025, p. 25, Working after Retirement
The three programs
| Program | Limit | Layout |
|---|---|---|
| Return to Work 60 Months ProgramContributions: You and your employer | No more than 60 months | 90 days |
| Return to Work 0.25 FTE or LessContributions: None | 25% of full time or less | None |
| Return to Work Less Than $25,000Contributions: None | Less than $25,000 a fiscal year | 90 days |
- Return to Work 60 Months Program: No more than 60 consecutive or nonconsecutive months. 90 consecutive day layout after retirement. No limit on earnings or FTE. Retiree and employer pay contributions; the retiree's are nonrefundable and earn no service credit. Member Handbook 2025, pp. 25-26, Option 1: Return to Work 60 Months Program
- Return to Work 0.25 FTE or Less: Work 25% or less of the FTE of the position, combined across all NMERB employers. No layout period. No contributions. Exceeding 0.25 FTE means suspension, repayment of benefits received while ineligible, and return to active status. Member Handbook 2025, p. 26, Option 2: Return to Work 0.25 FTE or Less
- Return to Work Less Than $25,000: Gross earnings from all NMERB employers must be less than $25,000 per fiscal year (July 1 - June 30), including bonuses and leave payouts but not expense reimbursements. 90 consecutive day layout. No contributions. Earning $25,000 or more means suspension, repayment and return to active status. Member Handbook 2025, p. 26, Option 3: Return to Work Less Than $25,000
Retiree and employer must make retiree health care (NMRHCA) contributions while working under any RTW program. NMERB web page RTW Comparison Table; NMSA 1978, §22-11-25.1(G) (See retiree health.) Still deciding whether to retire at all? See one more year.
Checking a plan against the limits
| Plan | Allowed? |
|---|---|
| $24,999 in a fiscal year, after a 90-day layout | Yes |
| Exactly $25,000 in a fiscal year | NoEarnings must be less than $25,000 per fiscal year. |
| Starting on day 89 of the layout | NoNeeds a 90-day layout after retirement. |
| Month 61 under the Return to Work 60 Months Program | NoNo more than 60 months under this program. |
The limit is "less than": $25,000 itself is too much. Member Handbook 2025, p. 26, Option 3: Return to Work Less Than $25,000
What changed, and what closed
The Return to Work 12 Consecutive Month Layout Program (§22-11-25.1(A)) is closed to new applicants from January 1, 2024. Participants before then may stay until they withdraw; once withdrawn they cannot return to it. Member Handbook 2025, p. 25, Note; NMERB web page RTW Comparison Table
2.82.5.17 and 2.82.5.18 NMAC (eff. 07/01/2024) still say 'less than $15,000' and '36 months'. SB 133 (2025) changed §22-11-25.1(H) and (I) to less than $25,000 and 60 months; the handbook and web pages use the new limits. Our calculator uses the statute and handbook. The handbook also says the 60-month program is 'effective May 18, 2022' (the date the 36-month program began under Laws 2022, ch. 20); the 60-month limit came from SB 133 in 2025.
2.82.5.17-.18 NMAC; SB 133 (2025) §1; Member Handbook 2025, pp. 25-26; NMERB web page Recent Legislation
The fine print
- 0.25 FTE: apply any time after the retirement date. $25,000 and 60-month programs: apply up to 30 days before the layout ends (a July 1 retiree may apply September 1). NMERB web page Returning to Work after Retirement, Q&A
- Once a year: apply between July 1 and July 31; the change takes effect August 1. Member Handbook 2025, p. 27, Changing Return to Work Programs; 2.82.5.15(I) NMAC
- From July 1, 2024 a retiree who starts work without approval has 30 days from NMERB's notice to quit or apply for the right program. Member Handbook 2025, pp. 26-27, Failure to Submit a Return to Work Application; 2.82.5.15(C)-(E) NMAC
- Work for employers not covered by the ERA (city, state, county, federal government, private schools, BIA schools, public schools outside New Mexico, private sector) does not affect the pension. Exception: a licensed educator cannot work for a state agency education program until the 90-day layout is done and an RTW application is approved. Member Handbook 2025, p. 28, Non-NMERB Employment
- Independent contractor work for an NMERB employer, directly or through a third party, needs NMERB approval at least 15 days before starting; it does not count toward the layout. Member Handbook 2025, pp. 27-28, Independent Contractors
- A retiree may suspend retirement and return full time, contributing and earning service; on re-retirement the benefit is recalculated and never less than before. The B or C option chosen at first retirement cannot be changed. Member Handbook 2025, p. 28, Suspending Retirement; NMSA 1978, §22-11-25
- A member who completes the academic or fiscal year and retires before July 1 is not entitled to July and August benefits if they return to employment at the start of the next academic or fiscal year. 2.82.5.10(B) NMAC
NMERB has no DROP. No DROP (deferred retirement option plan) appears in the Member Handbook 2025, NMERB's saved web pages or the Educational Retirement Act. Retirees who go back to work use the return-to-work programs instead. Member Handbook 2025 (no DROP section); NMSA 1978, §§22-11-1 to 22-11-55 (no DROP provision) Closed to new applicants since January 1, 2024: the 12-month layout program. Estimate your pension first with the calculator.
Questions
Can I work for a New Mexico school after I retire?
Yes, but only after NMERB approves you for a Return to Work program. Return to Work 60 Months Program: No more than 60 months; Return to Work 0.25 FTE or Less: 25% of full time or less; Return to Work Less Than $25,000: Less than $25,000 a fiscal year.
What is the earnings limit for NMERB retirees?
Under the Return to Work Less Than $25,000 program your gross earnings from all NMERB employers must be less than $25,000 each fiscal year (July 1 to June 30), after a 90-day layout. The Return to Work 60 Months Program has no earnings limit.
Is the 12-month layout program still open?
No. The Return to Work 12 Consecutive Month Layout Program (§22-11-25.1(A)) is closed to new applicants from January 1, 2024. Participants before then may stay until they withdraw; once withdrawn they cannot return to it.
Source: NMERB Member Handbook, 2025 edition, pp. 25, 25-26, 25-28, 26, 26-27, 27, 27-28, 28. Also: NMERB web pages 'RTW Comparison Table', 'Recent Legislation', 'Returning to Work after Retirement'; SB 133 (2025); 2.82.5.15- NMAC; NMSA 1978 §§ 22-11-25, 22-11-25.1; 2.82.5 NMAC. Last reviewed .