Your original pension is not affected during reemployment, unless you return to work in an Ohio public sector position within two months of your retirement date. If this happens, you will forfeit pension payments only for that two-month waiting period.
If you return to work in a position covered by SERS, OPERS, STRS, Ohio Police & Fire Pension Fund, or Ohio Highway Patrol Retirement System, you must wait two months from your effective retirement date before reemployment.
Exception for Multiple Positions: If you held multiple positions prior to retirement, you may continue working in the lesser-paying position(s) without forfeiting two months of pension payments.
Returning to work in a private sector job covered by Social Security does not affect your SERS pension. However, private sector employment could affect your SERS health care eligibility.
If you are reemployed in a SERS-covered position, you must contribute to SERS just as you did before retirement. Because your original pension amount is set, your new contributions will create a separate benefit paid as a single life annuity. You may choose to receive it as a one-time lump-sum payment or fixed monthly payments for life. There are no cost-of-living adjustments on this annuity.
Reemployment may temporarily affect your eligibility for SERS health care coverage. Once reemployment ends, your eligibility is restored and you have 31 days after employer coverage ends to re-enroll in SERS coverage.
Individuals who are affected:
You will lose SERS health care eligibility when you are eligible for medical and prescription coverage through your new employer, or when you are not eligible for coverage but employees in comparable positions are eligible at the same cost as full-time employees.
Individuals who are not affected:
You will not lose SERS eligibility if you do not have access to employer coverage, or if costs for employees in comparable positions are more than what full-time employees pay.
When reemployment ends, you are eligible to receive a portion of the retirement contributions made during that period as an annuity consisting of your employee contributions, a portion of employer contributions, and interest.
You will receive your benefit as a single life annuity. You can choose a one-time lump-sum payment or monthly payments (if the monthly amount exceeds $25). The monthly annuity is paid for life at the same amount, with no COLA or survivor plans available.
If you die before receiving what would have been the full value of the lump-sum payment, the remaining balance is paid to your beneficiary in a single payment.
If you take your funds immediately, you will receive only a return of your 10% employee contributions as a single lump-sum payment.
Multiple Annuities: You can earn more than one annuity over time. However, only one additional annuity or lump-sum payment may be applied for or received every 12 months.
If you die before receiving an annuity or refund of contributions, a lump-sum payment is available to your beneficiary. If no beneficiary is designated, payment is made in order: spouse, children (equally), parents (equally), estate.
If this order does not reflect your wishes, request a Designation of Beneficiary Reemployed Annuity Account Form from SERS.
SERS is required to withhold federal income taxes from lump-sum annuity payments and refunds of contributions. If your employee contributions are tax-deferred, the entire lump-sum payment is taxable. For any untaxed portion, the withholding rate will be 20% unless rolled over to an IRA. Monthly annuities are withheld based on married with three exemptions. Additional tax information is provided at the time payment is issued.
