Changes to rules for employment after retirement

Recent shortages in staffing during the COVID pandemic have caused the New Jersey Legislature to make some changes in the rules governing retirees retuning to public school employment.

The first change allows certified school nurses to return to public school employment for up to two years after a bona fide retirement. For the provisions of what constitutes a bona fide retirement, see the box below. The provisions are similar to administrators who return to work as interims while continuing to collect a pension. A contract issued by a local board of education to a retiree employed as a certified school nurse may not exceed one year but may be renewed for one additional year with that board of education.

The second change, which was passed by the Legislature and signed into law in January, allows for retired teachers or any professional staff member who provides special services to return to public school employment without being reenrolled in the pension system. The school district must show a critical need, as determined by the commissioner of education, when seeking to reemploy a retiree.

The provisions are similar to the restrictions for school nurses in that the retiree must have a bona fide retirement. A contract issued by a local board of education to a retiree employed as a teacher or any professional staff member may not exceed one year but may be renewed for one additional year with that board of education. Anything beyond that second year would have to be approved by the commissioner of education.

Unlike the school nurse provision, this change is only applicable for the remainder of the 2021-22 school year or the 2022-23 school year. If you have any questions, call the New Jersey Division of Pensions and Benefits at 609-292-7524.

Here is what constitutes a bona fide retirement:

1. For reemployment in the district the member retired from:

  • There can be no employment, including part-time, volunteer or sub contracted work, for a period of 180 days from the date of retirement or the date the pension board approves the retirement, whichever is later.
  •  The 180-day count begins Sept. 1 for July 1 retirees who were 10-month employees.
  •  No prearrangement of reemployment until the 180-day count has been completed.

2. For reemployment in a New Jersey public school district other than the one the member retired from:

  • No employment, including part-time, volunteer or subcontracted work, for a period of 30 days after the pension is due and payable.
  • No prearrangement of reemployment until 30 days after the pension is due and payable.

Note: Due and payable means the retirement has been approved by the board of trustees and no changes were made in the beneficiary or option after the retirement date. If you have any questions, you can contact the NJ Division of Pensions and Benefits at 609-292-7524.

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