For a member to be entitled to retirement benefits, both federal and state retirement law requires a bona fide separation from service. Any pre-existing agreement to return to work after retiring from any of the defined benefit funds that INPRS administers, including PERF and TRF, to a covered-position with the same or another participating employer is prohibited.
A pre-existing reemployment agreement exists when prior to a member submitting their retirement application, the member and employer make any understanding—formal or informal—that the member will return to work without a bona fide separation of service.
Pursuant to Ind. Code § 5-10.2-4-8, if INPRS determines a retirement occurred under a prohibited reemployment agreement:
- The member’s application for retirement benefits will be void;
- The member’s retirement benefits will stop and the member will be required to repay the amount of the retirement benefits received;
- The member will make contributions;
- The member’s employer will make contributions; and
- The member will earn creditable service.
When the member’s reemployment terminates, the member may again file an application for retirement benefits.
If you or your employee(s) have any questions, please contact the EA team at 888-876-2707.