Last week PERAC released a memo to all retirement boards announcing that the earnings waiver enjoyed over the last three years expired on 12/31/22. Although we are filing legislation to provide relief, members are reminded of the current law. Retirees who left before 2022 are allowed to make the difference between their pension and the current pay for the job they left plus $15,000 OR 1200 hours whichever is less. Emphasis on OR.
Those that retired at any point in 2022 are not allowed the additional 15,000 until calendar year 2024. Be mindful any excess earnings may be subject to forfeiture to the retirement board or the municipality. We are already in talks to find a remedy but chances are that even is successful won’t come until late this year. Given this outlook, we advise members to monitor their earnings for 2023 and be sure to stay below the limits.
Jim Machado
Executive Director