There are many occasions when rehiring
retired employees, either those retired specifically from Binghamton
University or other state agencies, is important and valuable. When
they are hired by the University, until they reach 65 years of age,
they are limited in the amount of compensation they can be paid each
calendar year. In addition, the Human Resources Office is required to file required
paperwork and documentation on behalf of the employee hired to ensure
that compensation is within established law and there is no disruption
in the retiree’s pension. It
is also important to note that there are limitations on the compensation
a retiree may earn from the perspective of the social security administration
as well. Retirees who continue to work should check
with that office separately about those rules.
For
ease of explanation, this procedure will divide categories of rehired
public employees into two groups, since all rehires will fall into one
of the two categories. Group
1 is comprised of individuals who were formerly employed by the New
York State government, which includes the State University system, while
Group 2 is composed of those who were employed by one of the following
separate and distinct employers: a
political subdivision of the state (a county or a city), a public corporation,
a school district, a community college, the Board of Cooperative Educational
Services, a county vocational education and extension board or an agency
or organization which contributes as a participating employer to a retirement
system administered by the State or any of its civil divisions.
Retirees
in Group 1
Sections
212 of Retirement and Social Security Law
Retirees in this group may be hired by
the University and thus rehired by the State of New York. The hiring must be accomplished in accordance
with the relevant sections of the Retirement and Social Security Law,
which establish parameters for the amount of compensation that can be
earned. Section 212 is the most
often used portion of the law for rehiring of retired individuals, unless
the dollar amount is operationally envisioned as higher than allowed
under this section. This portion
of the law specifies a set dollar figure a rehired retiree can earn
in a calendar year, which is generally increased each year.
For the year 2008, the maximum earnable under this section is
$30,000.
Section 211 of Retirement and Social Security Law
Section 211 of the law uses a formula
to discern the maximum amount that the retiree can earn per calendar
year upon retirement. For a
section 211 rehire, the maximum calendar year earnings cannot exceed
the difference between the maximum employee’s retirement allowance
and the salary which would have been earned by the retiree had employment
continued in their former position, rounded up to the next multiple
of $500. Thus, an employee who
retired from a position two years ago, then paying $30,000 annually
and whose maximum retirement pension would be $21,000 could earn a maximum
salary of $9,000. It is important
to remember that the figure used in this calculation MUST reflect the
maximum retirement dollar amount the retiree COULD have accessed in
retirement, even if they did not choose that option.
If hiring a retiree under section 211, a search MUST be conducted
and it must be concluded that this retiree is the best qualified person
to do the work at hand. Evidence
of that search and the process is something that can be and often is
reviewed in audits. Contact the Human Resources for guidance in
this regard.
In general, retired public employees may
be rehired for no longer than a period of two years at any one time. In the case of Bartle professors, the Human
Resources Office will need to renew the employment of these individuals
in two-year increments as necessary.
It is important to note that if a retired state employee earns
in excess of what is allowable under either of these sections of the
law, a dollar for dollar decrease in the employee’s retirement
allowance will result. Rehired public employees may not participate
in retirement programs in which the University itself participates.
In order to facilitate hiring of a retiree in this category,
the department must input the information into the appropriate web form
and the required information must be input into Oracle HR. In addition, the retiree should be informed
of their obligation to complete the required form, the UP 211 form. This form is inspected by the Human Resources
Department and approved by the President.
Retirees
in Group 2
Retirees in Group 2 sometimes fall under
different rules than those in Group 1.
A good rule of thumb is if the potential retired public employee
is receiving a pension check from the State of New York, before accepting
employment with the University, they should call their retirement system
to assure they understand maximum earnings.
While in some cases, they are exempt from the earnings of limitations
described above, that may not always be the case. For example, in some cases, a retired employee from the City of
New York, a school district, a community college, or a county may be
appointed to a position in the University at an appropriate salary for
the position without any reduction in retirement allowances.
However, as in the case of the individuals
in Group 1, they can be appointed for a period of up to two years at
a time and must be renewed accordingly.
They may not participate in retirement programs in which the
University itself participates.
Contacts:
Employment Team, 7-6948
Employment Team, 7-6625
Benefits Team, 7-4850
Associate Director of Human Resources, 7-2187
