When you are ready to retire again after returning to work with an IPERS-covered employer, you must contact IPERS to have your retirement benefits recomputed to include any additional benefits you earned during your reemployment.
Your reemployment period (the period you work after you retire) is considered a separate period of service. The recomputation formula will be adjusted so that no more than 30 years of service are used in the calculation. Any benefits you receive for reemployment will be calculated separately — even though they may be treated as part of your original benefit for income tax purposes. You may have the second benefit added to the initial monthly payment or receive a one-time lumpsum payment.
If you end reemployment and do not request a monthly payment or lumpsum payment within a year, a lumpsum payment may be paid to you automatically. If your reemployment period is less than seven years (or if your reemployment period took place before July 1, 2012, and was less than four years), the formula used to recalculate your additional benefits is different from the standard formula. Your benefits will be determined using a money purchase formula that is based on the amount of contributions you made while reemployed.
If you began receiving monthly pension payments at age 70 without terminating your employment, you can have IPERS recalculate your initial monthly payment when you actually retire from your IPERS-covered position. IPERS uses the standard benefit formula, calculating all of your years of service as part of the original benefit, to recompute your monthly payment. Be sure to contact IPERS when you terminate your IPERS-covered employment.
Death before recomputation
If you are retired, have become reemployed and die before benefits are recomputed because of reemployment, your designated beneficiary will be eligible for additional death benefits based on your reemployment wages.