Non-IPERS-Covered Employer
If you retire and return to work for a non-IPERS-covered employer, or for an IPERS-covered employer in a position that is not IPERS-covered, there are no restrictions on earnings. Your earnings do not affect your IPERS benefit. However, Social Security has certain income limitations that apply to your Social Security benefit.
IPERS-Covered Employer
If you retire and return to work for an IPERS-covered employer, in an IPERS-covered position, the following rules apply:
Age 65 or Older
There is no limit on the amount you can earn. Your benefit payment is not affected by your earnings.
Age 55 to Age 65
If you return to IPERS-covered employment after completing a bona fide retirement, your earnings will be subject to an annual earnings limit. The limit does not apply if you are an elected official or a member of the Iowa General Assembly. Currently, the annual earnings limit is $50,000 of IPERS-covered wages per calendar year or the annual Social Security wage limit, whichever is higher. These wage limits may change each year. Review these at www.ssa.gov.
You do not pay contributions to IPERS for all types of compensation, but these wages count toward the annual earnings limit: bonuses, allowances and employer contributions to defined contribution and deferred compensation retirement plans.
Each year IPERS reviews the amount you earned in the previous calendar year. If you exceed the earnings limit, you have two choices:
- Write a check to IPERS for the full amount owed.
- IPERS will reduce your monthly benefit until we recover the amount owed. The reduction is equal to 50 cents on the dollar for each dollar that exceeds the earnings limit. For example, if you exceeded the limit by $10,000, IPERS will reduce your benefit by $5,000.
If you know you will exceed the earnings limit, and you want to avoid repayment or a benefit payment reduction, you can send IPERS a letter requesting suspension of your retirement benefit payment for the next calendar year. IPERS will automatically reinstate your payment at the start of the next calendar year.
If you die before you provide repayment or before IPERS withholds what is owed, IPERS will deduct the remaining amount from the death benefit payment to your beneficiary(ies). If you selected a retirement benefit payment option with no death benefits, or if the death benefit is less than the amount owed, IPERS will charge your estate.