During the COVID-19 pandemic, a record-breaking number of people retired. But as inflation rises and employers increase wages to attract workers amid a labor shortage, many retirees are returning to the workforce. This article from Governing Magazine discusses how many workers who retired during the pandemic are now looking to return to work because of stock market volatility, inflation, and even boredom, and how some cities are able to address their own workforce needs with people who are “unretiring.”

In Washington public sector workers who are covered by one of the State’s pension systems, who want to “unretire” need to review the restrictions on returning to work very carefully. Retirees earning a public pension and return to work in violation of the rules can be subject to paying back the pension system. The employer can also be liable for paying back both pension benefits and pension premiums if they are found in violation of the rules. Be sure to check with the Department of Retirement Systems (DRS) before unretiring or hiring back a retired worker. DRS’s website includes a link called “Returning to work” that employees and employers should review.

Employers can also check out this section of the DRS Employers Handbook. The rules are different for each pension program and can be different for those who took early retirement. Generally, for PERS 2 retirees they can work up to 867 hours per year without impacted their benefit; however, a LEOFF 2 retiree who returns to work in a LEOFF 2 covered position will likely have to stop receiving benefits.

Bringing back employees who have retired can be a great benefit, but be sure to know the rules going in.