MARYLAND STATE RETIREMENT AGENCY
120 EAST BALTIMORE STREET
BALTIMORE, MD 21202-6700
410-625-5555 OR 1-80
0-492-5909
REEMPLOYMENT AFTER RETIREMENT FOR
RETIREES OF THE STATE POLICE RETIREMENT SYSTEM
RETIREMENT USE ONLY FORM 128 (REV. 7/19)
VIDEO: For an overview of this information, go to sra.maryland.gov, select YouTube or Vimeo and watch “Reemployment After Retirement.”
Keep your copy of this form on file as a handy reference for the future. You should also keep on hand your Notice of Retirement Allowance
that the Retirement Agency will send to you as a new retiree. The Notice of Retirement Allowance includes information such as the amount
of your monthly retirement allowance, the beneficiary you designated and your earnings limitation. To determine what, if any, earnings
limitation applies and the effect, if any, on your retirement allowance, you need your Notice of Retirement Allowance to identify the type of
retirement you are receiving (service, ordinary disability or special disability) and your earnings limitation. Then, apply the reemployment
rules. Reemployment earnings are the annual reemployment compensation reported to the IRS that the retiree received during a calendar
year. Note the reemployment rules do not apply while a retiree is participating in the State=s Deferred Retirement Option Program (DROP).
Under no circumstances should your decision to retire be condition
ed upon an offer of reemployment, and in fact, no offers of reemployment
should be discussed by you and your employer prior to your retirement. However, if after your retirement you consider reemployment with
an employer that participates in the State Retirement and Pension System (SRPS) you need to be aware of two important issues: Internal
Revenue Service (IRS) guidelines regarding reemployment and Maryland retirement law regarding reemployment.
INTERNAL REVENUE SERVICE GUIDELINES REGARDING REEMPLOYMENT
There can be significant consequences to you and the SRPS if you retire before the normal retirement age of your plan and/or before age
59 1/2, and are reemployed with the same employer without a bona fide separation of service. Please note that all units of Maryland state
government, including the University System of Maryland, are considered one employer.
The IRS can impose a significant tax penalty on your income if you are under the age of 59 1/2, retire and begin receiving your monthly
retirement benefits, and are reemployed by the same employer from whom you retired. In order to avoid this penalty there must be a bona
fide separation from service between you and your former employer.
If you retire before your normal retirement age, there are also
serious IRS consequences to the SRPS if a bona fide separation does not take
place following retirement and prior to reemployment with the same employer.
While the IRS has not specifically
defined what constitutes a bona fide separation from service, it is clear that the more differences between
your last job before retirement and the job being performed upon your reemployment, and the longer the break between the date of your
retirement and the date of your reemployment, the more likely it is that there has been a bona fide separation of service. If you are reemployed
to perform the same job, even if there is a reduction in your work schedule, this would not likely qualify as a bona fide separation of service
unless there is a lengthy break in employment. Even arrangements where you are rehired as an “independent contractor” may not meet the
IRS’ standard.
MARYLAND RETIREMENT LAW REGARDING REEMPLOYMENT
Maryland law requires that there must be a minimum of 45 DAYS between your retirement date and the date you are rehired by any employer
that is a participating employer in the SRPS. All units of Maryland State government, including the University System of Maryland, are
considered to be one employer under these reemployment rules.
Additionally, employment after retirement, under certain conditions, may cause your retirement allowance to be reduced.
SERVICE RETIREMENT
If you accept temporary employment (not in a regularly allocated position) with a participating employer*, you must notify the Board of Trustees
in writing of your intent to accept reemployment and the amount of your anticipated compensation. Temporary employment is defined as full
time for 6 months or less or part-time for the equivalent of 6 months or less. Your retirement allowance will be reduced if your post retirement
earnings exceed your earnings limitation. The benefit is reduced dollar for dollar up to a maximum of the full retirement allowance.
*A participating employer is any employer that offers State Retirement and Pension System benefits to its employees. A list of participating
employers is printed on page three. Before accepting employment, contact the State Retirement Agency for updates to this list.
(CONTINUED ON PAGE TWO)
I acknowledge that I have received this information about my obligation with regard to reemployment and I agree to notify the Board of
Trustees of my anticipated earnings should I return to work. I also understand that, should I exceed the earnings limitations imposed by law,
my monthly retirement allowance may be reduced or terminated until such time that any resulting overpayment of benefits is recovered. I
understand that I must be separated from any and all employment, including substitute, seasonal, temporary, contractual, and/or permanent
employment, with any employer that participates in the SRPS at the date of my retirement. By signing this form, I am certifying to the Maryland
State Retirement Agency that at the date of my retirement, I will not be employed in any capacity by any employer that participates in the
SRPS and that no discussions or offers of reemployment after my retirement have occurred between me and any employer that participates
in the SRPS.
_____________________________________________________ ___________________
Social Security Number Signature Date
sra.maryland.gov
Page 1 of 3
FORM 128 (REV. 7/19)
MARYLAND RETIREMENT LAW REGARDING REEMPLOYMENT
SERVICE RETIREMENT
(CONTINUED FROM PAGE ONE)
Reemployment rules for Service Retirement do not apply if you have been retired for more than 5 years.
DISABILITY RETIREMENT
Suspension of Disability Retirement: An Ordinary or Special Disability allowance shall be temporarily suspended if the
retiree:
Is not eligible for normal service retirement, and
Is employed by a participating employer as a probationary status law enforcement officer, a law enforcement officer,
or chief as defined in §3-101 of the Public Safety Article, and
Is receiving an annual compensation that is at least equal to the retiree’s average final compensation at retirement.
There is no additional benefit accrued while employed. If suspended, the retiree’s allowance will be reinstated on the first day
of the month following the month in which the retiree ceased employment with the participating employer. The retiree’s
allowance at time of reinstatement will be adjusted to reflect the accumulated cost of living adjustments during suspension.
Please note that the temporary suspension of disability benefit causes the temporary suspension of retiree health insurance
coverage.
Earnings Limitation for Ordinary Disability Retirees Only: An Ordinary Disability allowance shall be reduced if the retiree:
Is under normal retirement age, and
Is employed by a participating employer as a probationary status law enforcement officer, a law enforcement officer,
or chief as defined in §3-101 of the Public Safety Article, and
Is receiving an annual compensation that exceeds the retiree’s earnings limitation.
The reduction will be $1.00 for every $2.00 over the limit if the retiree has been retired less than 10 years. If the retiree has
been retired 10 years or longer, the reduction will be $1.00 for every $5.00 over the limit.
An earnings limitation does not apply for Special Disability Retirees.
If you have any questions, call a Retirement Benefits Specialist at 410-625-5555 or toll free 1-800-492-5909 to understand how
the reemployment provisions apply to you. We will make every effort to assist you in understanding your options, but it is your
responsibility to advise us of your reemployment.
Page 2 of 3
FORM 128 (REV. 7/19)
PARTICIPATING EMPLOYERS *
Maryland State Retirement and Pension System
State of Maryland
University System of Maryland
Baltimore City and All County Boards of Education (Teachers’ System)
Community Colleges and All Public Libraries (Teachers’ System)
Participating Governmental Units in the Employees’ System as of July 1, 2017
Allegany College of Maryland
Allegany County Board of Education
Allegany County Commission
Allegany County Housing Authority
Allegany County Library
Allegany County Transit Authority
Annapolis, City of
Anne Arundel County Board of
Education
Anne Arundel County Community
College
Berlin, Town of
Berwyn Heights, Town of
Bladensburg, Town of
Bowie, City of – Police Dept. (LEOPS)
Brunswick, City of
Calvert County Board of Education
Cambridge, City of
Caroline County Board of Education
Caroline County Sheriff Deputies
Carroll County Board of Education
Carroll County Public Library
Carroll Soil Conservation District
Catoctin & Frederick Soil
Conservation District
Cecil County Board of Education
Cecil County Government
Cecil County Library
Centreville, Town of
Chesapeake Bay Commission
Chestertown, Town of
Cheverly, Town of
College of Southern Maryland
College Park, City of
Crisfield, City of
Crisfield Housing Authority
Cumberland, City of
Cumberland, City of - Police Department
Denton, Town of
District Heights, City of
Dorchester County Board of Education
Dorchester County Commission
Dorchester County Roads Board
Dorchester County Sanitary Commission
Eastern Shore Regional Library
Edmonston, Town of
Emmitsburg, City of
Federalsburg, Town of
Frederick County Board of Education
Frostburg, City of
Fruitland, City of
Garrett County Board of Education
Garrett County Community Action
Committee
Greenbelt, City of
Greensboro, Town of
Hagerstown, City of
Hagerstown Community College
Hampstead, Town of
Hancock, Town of
Harford Community College
Harford County Board of Education
Harford County Government
Harford County Library
Housing Authority of Cambridge
Howard Community College
Howard County Board of Education
Howard County Community Action
Committee
Hurlock, Town of
Hyattsville, City of
Kent County Board of Education
Kent County Commissioners
Kent Soil and Water Conservation District
Landover Hills, Town of
La Plata, Town of
Lower Shore Private Industry Council
Manchester, Town of
Maryland Health & Higher Education
Facilities Authority
Middletown, Town of
Montgomery College
Morningside, Town of
Mount Airy, Town of
Mount Rainier, City of
New Carrollton, City of
North Beach, Town of
Northeast Maryland Waste Disposal
Authority
Oakland, Town of
Oxford, Town of
Pocomoke, City of
Preston, Town of
Prince George’s Community College
Prince George’s County Board of
Education
Prince George’s County Crossing Guards
Prince George’s County Government
Prince George’s County Memorial Library
Princess Anne, Town of
Queen Anne’s County Board of Education
Queen Anne’s County Commission
Queenstown, Town of
Ridgely, Town of
Rock Hall, Town of
St. Mary’s County Board of Education
St. Mary’s County Commission
St. Mary’s County, Housing Authority
St. Mary’s County Metropolitan Commission
St. Michaels, Commissioners of
Salisbury, City of
Shore Up!
Snow Hill, Town of
Somerset County Board of Education
Somerset County Commission
Somerset County Economic Development
Commission
Somerset County Sanitary District, Inc.
Southern Maryland Tri-County
Community Action Committee
Sykesville, Town of
Takoma Park, City of
Talbot Co
unty Board of Education
Talbot County Council
Taneytown, City of
Thurmont, Town of
Tri-County Council of Western Maryland
Tri-County Council for the Lower
Eastern Shore
University Park, Town of
Upper Marlboro, Town of
Walkersville, Town of
Washington County Board of Education
Washington County Board of
License Commission
Washington County Library
Westminster, City of
Worcester County Board of Education
Worcester County Commission
Wor-Wic Community College
*NOTE: The list of employers that participate in the Maryland State Retirement and Pension System (SRPS) is subject to
change at any time. This list is updated annually. To determine whether a particular employer participates in SRPS, call a
retirement benefits specialist at 410-625-5555 or toll-free at 1-800-492-5909.
Page 3 of 3
FORM 128 (REV. 7/19)
