Returning to Work

Retirees can return to work at the discretion of an employer under certain conditions through TRS’s return-to-work programs that apply to all TRS employers. All return-to-work programs are limited by law and are used at the employer’s discretion. Return-to-work requirements also apply to someone working as an independent contractor for a TRS employer or for a third party that is contracting with a TRS employer.

Rules for TRS retirees returning to work with a TRS employer are made up of Kentucky Revised Statutes 161.605 and the Kentucky Administrative Regulations. The law and regulations govern in the event of any unintended conflict between them and the information on this page and its links. Rules also differ based on when a person retired and for what type of TRS employer the retiree intends to work. A TRS 1, TRS 2 or TRS 3 retiree returning to work in a new account on or after Jan. 1, 2022, will be in a TRS 4 account; TRS 4 retirees are not eligible for a return-to-work account. The links below cover most situations retirees will face. Less-common situations are described below.

Options chart

Common questions and answers:

For retirees returning to work with a TRS non-university employer

For retirees returning to work with a TRS university employer

Click these links for more information on this page about …

Returning to Work in a TRS Non-university Position and Your Second Retirement Account

If you return to work with a TRS non-university employer in the part-time, full-time or critical shortage programs, you will start contributing to a second retirement account. After earning five years of service credit, you may retire this account and receive another lifetime annuity.

If you terminate your employment before earning five years of service credit, you may apply for a refund of your account. Account refunds may be rolled over to another qualified retirement savings plan or paid to you. You may call for a refund application at 800-618-1687.

Minimum Daily Wage Threshold (DWT) Amount

Your daily wage threshold cannot be less than $200 a day. When a DWT is calculated and is less than $200 it will be increased to $200 per day as the maximum allowable earnings for a full day of work in a TRS position.

Additional Details for Retirees who Returned to Work and Waived Their Retirement Annuity

  • If you remain on waiver less than one full contract year, your contributions will be refunded at the end of the waiver period.
  • Reductions that were applied during your initial retirement also may be reduced or eliminated depending on how many years you return to work on waiver.
  • Recalculations do not incorporate cost-of-living adjustments assigned to your annuity prior to your return to work on waiver.

Additional Details for University Retirees Returning to Work

If you work 3.5 hours or less in a day, TRS considers that as half day toward the 100-day limit. If you work more than 3.5 hours, TRS considers that as one day toward the 100-day limit.

Reminders for Retirees

  • The waiver program is available for any member retired by reason of service to return to full-time employment under certain circumstances in a TRS-covered position that is on the certified salary schedule.
  • Exemption requirements for retirees returning to work with a non-university employer apply to contractors and their workers.
  • Retired members returning to work and starting a new retirement account will not be entitled to a second set of benefits for health insurance, life insurance or an adult handicapped child; nor will they be eligible for disability retirement or survivorship benefits with this new account.
  • New accounts are separate entirely from first accounts, including that no service credit for time before an earlier retirement may be purchased in a new return-to-work account.
  • Any TRS retiree who has questions about the break-in service-requirements and or the daily wage threshold should contact TRS before returning to covered employment. 
  • It is your responsibility when returning to work to meet all the requirements for the option you’re choosing.
  • Breaks in service apply whenever a member moves to retired status regardless of whether the member has been on waiver or is retiring a second (or subsequent) account.