Pathway to Retirement

Whether you are several years from retirement or ready to make that decision, here is a quick guide to take you through the process.

Path to Retirement

Return To Work

The below information pertains to retirees returning to work for State of Delaware agencies and school districts only. Retirees returning to work for private companies or in other states do not have any restrictions.

Special information for ALL retirees regardless of age or date of retirement:

RETURNING TO WORK IN A PENSION CREDITABLE POSITION AT ANY TIME AFTER
YOUR RETIREMENT WILL STOP YOUR PENSION AND ALL ASSOCIATED BENEFITS.

Special information for ALL individuals preparing to retire:
You cannot have ANY arrangement in place prior to your retirement effective date to return to service in any capacity, including as a volunteer, an employee, an independent contractor, working for a third-party contractor or working for a temporary agency, for your current employer or any other State of Delaware agency, school district, college, or university that participates in the same pension plan from which you are retiring. Any discussion of returning to work, applying for positions with, or interviewing for an agency or school district under your same pension plan prior to your effective date of retirement will result in the suspension of your pension benefit for the duration of that employment.

This is an Internal Revenue Service regulation and applies regardless of your age at the time of retirement.

Special information for individuals preparing to retire under the age of 59 ½:
Retirees who are younger than age 59 ½ at retirement must have a three-month break from direct employment before returning to work for any organization that participates in the pension plan from which he/she retired. This includes working as or for a contractor who contracts with the State of Delaware. This also includes working for a State of Delaware agency or school district through a temporary employment agency.

Retirees who fail to comply with this separation requirement will have their monthly pension suspended. In addition, the retiree will have to repay any monthly pension benefits paid for any month the retiree did not meet the requirements.

Special information for retirees returning to work to ADD TO their pension:
Retirees returning to work in a pension creditable position should be aware that while they will be adding to their pension, they cannot work in a pension creditable position AND collect a pension at the same time. To further clarify, retirees returning to a pension creditable position will have their pension and all associated benefits suspended for the duration of that employment.

Additionally, the pension cannot be prorated. As such, a retiree’s effective date of rehire into a pension creditable position is very important. To ensure that they receive the maximum pension benefit possible, retirees want to ensure that their date of rehire is as close to the first of the month as possible. Because whether a retiree is rehired on the 1st or the 15th or the 25th of the month, they are not entitled to their pension or any associated benefits in that month. This includes any medical, dental, vision, or prescription benefits associated with their pension.

RETIREES WHO WORK IN A PENSION CREDITABLE POSITION AND COLLECT A PENSION IN THAT SAME MONTH WILL BE RESPONSIBLE FOR REPAYMENT OF THE PENSION BENEFIT.

Special information for retirees returning to work who DO NOT WANT TO DISRUPT their pension:
Retirees who wish to return to State employment without disrupting their pension benefit should seek employment in positions that are NOT pension creditable such as the ones listed below:

• Casual/Seasonal: Positions requiring fewer than 30 hours of work per week
• Temporary: Positions requiring more than 30 hours of work per week but for a finite period of less than 12 months.
• Substitute: Positions needed only on a per diem basis.
• Adjunct: Teaching positions that are part-time, limited-term, or contractual on a semester to semester basis. Not eligible for tenure or to contribute to the pension plan.
• Contractual: Limited term positions, working as either a direct or indirect contractor, that are not eligible to contribute to the pension plan.
• Neither independent nor third party contractors are any longer required to complete the Certification of Worker Status form.
• Miscellaneous Wage: Part time or limited term positions that are not eligible to contribute to the pension plan. These positions are specific to University of Delaware.

Other ways for retirees to NOT DISRUPT their pension:

• Work under a different pension plan than you retired from: Retirees from State agencies and/or school districts can work for a County or City office without disrupting their pension.
• Work in private industry: e.g. DuPont, Walmart, Walgreens, etc.
• Work in another state altogether: e.g. MD or PA state agencies or school districts

The Office of Pensions’ Return to Work rules and regulations ensure compliance with the regulations of the Internal Revenue Service and allow our retirement system to maintain its tax qualified exempt status.

The Public Integrity Commission (PIC) oversees the State’s post-employment restriction which speaks to whether a retiree can ethically return to work without violating Delaware’s Code of Conduct. In some PIC instances, you may not contract with the State or work for a State contractor, for 2 years after your separation date. If you have questions about these post-employment restrictions, you should PIC directly at (302) 739-2399.

Be aware that having a determination from the Public Integrity Commission does not exempt a retiree from adhering to the DPERS Return to Work criteria. Whether a retiree can ethically return to work and whether a retiree can return to work without compromising his/her pension eligibility are separate and distinct issues.

Disclaimer: If there is any conflict in interpretations between this summary and existing law, the law governs.

Retirement Group Counseling

Employees within 1-2 years of retirement should consider attending a Retirement Group Counseling session.

Retirement Group Counseling session can be viewed at the presentation using the link below.

Learn more

Latest News

Summer 2025 Retiree Newsletter
Find out what's new for the Delaware Retirement System. Read about it here.