The Teachers' Retirement System (TRS) Board of Trustees in Illinois convened on January 1, 2025, to discuss important guidelines regarding retirement and post-retirement employment for educators. The meeting focused on the rules that retirees must follow if they wish to return to work in TRS-covered positions after retirement.

The session began with an emphasis on the necessity for retirees to receive their first TRS pension check before returning to any TRS-covered job. This is crucial as working prior to receiving the first check could result in losing summer benefits and altering the official retirement date, which could be financially detrimental.

The board outlined that retirees must wait for a processing period of 60 to 90 days for their first pension check. Additionally, there is a legal requirement that mandates a 30-day break from employment with the last school district to be considered a retiree for tax purposes. The board advised against prearranging post-retirement employment with the last employer, emphasizing that no written agreements should be signed until after the first pension check is received.

The current limit for post-retirement work is set at 120 days per school year, which runs from July 1 to June 30. If retirees work fewer than five hours per day, those hours will count toward a 600-hour limit. This extension is valid through June 30, 2026, although the permanent law allows for 100 days or 500 hours of work per school year.

The board also addressed the implications for retirees who have reciprocal service with other pension systems, such as the Illinois Municipal Retirement Fund (IMRF) or the State Employees' Retirement System (SERS). Retirees must adhere to the post-retirement work limits of both systems to avoid suspension of benefits.

For Tier 2 retirees, additional restrictions apply, as they cannot return to full-time public employment within any reciprocal systems in Illinois. However, there are no limitations on employment outside of TRS-covered work, including private sector jobs or positions in other states.

In conclusion, the meeting provided essential information for educators planning to retire and consider post-retirement employment. The board's clear guidelines aim to ensure that retirees understand the rules and avoid potential pitfalls that could affect their retirement benefits.