Working After Retirement - Earnings Deductions

• Prior to full retirement age, some or all of tier I and all of vested dual benefit reduced if earnings over certain amounts
• Reduction eliminated once full retirement age attained

Notes:

• Work deductions apply to all employees and spouses under full retirement age regardless of the employee’s years of service. 60/30 annuitants are subject to work deductions until they reach full retirement age.
• Prior to year full retirement age attained
  • There is a deduction of $1 for every $2 earned over annual exempt amount ($14,160 in 2009).
• In year full retirement age attained
  • Deduction is $1 for every $3 earned over annual exempt amount ($37,680 in 2009).
  • However, earnings only considered through month before full retirement age attained.
• No deduction once full retirement age attained.
• Spouse is subject to tier I deduction not only for spouse’s excess earnings, but possibly for employee’s as well.
• Spouse annuity not payable if employee annuity not payable.
• An annuity to a divorced spouse or a partition payment may be made despite the employee’s work activity.