Human Resources & Workforce Diversity

Rehired Annuitants Q&A

Questions and Answers for Employees
Considering Early Retirement and a Return to Work

After you retire from the University, you are permitted to go back to work with either a Wisconsin Retirement System (WRS) employer or with another employer. This page provides basic information about your benefits should you become a "rehired annuitant." Consult your staff benefits office if you have questions or are considering this step.

1.  Who is a rehired annuitant?

A rehired annuitant[1]:

  • Is age 55 or older (age 50 for protectives);
  • Is retired from the UW, another State of Wisconsin agency, or a local unit of government in Wisconsin that is covered by the WRS;
  • Is receiving an annuity from the WRS;
  • Had at least a 30-day break in service after retiring; and
  • Now works for the UW or another WRS-covered public employer.
An employee who previously received a lump sum separation or retirement benefit from the WRS is not a rehired annuitant.

2. When can an annuitant be rehired by a WRS employer?

An annuitant can return to work with a WRS employer after the required minimum 30-day break in service without affecting the annuity payments, however, the employer is not obligated to hire or rehire an annuitant. Prearranged agreements between the employer and the annuitant to return to work are not permitted. 

An annuitant can return to work any time after the minimum break in service. The minimum break in service begins on the employee’s termination date and ends on the latest of the following[2] :
  • The day after the annuity effective date; or
  • The 31st day after the termination date; or
  • The 31st day after ETF receives the benefit application.

3. Can an annuitant be hired for any position?

Yes, the annuitant is eligible to compete for any position, subject to the applicable hiring criteria. 

If the annuitant chooses to apply for a classified permanent position or an unclassified appointment, the annuitant must go through any required testing and interviewing process.

Rehired annuitants often accept LTE, project, or short-term academic staff appointments as a means to transition to retirement or may only want a short-term position, but they are not limited to those positions.

4. Is there a limit on the amount of earnings a rehired annuitant may receive?

For WRS purposes, there is no limit on the amount of earnings a rehired annuitant may receive. However, for those who are receiving Social Security benefits, there could be an earnings limit. Earnings in excess of this limit may create a substantial reduction to Social Security benefits. (Social Security site on earnings limits.) Rehired annuitants should contact their local Social Security Administration office for additional information and earnings reporting requirements.

5. Is the employer required to offer a rehired annuitant the option of WRS participation?

Yes, the employer must offer the rehired annuitant the option of stopping annuity payments and restarting WRS participation if the position qualifies for WRS participation.  For the position to qualify for WRS participation, the employee must be expected to work at least[3] :

  • One-third of full-time.  This means 440 hours per year for teachers (faculty and academic staff[4] ) and 600 hours per year for all other employment categories; and

  • One year (365 days or an academic year with the expectation of renewal).

An employee who at first does not qualify for WRS coverage can later meet these requirements if expectations change or at any time, one year or longer after hire, when the employee has worked 600 hours in the last 365 days.  This is known as the "look-back provision."

The employer cannot choose whether or not to enroll someone in the WRS if the employee is eligible. However, a rehired annuitant may decline WRS participation. 

A rehired annuitant who elects not to resume WRS participation will not earn WRS service credits or accumulate retirement contributions during the return to work and is not eligible for other benefits that depend on active WRS coverage.  Annuitants may be eligible for leave benefits as would any non-annuitant, providing they qualify.

IMPORTANT: The employer must submit a completed Rehired Annuitant Election form, ET-2319, to the Department of Employee Trust Funds (ETF) within one week (7 calendar days) after hire[5] or attainment of WRS eligibility under the rolling twelve-month “look-back” rule[6] .  State group health, life, and ICI benefits and most UW insurance programs are dependent upon the rehired annuitant’s WRS participation. 

6. What happens to the rehired annuitant’s annuity?

The annuitant has the following two options[7] : 

  • Cancel the monthly annuity payments. Once the annuity payments are stopped, the University will then contribute to the WRS and the employee will be eligible for active health and life insurance benefits and the other benefits for which WRS coverage is a prerequisite.  The employee will receive WRS credit for the time worked and the annuity payments will be recalculated to reflect the additional service when the employee again retires. 

Or

  • Choose to continue to receive annuity payments by declining WRS participation.  In this case, the annuitant will not be eligible for active health or life insurance benefits or the other insurance benefits for which WRS coverage is a prerequisite.  No WRS credit is granted for the time worked but the employee will continue to be eligible for annuitant health and life insurance coverage.

In this case, the annuitant receives the other benefits of the position that are not dependent on WRS participation, such as vacation and sick leave.  However, sick leave earned during the return to work cannot be converted to pay health insurance premiums in retirement.

7. What are the leave benefits for rehired annuitants?

An annuitant hired to a project position is eligible for the same leave benefits as other project enmployees in the same or like position. LTEs are paid for hours worked and do not earn paid leave.

Classified Permanent Positions

Note:  Leave benefits for classified represented positions may be affected by the applicable collective bargaining agreement.

Vacation:  A WRS annuitant who is hired into a classified permanent position is entitled to earn vacation whether or not the annuitant opts for active WRS participation.  The amount of vacation will depend on whether the individual has reinstatement eligibility under §230(31), Wis. Stats., ER 29.03 (6), or ER-MRS 16.035, Wis. Adm. Code.  If the rehired annuitant does not have reinstatement eligibility, vacation will be earned as a new State/University employee (except for career executives[8]).

At the time of retirement, any unused vacation will be paid as a lump sum or may be used to extend the termination date. Vacation carry-over is subject to same rules and regulations for rehired annuitants as for non-annuitants. 

Sick Leave:  The rehired annuitant is entitled to the same sick leave as any other employee in that position. 

If the annuitant elected not to participate in the WRS and continued to receive annuity payments, sick leave accumulated while a rehired annuitant cannot be converted to credits to pay health insurance premiums. 

If the annuitant cancelled the annuity payments and again became a WRS participant, sick leave earned while a rehired annuitant is converted to credits at the highest rate of pay and added to the prior sick leave account balance.

If the annuitant again becomes a WRS participant, sick leave credits granted at the time of the first retirement are held in escrow until the employee again retires.  At that time, the supplemental and basic credits are adjusted to reflect additional hours earned and additional supplemental credits based on additional years of continuous service[9] .

Sick leave already transferred to pay for health insurance premiums is not “reinstated” to the employee’s active employment record, therefore, a classified employee would not be able to use these credits for determining the ICI premium category.

Personal Holiday:  Classified employees (excepts Trades and UW-Milwaukee graduate assistants) receive 4.5 paid personal holidays each calendar year.* No one can receive more than one allotment per calendar year.

*Personal Holidays are a subject of bargaining for represented employees who have not reached a 2003-2005 contract agreement.

Unclassified Permanent Positions

Vacation:  Annual appointments that are eligible for sick leave will earn 22 days (176 hours) of vacation per year, prorated for part-time employment.

At the time of retirement, any unused vacation will be paid as a lump sum or may be used to extend the termination date.[10]   Vacation carry-over is subject to same rules and regulations for rehired annuitants as for non-annuitants.

Annual Leave Reserve Account (ALRA):  If the rehired annuitant in an unclassified position returns to UWS employment within the three-year reinstatement period and previously met the criteria for the Annual Leave Reserve Account (ALRA), he/she is eligible to utilize ALRA as a rehired annuitant[11] . This does not apply if the employment contract mandates use of earned leave during the term of the contract.

Sick Leave:  If the position qualifies for sick leave under s. UWS 19.02, Wis. Admin. Code (basically the same eligibility criteria as for the WRS), sick leave will be granted. If the rehired annuitant is returning to UWS employment within the 3-year reinstatement period provided in Unclassified Personnel Guideline 10.04B, he/she will accrue sick leave at the rate of 1 day per month (annual appointments) or 6 days per semester (nine-month staff), prorated as appropriate based on the percent of appointment.  If the rehired annuitant has no prior WRS unclassified appointments or returns after the 3-year reinstatement period, he/she is entitled to an initial entitlement of 22 days of sick leave, prorated for part-time employees.  Additional leave will be granted after 18 months as for all other unclassified permanent employees.

If the annuitant elects not to participate in the WRS and continues to receive annuity payments, sick leave accumulated while a rehired annuitant cannot be converted to credits to pay health insurance premiums. 

If the annuitant cancels the annuity payments and again becomes a WRS participant, sick leave earned while a rehired annuitant is converted to credits at the highest rate of pay while a state employee and added to the sick leave account for paying health insurance premiums. Sick leave credits granted at the time of the first retirement are held in escrow until the rehired annuitant again retires.  At that time, sick leave credits are adjusted to reflect additional hours and additional supplemental credits based on additional years of continuous service.

Personal Holiday:  Unclassified employees receive 4.5 days paid personal holidays each fiscal year. No one can receive more than one allotment per fiscal year.

LTE/Project Positions 

An annuitant hired to a project position is eligible for the same leave benefits as other LTE or project employees in the same or like position.  LTEs are paid for hours worked and do not earn paid leave.

8.  What other benefit plans are rehired annuitants eligible for?

If the rehired annuitant stops his/her annuity and resumes participation in the WRS:

The rehired annuitant is eligible to enroll in all benefit plans just as any other active employee in that same position who is enrolled in WRS.  If the rehired annuitant continued or converted coverage under any insurance plans at the time of the first retirement, that coverage must be terminated before enrolling in the plan as an employee.

If the rehired annuitant is age 65 or over, this may have an impact on Medicare Part B coverage as the employer plan will be the primary payer for health coverage.  The rehired annuitant should contact the local Social Security administration office for more information about how this employment impacts the Medicare Part B coverage.

If the rehired annuitant continues to receive WRS annuity payments:

The rehired annuitant is only eligible to enroll in salary reduction plans, such as the TSA and Deferred Compensation programs, Long-Term Care Insurance, the Employee Reimbursement Account (ERA), and the qualified transportation/commuter benefit.  

9. What if the annuitant goes to work for a non-WRS employer?

None of the annuitant’s benefits as a State of Wisconsin retiree will be affected.

The University of Wisconsin System does not discriminate on the basis of disability in the provision of programs, services, or employment. If you need this printed material interpreted or in a different form, or if you need assistance in using this service, please contact us at 608-265-5150.

University of Wisconsin System Administration
Human Resources Information Services
5901 Research Park Blvd.
Madison, WI  53719
www.uwsa.edu/benefits

UWS-70 5/06