Full-Time, Part-Time and Interim Employment

Retirees who want to work for a VRS-participating employer and continue to receive their retirement benefits must work in a non-covered position. Retirees who return to non-covered employment with the employer from which they retired also must have a bona fide break in service.

Non-covered positions do not provide eligibility for benefits. Most non-covered positions are part time. Employers, not VRS, classify positions as full time or part time and define the hours applicable to each classification, according to the following guidelines:

• Full-time employment is typically considered to be 40 hours a week. Thirty-two hours is the usual minimum number for a full-time position.

• Part-time employment typically requires less than 80 percent of the hours of a comparable full-time position.

• If retirees work in more than one part-time position for the same employer, the total number of hours must not exceed a part-time schedule.

• Some full-time positions may be considered non-covered if they are temporary and require less than 80 percent of the hours per year that would be considered full-time and permanent for that position.

In some cases, retirees can work on an interim basis for up to six months without interruption in their retirement benefits. Examples include hiring a retiree in a vacant position while recruiting for a full-time permanent employee or while an incumbent is on leave. If the retiree returns to the employer from which he or she retired, the retiree also must have a bona fide break in service. The Commonwealth of Virginia, including all state agencies and public colleges and universities, is considered one employer. School divisions and political subdivisions are considered separate employers.

Interim appointments are evaluated on a case-by-case basis. If you are considering hiring a retiree on an interim basis, please call VRS toll free at 1-888-VARETIR (1-888-827-3847) and ask to speak to your Employer Representative. If the position is still open after six months, you must contact your Employer Representative to discuss the retiree's continued eligibility for the interim appointment. Who is my Employer Representative?

If you hire a retiree in a position that would be considered covered and do not report the retiree to VRS, or if you hire a retired former employee in a non-covered position without a bona fide break in service, you may be liable for repaying any retirement benefits the retiree receives while working in the position. As provided in Section 51.1-124.9(B) of the Code of Virginia, VRS is authorized to collect benefit overpayments from the employer, not the retiree, in cases where the employer does not comply with return-to-work provisions. This section also provides for the collection of overpayments from the employer if the employer grants a salary increase to a retiree not related to a promotion and the primary purpose is to increase the retiree's benefit.