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Retirees Returning to Covered Employment
Retirees who return to covered employment will be rehired under Plan 1 or Plan 2 according to the plan under which they retired.
Upon employment in a covered position, the retiree's benefits must stop effective with the date of the new position. To avoid overpayment of the retirement benefit, you and the retiree must submit a Request for Termination of Monthly Benefit (VRS-7) 
32kb to VRS as soon as possible.
Counsel Employees About "Un-Retirement"
Counsel employees about the possible impact on a subsequent retirement benefit should they "un-retire" (retire and then return to covered employment). Upon subsequent retirement, the benefit calculation will include the additional service credit earned upon reemployment as well as any increase in average final compensation. In many cases, that will result in a higher subsequent benefit than the previous retirement benefit. However, depending on their circumstances, the next benefit may actually be less.
Examples
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If a retiree is receiving cost-of-living adjustments (COLAs) and returns to covered employment, the COLAs will not resume upon subsequent retirement. As a result, the subsequent benefit may be less than the previous benefit, especially if the retiree has been receiving the COLA for several years. The retiree will become eligible for a COLA effective July 1 of the second calendar year after his or subsequent retirement date. The COLA will be calculated as if the retiree is retiring for the first time.
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Employees who retired under a severance program administered by VRS will lose any additional retirement credits used to calculate their retirement benefit upon subsequent retirement. This may affect whether or not the retiree's next benefit is less than the current benefit amount.
Subsequent Retirement After Disability Retirement
Retirees on disability who return to covered employment will retire under service retirement when they retire again. The period of time they were retired on disability will be including in the calculation of their service retirement benefit. If a former disability retiree wishes to retire on disability again, he or she must reapply by submitting all required disability retirement forms and documents. The application will be evaluated under the medical review process based on the duties the new position.
