You may return to work after retirement with no restrictions from SURS. There is not a 60-day waiting period.
There is neither a monthly nor annual earnings limitation. If you return to a SURS-covered employer in any capacity after taking a retirement distribution, you will not contribute to SURS.
If your employment with a SURS-covered employer ends, you may leave your contributions in the RSP or take a distribution of your vested amounts. The decision you make will affect your options if you later return to employment. It is important to understand the following re-employment situation before making your decision to take a pre-retirement or retirement distribution.
Re-Employment After a Pre-Retirement Distribution (not age or service eligible)
If you take a lump-sum distribution of your vested account balance before you are eligible (meeting vesting and age requirements) to retire, you will resume making contributions to the RSP if you are re-employed with a SURS-covered employer in a SURS-eligible position.
After you have two years of service subsequent to the date of the distribution, you have the option to repay the refunded distribution amount (without interest) in order to re-establish the contributions and service credits to your account.
If you are reemployed after receiving a refund under the Traditional Benefit Plan, you may repay the amount of your distribution to the RSP and have your prior service restored after you have remained reemployed for at least two years. This assumes you withdrew prior to the date the retirement plan choice was available (in general, prior to April 1, 1998) and that, upon your return, your choice the RSP as your permanent option.
Re-Employment After a Retirement Distribution (retirement age and service eligible)
If you meet retirement vesting requirements and take a lump-sum distribution or any lifetime income option, there is no required waiting period to return to employment and there is no earnings limitation. However, you will not have the option to contribute to SURS when re-employed by a SURS-covered employer in any capacity at any time in the future. You will not be able to repay any retirement benefit to re-establish your RSP account.
IMPORTANT! Taking a retirement distribution is an irrevocable action, regardless of the distribution option chosen. If you return to SURS-covered employment or employment covered by an Illinois reciprocal agency, you cannot cancel or undo your retirement in order to recontribute to SURS or later retire under the Illinois Retirement Systems’ Reciprocal Act.
Re-Employment and Insurance
Please be aware that some SURS-covered employers cannot employ you in a position that provides health insurance benefits if you cannot actively contribute to SURS. If you return to employment at a SURS-covered employer and you are not eligible to contribute to SURS because you took a retirement distribution, you may not be able to participate in the health insurance program as an active employee. Therefore, SURS strongly recommends taking a lifetime income option instead of a lump-sum distribution if you are retirement eligible and will need health insurance coverage in the future.