Things to Know About Hiring NMERB/NMARP Retirees
Return to Work Rules
1 Official Return-to-Work (RTW) Status – to be eligible to return to work without restrictions, the retiree must layout from work/volunteer roles with all ERB institutions for 12 consecutive months. At the end of the 12 month period, the retiree must complete an application for the RTW program and be approved for RTW status. Once approved, the retiree must provide a copy of the approval to the hiring institution each time they are hired, unless already on file with the institution.
2 RTW Exception Options – the NMERB allows retirees to be re-hired to work without the 12 month layout period; however, the retiree is restricted either in the number of hours worked or the gross income per fiscal year. The exception rules allow the greater of:
a. .25 FTE – allows the retiree to work in a status that will not exceed 25% of full time status, which equates to 10 hours per week, in a fiscal year.
i. Note – faculty are hired based on credit hour, not hours per week, so FTE is calculated based on NMSU policy.
b. $15,000 – allows the retiree to work in any status as long as total gross earnings for the fiscal year do not exceed $15,000.
If the retiree is working for more than one ERB-covered employer; the retiree is obligated to notify each employer about all of his/her ERB-covered jobs. The salaries of all jobs will be combined to determine whether the retiree is in compliance with the Greater of 0.25 FTE or $15,000 RTW Exception.
If the retiree earns more money than is allowed under the Greater of 0.25 FTE or $15,000 RTW Exception in a given fiscal year, the retiree will lose his/her retirement status and forfeit retirement benefits effective on the first day of the month in which the retiree’s cumulative earnings exceed the greater of $15,000 or the salary for 0.25 FTE. It is the retiree’s responsibility to keep track of his/her earnings so he/she does not exceed the maximum allowed.
Also, please remember that time worked under the Greater of 0.25 FTE or $15,000 RTW Exception does not qualify for the 12 consecutive month break in service or layout required for the RTW Program.
NMARP – Things to Think About
· NMARP option is only available to specific positions, based on guidelines from NMERB. http://www.nmerb.org/pdfs/ARPOperationsManual082010.pdf
· Newly eligible employees have 90 days from their date of hire to opt into the NMARP.
· Once opted into the NMARP, participants have a one-time opportunity to move to the NMERB defined benefit plan. This can be done within 120 days of reaching 7 years in the NMARP.
· If an employee, who would be eligible for the NMARP, has previous contributions to the NMERB defined benefit plan, they cannot participate in the NMARP, even if the previous contributions were to NMERB were refunded. In essence, once the employee contributes under NMERB, they are NEVER eligible for NMARP in the future. This is especially key for new faculty who get hired on as temporary faculty prior to assuming their regular appointment.
HR PresentsSession: July 23, 2014Benefits Handout