Important Message - Retirement Incentives
We are aware that some systems are offering, or considering offering, incentives to teachers to voluntarily retire. If so, please be aware of the following provisions in Georgia law that apply to hiring TRS retirees. 1. Employers can not enter in to an employment agreement with any employee prior to his or her last day of employment. � 47-3-101. Each employer shall certify to the board of trustees the date on which the employee�s employment is or will be severed and that no agreement exists to allow the employee to return to service, including service as or for an independent contractor. For example, if a system offers an employee a one-time incentive payment in return for his or her retirement, that is acceptable. Please remember that this payment cannot be reported as earnable compensation. Systems may not, however, offer an incentive that involves any type of future full-time, part-time (49%), or contractual employment (i.e. if employee retires in June, employee will receive 5% increase in base salary and part-time employment for 1 year). There can be no agreement of hiring an employee until that person is no longer employed by your system 2. Employers must gain approval from TRS prior to hiring. The employment verification application is available online via the Employer Desktop and must be completed and approved by TRS prior to hiring a TRS retiree. Independent contractors must mail a copy of their contract to TRS. 3. Employers must complete the online employment verification application for each retiree each fiscal year (July 1). Failure to comply with Georgia law can affect a retiree�s retirement date and will also result in a retiree's benefit payment being suspended pending the required information. Additionally, either the reporting employer or the retiree could be required to repay TRS for all monthly benefit payments wrongfully paid. If you have any questions, please feel free to contact TRS by calling (404) 352-6500 or (800) 352-0650.