Annuitant Earning Limits

  • TRA Annuitant Earning Limits

    If you return to work in a TRA-covered positon after retirement, you may be subject to an annual earnings limitation.

    The earnings limitation is applied to salary earned on a fiscal year basis (July 1 – June 30).

    • If you are under normal retirement age for the entire fiscal year, as defined by the Social Security Administration, the earnings limitation is $46,000.
    • If you are under normal retirement age and are retired for only a portion of the fiscal year, the earnings limitation amount will be prorated ($46,000 X number of months retired during the fiscal year ÷ 12).

    Members who have reached normal retirement age are not subject to the earnings limitations.

    If you earn over the limit applicable to you, then beginning the next calendar year, $1 in benefits will be deducted for each $2 above the limit. The pension offset amounts are redirected to a separate earnings limitation savings account (ELSA) for later distribution.

    For more information visit www.minnesotatra.org

    PERA Annuitant Earning Limits

    If you return to PERA-covered work and are over Social Security’s full retirement age, there is no restriction on your earnings. However, if you resume employment in a position covered by PERA prior to your full Social Security retirement age, you must remain within the annual earnings limitations established by the federal agency.  If these limits are exceeded, your PERA pension may be reduced or suspended.  These limits change on an annual basis.  The brochure Working After Retirement explains these limits. 

    Consult with a PERA representative if you are considering working in a position normally covered by PERA after you retire. PERA Member & Retiree Services 1-800-652-9026