What to Know When Hiring a VRS Retiree

August 2025
Decorative. An older woman turned to look over her shoulder and smile at the viewer while seated at a conference room table . Others in the background are seated at the same table.

Are you planning to hire a retiree who last worked for you or another VRS-participating employer?

If so, be sure to review guidance on hiring VRS retirees and counsel potential employees about how returning to work may affect their VRS benefits. When they retire again, employees must elect the same benefit payout option they elected previously.

Depending on the retiree’s previous service and the particulars of the new job, a prospective employee who returns to work may risk:

  • Having a retirement benefit that’s lower after the second retirement.
  • Losing accumulated COLA increases that may have boosted their current monthly retirement payment.
  • Losing hazardous duty enhanced benefits, for those now receiving them.

Check out the Hiring VRS Retirees webpage for details on:

  • Different rules that apply to part-time and full-time positions.
  • Situations under which retirees can continue to draw retiree benefits versus when their retiree benefits cease upon re-employment.
  • Special rules that apply to retirees who take new positions in public schools in critical shortage areas or as retiree school security officers.
  • How returning to work may affect individuals who retired on disability or under a severance program administered by VRS.

Counsel Prospective Hires

Hiring a VRS retiree can be a win-win. Employers gain a lifetime of work experience and knowledge. Retirees can benefit from additional income and service.

Still, it’s important to make candidates aware of how their VRS retirement benefits may be negatively affected when it’s time to retire again.

The Return-to-Work Checklist for Employers offers tips on what to tell prospective employees before hiring. It also details steps you should take to ensure the hiring complies with relevant rules. For example, the employer cannot prearrange to hire employees after they retire.

Some part-time positions for state employers are covered under VRS. Part-time positions not covered by VRS are limited to 80% of a full-time position.

Questions?

If you are planning to hire a VRS retiree or have a question about return-to-work provisions, contact VRS Employer Support or call 888-827-3847.