Can I work after retiring from Oregon PERS?
The hour limits for going back to a PERS employer, the temporary rules that lift them through 2034, and how a paycheck affects Social Security.
Yes. A private or non-PERS employer can hire you with no PERS limits at all. For a PERS employer, temporary rules in force through December 31, 2034 let most retirees work unlimited hours, as long as they retired at normal retirement age or took a six-month complete break. Early retirees who go back sooner must stay under 1,040 hours a year (Tier One/Tier Two) or 600 hours (OPSRP).
Working for a non-PERS employer
PERS says it "does not limit the hours you can be employed or the amount of money you can earn from a private employer." Your pension keeps coming in full. The same applies to any employer that doesn't take part in PERS, such as a federal agency, a private hospital or a business you start (PERS: Working after retirement, Tier One/Tier Two).
If you're not sure whether an employer participates in PERS, ask the employer before you accept the job. Many Oregon cities, counties, school districts, community colleges and special districts do.
PERS employers: the rules through 2034
Senate Bill 1049 (2019) lifted the hour limits for most retirees starting in 2020. House Bill 2296 (2023) extended those rules through December 31, 2034 (PERS: SB 1049 and HB 2296 changes). The law lets employers hire retirees without hour limits "during any calendar year through calendar year 2034," and that section is repealed on January 2, 2035 (ORS chapter 238, note after 238.082).
| How you retired | Hour limit at a PERS employer (2020 to 2034) |
|---|---|
| At normal retirement age, or with 30 years (25 for most police and fire) | None |
| Early, then a full six-month break from all PERS employers | None |
| Early, no six-month break, Tier One/Tier Two | Under 1,040 hours a calendar year |
| Early, no six-month break, OPSRP | Under 600 hours a calendar year |
Under these rules, you keep your pension and your paycheck, but you don't earn any new PERS benefits. Your employer pays its regular PERS contribution rate on your wages, but not the 6% IAP contribution, so no IAP money builds up either (PERS: Work after retirement, for employers).
Employers can still set their own limits. PERS stays out of hiring decisions, so a job offer is between you and the employer.
Early retirees and the six-month break
For the hour limits, PERS treats you as an early retiree if you retired before:
- Tier One general service: age 58.
- Tier Two general service: age 60, unless you had 30 or more years.
- Tier One/Tier Two police and fire: age 55, unless you retired at 50 to 54 with 25 or more years.
- OPSRP: your plan's normal retirement age. See when you can retire from PERS for each group's ages.
An early retiree who has a complete break from all PERS-participating employment for at least six full months after the retirement date can then work unlimited hours through 2034. "Complete" means no work for any PERS employer at all during those months, not just fewer hours.
Casey, a made-up Tier Two general service member with 22 years, retires at 57 on July 1, 2026. That's an early retirement.
- If Casey goes back to a school district in September 2026, the limit is fewer than 1,040 hours in 2026 and in every later year.
- If Casey waits until after December 2026 (six full months with no PERS work), Casey can work unlimited hours through 2034.
- In either case, Casey's pension doesn't grow from the new work.
The 1,039-hour rule
The statute says a retiree's work for PERS employers "may not total 1,040 hours or more in any calendar year" (ORS 238.082). That's why PERS advises Tier One and Tier Two retirees to treat 1,039 hours as the maximum; employers use 1,039.99 in their reporting. The hours:
- Count for all PERS employers combined, not each one separately.
- Count in the calendar year you worked them, not the year they were reported.
- Include paid leave as well as hours worked.
- Don't include hours worked under a specific legal exception.
For OPSRP retirees the limit is 600 hours, and PERS uses 599.99 as the most you can work in a nonqualifying position (PERS: Working after retirement, OPSRP).
Exceptions for Tier One and Tier Two
Older laws exempt certain jobs from the 1,040-hour limit, such as teachers in counties of 35,000 people or fewer, nurses during a declared shortage, and some police jobs in small cities and counties. Most of these exceptions don't apply to early retirees, and they don't apply to OPSRP members. PERS's Tier One/Tier Two page lists them all.
The Social Security exception
A Tier One/Tier Two retiree who is younger than Social Security full retirement age and receiving Social Security can work fewer than 1,040 hours, or more if the pay stays within the Social Security earnings limit. Once you reach full retirement age, there's no hour limit. PERS notes that new Social Security limits don't apply until PERS updates its rule.
What happens if you go over
- Tier One/Tier Two: benefits stop the first of the month after you pass the limit, if you keep working into that month. Your retirement is canceled and you become an active member again. You repay benefits only if you retired less than six calendar months before becoming active again. You can't restart under the limit the next year; you'd have to leave and retire again, under the laws in effect then.
- OPSRP: working past 599.99 hours makes you an active member back to January 1 of that year (or your hire date that year, if later). Payments stop, and anything paid after that date must be repaid.
PERS says tracking your hours is your responsibility, not the employer's. Keep your own log if you work for more than one PERS employer.
What changes in 2035
Unless the Legislature acts again, the standard rules return on January 1, 2035: the 1,040-hour limit for Tier One/Tier Two retirees (with its exceptions) and the 600-hour limit for OPSRP retirees, whether or not they retired early. If you plan to work for a PERS employer past 2034, check PERS's work-after-retirement pages each year for changes.
How work affects Social Security
If you've started Social Security before your full retirement age, a job can hold back some of it. Social Security's earnings test counts only wages and self-employment income. It does not count pensions, so your PERS check doesn't trigger it (SSA: Receiving benefits while working).
| Situation | 2026 limit | 2027 limit |
|---|---|---|
| Under full retirement age all year: $1 withheld per $2 over | $24,480 | $25,560 |
| Year you reach full retirement age: $1 per $3 over | $65,160 | $67,920 |
| From the month you reach full retirement age | No limit | No limit |
Source: SSA: Exempt amounts under the earnings test. In the year you reach full retirement age, only earnings in the months before that birthday count. Money withheld isn't lost: Social Security raises your benefit at full retirement age to credit you for the months it held back.
New wages can also raise your Social Security benefit if they replace a lower-earning year among those Social Security uses to figure your benefit. For how a government pension interacts with Social Security in general, see does a pension reduce Social Security?
What to do next
- Check whether you'll be an early retiree under the PERS definitions above, and plan any six-month break before you accept a PERS job.
- Ask the employer whether it participates in PERS and whether it has its own limits for hiring retirees.
- Track your hours each calendar year if you're under a limit.
- Read PERS's pages for Tier One/Tier Two or OPSRP retirees, or call PERS at 888-320-7377.
Our quick check shows whether your pension and Social Security cover your costs, with or without part-time work.
Can I retire?Common questions
Is the PERS 1,039-hour limit still in effect in 2026?
Only for early retirees who return to a PERS employer without a six-month break. Most other retirees have no PERS hour limit through December 31, 2034.
When does the SB 1049 work-after-retirement exemption end?
HB 2296 extended it through December 31, 2034. The standard limits return January 1, 2035 unless the Legislature changes the law.
Do I earn more PERS benefits if I go back to work?
No. Retirees working under these rules don't accrue new benefits, and no IAP contributions are made for them.
Can I work for a private company and keep my full PERS pension?
Yes. PERS doesn't limit hours or earnings for work with a private or non-PERS employer.
What is the OPSRP hour limit for retirees?
600 hours a calendar year. PERS treats 599.99 hours as the most you can work without becoming an active member again.
Does my PERS pension count toward the Social Security earnings limit?
No. Social Security counts only wages and self-employment income, not pensions.
General information, not advice. We aren't part of Oregon PERS or Social Security. Before you accept a job with a PERS employer, confirm your limits with PERS Member Services at 888-320-7377.