Greater of 0.25 FTE or $15,000 RTW Exception

 

You may work for an ERB-covered employer after retirement without qualifying or applying for the RTW Program, but your earnings are limited. Under the Greater of 0.25 FTE or $15,000 RTW Exception, you may earn the greater of $15,000 annually or an amount equal to 25% of the salary for the full-time equivalency (FTE) of the job you are doing without affecting your retirement benefits. Full-time equivalent, or FTE, refers to the number of hours worked that add up to a full-time employee. The definition of FTE varies for each position. Your employer determines what the FTE is for a particular position and what 0.25 or 25% of FTE is for that position. The salary for the Greater of 0.25 FTE or $15,000 RTW Exception is calculated on a July 1 through June 30 fiscal year and based on the full-time compensation for the job you are doing, not on your salary before retirement.

 

lf you are working for more than one ERB-covered employer, you are obligated to notify each of your employers about all of your ERB-covered jobs. The salaries of all jobs will be combined to determine whether you are in compliance with the Greater of 0.25 FTE or $15,000 RTW Exception.

 

If you earn more money than is allowed under the Greater of 0.25 FTE or $15,000 RTW Exception in a given fiscal year, you will lose your retirement status and forfeit retirement benefits effective on the first day of the month in which your cumulative earnings exceed the greater of $15,000 or the salary for 0.25 FTE. It is your responsibility to keep track of your earnings so you do not exceed the maximum allowed.

If you qualify, it is to your advantage to apply for the RTW Program even if you only intend to work under the Greater of 0.25 FTE or $15,000 RTW Exception. Once your application is approved, if your earnings exceed the allowable limit, you will not lose your retirement status or forfeit retirement benefits. If you have not applied and been approved for the RTW Program, you run the risk of losing retirement benefits if your earnings exceed the allowable limits under the Greater of 0.25 FTE or $15,000 RTW Exception.

 

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.

 

For more information please see the ERB Member Handbook or email ERB-memberhelp@state.nm.us.