Independent Contractors

 

If you provide services to an ERB employer as an independent contractor, your earnings will have no impact on your pension. However, it is critical that both you and the employer follow IRS rules and regulations that distinguish between employees and independent contractors. ERB retirees must complete the NMERB Independent Contractor Determination Application form, and submit it to ERB for review by the legal department prior to beginning employment.

 

Independent Contractors and the Return to Work (RTW) program

In order to qualify for the RTW program you will still be required to layout 12 months without working for a Local Administrative Unit (LAU). This includes any independent contracting work you do for an NMERB affiliate. For example, consider if you retire in June and then you immediately begin working as an independent contractor with a school district until August 31. You will have to layout at least 12 months without working starting September 1 to participate in the RTW program.   

 

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