Returning to Work after Retirement

Q: Do I still have to apply to the New Mexico Educational Retirement Board (NMERB) before I can participate in a Return to Work program?
A: Yes. NMERB retirees who return to work for a Local Administrative Unit (LAU) must submit a Return to Work application. The Return to Work application is available on the Forms page. The Return to Work programs available are the .25 FTE or less RTW program, the less than $15,000.00 per fiscal year program, and the 36 consecutive or non-consecutive month program.

Q: Do I need to submit a Return to Work application every year?
A: No. Once you have completed the Return to Work application and are approved, you do not need to complete a new application unless you change from one program to another.

Q: Do I need to submit an Application To Withdraw From Return To Work Program form if I want to switch between Return to Work programs?
A: No. You only need to submit an Application To Withdraw From Return To Work Program if you want to withdraw from the Return to Work 12 Consecutive Month Layout Program. If you want to switch between Return to Work programs, you only need to submit a new Return to Work application indicating your new Return to Work program. The Return to Work programs available are the .25 FTE or less RTW program, the less than $15,000.00 per fiscal year program, or the 36 consecutive or non-consecutive month program.

Q: How soon after I retire can I submit my Return to Work Application into NMERB?
A: A retiree may submit an application for the .25 FTE employee program at any time after the effective date of their retirement. Members applying for the less than $15,000 per year or 36 consecutive or nonconsecutive month programs (90-day layout requirement) can submit their application 30 days prior to the completion of their layout period. Example: July 1st retirees can submit a Return to Work application on September 1st.

Q: Does a retiree have to wait for approval prior to working under a Return to Work program?
A: Yes. A retiree cannot begin work for a LAU until the retiree has been approved for a Return to Work program.

Q: Do the Return to Work programs apply to Alternative Retirement Plan (ARP) members?
A: Yes. An ARP retiree who returns to work for a LAU must do so under an NMERB Return to Work program. ARP retirees must complete a Return to Work Application prior to beginning work for a LAU after retirement.

Please view the RTW Comparison Table for additional information on the various Return to Work programs available to NMERB retirees.

Q: What are the consequences for violating Return to Work Program rules?
A: Retirees are responsible for complying with all Return to Work statutes and rules. A retiree who violates RTW statutes and rules may have their retirement benefits suspended, be required to reapply for retirement, and be required to pay back all pension payments the retiree received while ineligible.

Q: If I wanted to suspend my retirement and go back to work full time, would there be consequences?
A: No. Welcome back!

Q: If I suspend my retirement, work from 2025 to 2030 and then decide to re-retire, will there be any consequences?
A: No. In fact, you will likely have an increase in your retirement benefit due to the additional years you have worked after you have suspended your retirement. However, every situation is unique and different. You may wish to speak with an analyst to get more information about your specific account and retirement, or you may email our help desk.

Q: Can I work for a Public Employees Retirement Association (PERA) employer during my 90-day layout period?
A: Yes and No. Generally, NMERB Retirees can work for a PERA employer during their layout period. However, an NMERB retiree who is a licensed educator cannot work for a state agency in an education-related program until the retiree completes the required 90-day layout period. Check with NMERB to determine whether you must submit a Return to Work application before accepting a position in such a program.

Q: If I work for a PERA employer can I contribute to PERA and earn time toward a PERA pension?
A: No. If you are an NMERB retiree and you work for a PERA employer, you cannot contribute to PERA, and you cannot earn time toward a PERA pension.

Q: Do PERA Retirees pay non-refundable NMERB contributions?
A: No. As of June 1, 2020, PERA retirees who work for an NMERB employer will not pay contributions to NMERB. Note, however, that any contributions a PERA retiree paid into NMERB from July 1, 2019, through May 30, 2020, will remain in their NMERB account until they terminate their employment. Upon termination, the retiree can request a refund of those contributions plus interest.

Q: Do I need to complete an Application To Withdraw from the 12 Month Return to Work program?
A: Yes. In order to be removed from the 12 Month Return to Work program you must submit an Application to Withdraw From Return to Work Program form. This form is available on the Forms page. Please note that after January 1, 2024, an NMERB retiree who withdraws from this program will be unable to return to this program.

Q: Can I get a refund of my retirement contributions made during the time I am working under the 12 Month Return to Work program?
A: No. If you’re participating in an RTW program that requires contributions, your contributions are non-refundable.

Note that the .25 FTE or less RTW program and the less than $15,000.00 per fiscal year programs do not require employee contributions.

Q: Do I need to submit a Return to Work application prior to being employed by a Temp Agency that provides services to a LAU?
A: No. However, a retiree must be approved by ERB as an Independent Contractor prior to working in a LAU as an employee of a Temp Agency providing services to that LAU. Independent Contractor applications are available under the Forms page.