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Teaching After Retirement
TEAchING AFTER RETIREMENT – WhAT ARE ThE RULES? Submitted by TRAF
If you return to teach in a Manitoba public school after you retire, you should be aware that there is a limit to the number of days, and when you can return to teach, before it affects your TRAF pension.
These rules do not apply if you are teaching outside of the public school system or if you are over the age of 65 with 15 qualifying years of service in the TRAF plan.
Returning to teach within 90 days of retirement:
These rules apply to general or term teaching contracts where TRAF contributions are normally required, but excludes substitute teaching.
If you return to teach under contract within 90 days of retirement, you will no longer be considered retired according to The Teachers' Pensions Act (TPA).
TRAF is therefore required to cancel your pension and you must resume contributing to TRAF as an active member. You will also have to repay TRAF the pension you received to this point.
Once you retire, your pension will be calculated on your total service as if you had never applied for pension.
Limited number of teaching days in a school year:
If you return to teach under contract and work more than 120 full days* in a school year, legislation requires your pension to be “suspended”on the 121st day and you must again contribute to TRAF. You will not have to repay TRAF the pension you received up to the 120th day. Any pension paid beyond the 120th day must be repaid to TRAF.
• IMPORTANT: Teaching more than 50% of a day is considered to be a full day of work. Anything up to 50% is considered to be a half day. It is possible to teach more than 50% of a day in one morning or afternoon. Check with your school division to be sure.
Once your pension has been suspended you must terminate your contract to reactivate your initial pension (regardless of age and qualifying service). You will need to apply for your second pension benefit based on your additional earnings and accrued service. Depending on how long you continue employment, the second benefit may be paid as a lump sum or as an additional pension. You will once again be subject to the rules of returning to teach within 90 days of your most recent retirement date.
How to proceed:
You are required to notify your school division that you are receiving a TRAF pension. You are also required to track the number of days you teach during the school year, and to notify your school division and TRAF when you expect to reach 120 days. This is especially critical if you are teaching in more than one school division.
Your school division is also required to notify TRAF in writing when the number of days taught is expected to reach 120 days.
Tracking your working days after retirement:
• count all paid days • include all substitute days • if you work more than a half-day, count it as a full day • if you work less than or equal to a half-day, count it as a half-day • working an afternoon or morning could be more than a half-day • you should count the number of hours you work to determine whether the day is to be counted as a half or full day. Prep-time in your schedule counts towards this time • TRAF may request a copy of your working schedule/time table to determine when you have reached 120 days • Days are counted on a 'school year' basis (September-
June)
Other considerations:
Remember, tax is deducted based on your TRAF pension income only. If you work after retirement, you may want to increase the amount of tax deducted throughout the year.
If your pension is suspended, special arrangements may be necessary for Blue Cross, Manulife, and Johnson Group benefits as well as RTAM membership fees that are deducted from your TRAF pension. Contact those organizations directly to determine what steps you should take to continue your coverage.
LEAvING ThE RTAM BOARd
(Back row) Pat Bowslaugh (Brandon), Maureen Recksiedler (Stonewall), Rosalie Bornn (Dauphin ), Guy Hansen (Thompson), Ray Sitter (Brandon). (Front row) L-R Rita Warrian (Dauphin), Vel McAdam (The Pas). Missing: William Taylor (Brandon).
