 Q: I've been retired for three years, and was  recently hired for a long-term substitute assignment that could become  probationary. In light of the $30,000 earnings cap, is there a way to suspend  my pension and return to work? I would love to return to teaching.
Q: I've been retired for three years, and was  recently hired for a long-term substitute assignment that could become  probationary. In light of the $30,000 earnings cap, is there a way to suspend  my pension and return to work? I would love to return to teaching.
A: Yes, there is a way. But, it's  complicated and rarely used since you permanently lose any pension benefits  you would have collected during the suspension period. If you're considering  this, contact the New York State Teachers' Retirement System to find out all  the risks and benefits.
Suspending your pension follows one  of two scenarios: suspending it without rejoining NYSTRS, or suspending it and  rejoining NYSTRS. If you suspend your pension, stop collecting benefits and  return to work without rejoining NYSTRS, you can simply reactivate your  original pension and start collecting benefits once you stop working.
Things get more complicated if you  suspend your pension, return to work and rejoin NYSTRS. If you earn less than  two years of service credit, you can simply resume your former pension when you  stop working. If you earn at least two years of service credit, you can resume  your former pension and collect a second benefit based on the new credit. If  you earn at least five years of credit, you can opt for either two separate  benefits — your original, and one based on your new credit — or a full  recalculation of your retirement benefit.
For a full recalculation, you must  repay the system the benefits you received prior to suspending your retirement  benefit, plus interest. This repayment can be made either as a lump sum or as  an actuarial reduction in your retirement benefit. The lump sum repayment  cannot be paid prior to your date of re-retirement, and the actuarial reduction  is permanent throughout your retirement.
And there are other points to  consider. Once you qualify for an additional benefit or recalculation, you will  lose any service credit you gained through a previous state retirement  incentive. If you retire under Tier 3, you must earn five years of credit for  either an additional benefit or a full recalculation. Lastly, if you suspend  your pension, you can continue optional retirement benefit coverage, but you must  pay NYSTRS the applicable monthly cost.
As stated earlier, suspending your  pension is tricky, but it can be done. For that reason, we recommend speaking  with the NYSTRS before making any decisions.
Did you know?
NYSTRS annually distributes more than $6.5 billion in benefits, with 80 percent of that total paid to New York State residents.