Teaching After Retirement
How teaching after retirement may affect your pension
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 you can teach before it affects your TRAF pension.
If you are age 65 and have at least 15 years of qualifying service at the time of your retirement, you are not subject to these rules.
What are the rules?
Teaching after retirement rules apply to all positions where TRAF contributions are normally required. This includes positions under a general or term contract as well as special contracts permitted under The Teachers' Pensions Act, such as a superintendent position.
Your pension will be affected differently depending on when you return to teach and how much you plan to teach.
Returning to teaching within 90 days of retirement
If you return to teach under contract (excluding substitute service) within 90 days of retirement, you will no longer be considered retired according to The Teachers' Pensions Act.
How is your pension affected?
TRAF is therefore required to cancel your pension and you must again contribute to the plan 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.
Returning to teach after 90 days of retirement
If you return to teach under contract after 90 days from your date of retirement and work more than 120 full days* in a school year (including substitute service), legislation requires your pension to be "suspended" on the 121st day, you must again contribute to TRAF and you will accrue a second benefit. You will not have to repay TRAF the pension you received to this point.
If you are age 65 and have at least 15 years of qualifying service before reaching the 121st day, you are not subject to these rules. If you turn age 65 after reaching the 120th day, you are subject to these rules. Your contract must be terminated before your initial pension can be reactivated and your second benefit can be paid.
How is your pension affected?
When you again retire, your initial pension will be reactivated and you will have to apply for a second benefit based on your additional salary and service. Depending on how long you continue employment, the second benefit may be paid as a lump sum or as a pension.
* Teaching more than 50% of a day is considered to be a full day of work. Anything up to 50% is considered 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.
Income tax deductions
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.
Although TRAF does not administer your benefits, special arrangements may be necessary for Blue Cross, Manulife, Johnson Inc. and any Retired Teachers' Association of Manitoba (RTAM) benefits that are normally deducted from your TRAF pension.
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 that number reaches 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
To help you determine when you reach 120 days:
- Count all paid days
- Include all substitute days
- If you work more than a half-day, count it as one full day
- If you work a half-day or less, count it as 50% of a day
- Working an afternoon or morning could be more than a half-day
- You may wish to count the number of hours you work if, for example, you are teaching one class in the morning and one class in the afternoon