Discussions about post-retirement appointments or services as an independent contractor between the individual and the department head/supervisor, area Human Resources Strategic Partner (HRSP), and Penn State Human Resources (HR) should occur as soon as the need for post-retirement appointment is identified by the area and before initiating action. In this way, guidance can be provided to benefit both the University and the employee and remain in compliance with the requirements of SERS. All post-retirement appointments must be approved by either Penn State HR or Tax Office in advance. Post-retirement appointment approval cannot be granted retroactively.

Employment Appointment

For all post-retirement situations, prior to any commitment being made, a letter requesting a post-retirement employment appointment should be initiated by the department head or supervisor, endorsed by the appropriate dean or administrative officer, submitted to the HRSP who then submits the request to the Vice President for Human Resources (or designee) for approval. The request should contain specific information on the need, suggested pay, length of time of recommended employment or retention of services, and a summary of steps that have been taken to solve the problem in another way.

Appointment Outside the Payroll

Prior to any commitment being made to pay a retiree that will be compensated outside of the Payroll System, a letter requesting a post-retirement appointment of an independent contractor (or business entity supplying a retiree's services) should be initiated by the department head or supervisor, endorsed by the appropriate dean or administrative officer, and submitted to the University's Tax Director (or designee) for approval. The letter of request should contain specific information on proposed duties and pre-retirement employment duties. If the proposed arrangement is with a business/company employing the retiree, the request should contain additional information regarding the business/company's activities prior to contracting with the University, retiree ownership interest, and other company employees who can provide the required services.

Notifications

The Vice President for Human Resources (or designee) shall inform the HRSP and dean or administrative officer of the disposition of a request. The Penn State Employee Benefits team is responsible, for notification in writing to the State Employees' Retirement Board indicating the name of an SERS annuitant, social security number, justification for post-retirement appointment, the starting and termination dates, and the hourly rate of pay.

For complete information about post-retirement appointments, see Policy HR45 Post-Retirement Appointments.