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Published on Friday, December 19, 2014

Use caution when hiring or contracting with retirees

Following media coverage of retirees returning to work in highly paid public positions, the Washington Department of Retirement Systems (DRS) reviewed the contracts between 374 public employers and retirees working as independent contractors. Based on this review, DRS found 30 instances, including 11 involving cities, where retirees were working more hours and/or in positions not allowed. In 24 cases, DRS has billed the local government employer for retirement benefits received by the retiree.

AWC has been working with DRS and impacted cities to find both legislative and non-legislative remedies. Finding a politically feasible fix is challenging, but we will continue to look for opportunities as the 2015 legislative session gets underway.

Cities should use caution when hiring or contracting with retirees as some of the rules are unclear. Please do not hesitate to contact DRS if you have questions about hiring or contracting with a retiree.

Categories: Personnel