Bona fide termination
Know the do’s and don’ts

First, congratulations on your retirement.

If you plan to return to work, be sure you understand any earnings limits while receiving a NYSTRS pension. Failure to follow the rules may result in the loss, suspension or reduction of your benefit.

Based on legislation passed in May 2025, the earnings limit for retirees employed by public school districts or BOCES is suspended through June 30, 2027. This earnings limit suspension does not apply to retirees who work for a community college, SUNY, charter school, or any other public employment not covered by this law.

There are several scenarios where earnings are not limited. For more info, visit nysut.cc/retirement.

The second consideration is to make certain you have a bona fide termination. Not doing so could void your retirement application and require you to return any pension payments received.

Retirement under New York state law requires a complete separation from all state public employment, whether full-time, part-time, or per diem. A bona fide break in all service is required before returning to state public service employment in retirement.

The following conditions must be met:

• You must resign from all New York state public employment. This requires a full business day break in service. For example, if your retirement date is Friday, June 26, the earliest you could return to work is Tuesday, June 30.
• You must be off the payroll. If your last classroom day is Thursday, June 25, but the contract runs through Tuesday, June 30, the earliest effective retirement date you could select is Wednesday, July 1. In this example, the earliest you could return to work post-retirement is Thursday, July 2.
• There can be no prearranged employment plan. If a retiring member signs any contract, agreement or commitment to return to service before actually retiring, that voids the requirement of a bona fide termination.