• Home
  • Retiree Rehire & Retiree Contractual Services Policy

Retiree Rehire & Retiree Contractual Services Policy

Policy
Purpose: 

This policy establishes the parameters for post-retirement rehires to ensure that bona fide separation, as required by laws and regulations, has been established while addressing the University's occasional need for services of a retired faculty or staff member. 

Applies to: 

Retired faculty, academic staff, unclassified professional and university support staff who seek reemployment with the University, regardless of the funding source. Participants in the phased retirement program are also subject to the provisions of this policy upon full retirement.

Campus: 
Lawrence
Edwards
Parsons
Juniper Gardens
Yoder
Topeka
Policy Statement: 

A bona fide separation from service is required for purposes of accessing retirement funds. Rehiring a retiree may occur only in accordance with the guidelines described in this policy, and with authorization from Human Resource Management (HRM). The rehire must serve the best interests of the University as determined on a case-by-case basis by HRM, in consultation as appropriate with the Office of the Provost. 

Mandatory Waiting Periods

KPERS and KP&F retirees: Kansas law requires a 60-day waiting period prior to application for reemployment and the rehire of a retired KPERS members over age 62 and a 180-day waiting period for retired KPERS member under age 62. Retired KP&F members are required to have a 30-day waiting period prior to application for reemployment and rehire. The waiting period begins after the KPERS and KP&F retirement date which is always the first of the month following retirement. See KPERS: Working After Retirement for more information about waiting periods, the requirement that no prearrangement to return work can be made before the applicable waiting period expires and any applicable earnings limits or special employer fringes paid on compensation.

KBOR Mandatory Plan retirees: There is no KBOR required waiting period before a retired KBOR Mandatory Plan member can be rehired. However, if a covered employee takes distribution from the 403(b) Mandatory Plan after retirement and is later rehired, if the retirement is not bona fide, penalties or additional taxes could result. Upon rehire, into any position, the KBOR  retiree will no longer be permitted to access mandatory 403 (b) funds. See the Kansas Board of Regents Bona Fide Separation from Service memo for more information about taking distribution from your KBOR 403(b) Mandatory Retirement Plan or speak directly with a TIAA or Voya representative.

Rehire Guidelines After Applicable Waiting Period

A unit may not rehire a retiree in the exact position with job duties and job title identical to those to those held before retirement. Tenured faculty members who retire cannot hold a tenured faculty job title upon rehire after retirement.

Prior to filling a vacancy and/or making a commitment to a retiree, the unit must submit a written request to rehire a retiree through the appropriate administrative hierarchy (e.g. Dean, VP, VC, Director) to HRM for final review/approval. Additional certification is required from HRM for KPERS retirees to confirm that no employment prearrangements have been made until the applicable waiting period after retirement has elapsed.

A unit may ask to rehire a retiree from a recruitment pool into a temporary position limited to 999 hours in a calendar year without conducting a search.

A unit that wishes to rehire a retiree into a regular full- or part-time position may do so only through the search or search waiver process and only on a limited-term basis for a maximum of two years. Extensions of the appointment beyond two years must be requested and authorized by the same administrative channels that authorized the rehire. Administrative offices will consider requests for extensions of appointments on a case-by-case basis to determine whether it is in the best interests of the University to end the appointment, to extend it for a specified period of time, or to permit its continuation without the limited-term designation.

Retiree rehires will be subject to the conditions of employment required for the position, as applicable in the Employment Condition policy. In the event a position is benefits-eligible or eligible for health insurance coverage pursuant to the Affordable Care Act, the retiree rehire may enroll in any of the benefit programs available by virtue of the retiree's position and as prescribed by the retiree's respective retirement plan and/or appointment status.

Contractual Services

In some cases, units may wish to consider engaging retirees on a contractual services basis. The provision of such services must comply with criteria established by the Internal Revenue Services (IRS) and University policy.

Criteria such as the scope of work and services will be reviewed to determine if the work performed is dissimilar from the pre-retirement job and other KU employment based/compensated positions and if the services are performed independently without the use of university space, equipment, materials, or supervision. The scope of activity for payment must be for a specified time period with a specific set of deliverables for services that are generally offered to multiple clients. 

Grant Funded Services: In situations where the retiree’s services are to be paid from research and/or grant funds, Uniform Guidance may apply and require additional conditions that must be met (e.g. grantor approval) before the use of such services is approved.  Such additional requirements may vary and are dependent on the specifics of the funding, the scope of work, and the extent of the retiree’s previous involvement, if any.  Please contact the Office of Research regarding the procurement of retiree services with research/grant funds.

Contractual services arrangements may require the collaborative review of Procurement Services, Office of Research, Office of the General Counsel, and Human Resource Management to obtain final approval.

Exclusions or Special Circumstances: 

Requests to rehire employees submitted prior to the employees’ retirement will be considered only for employees who have an official retirement date accepted by the University and are not retiring from KPERS or KP&F. Requests for exceptions to this policy should be submitted to HRM, where they will be reviewed on a case-by-case basis, consulting with the Office of the Provost as appropriate.

KPERS retirees who are hired/rehired will be subject to applicable earning limitations, and the unit will be responsible for paying any applicable KPERS employer fringe costs based on the employee’s compensation.

The provisions of Working After Retirement also apply to KPERS retirees who are hired through a temporary agency or as a third party, e.g. contractual services or consultants. 

Contact: 

(For faculty & academic staff)
Office of the Provost
Vice Provost for Faculty Development
250 Strong Hall
1450 Jayhawk Blvd.
Lawrence, KS 66045
785-865-4946
provost@ku.edu

(For unclassified professional, university support staff & KPERS/KP&F retirees)
Department of Human Resource Management
103 Carruth-O’Leary Hall
1246 W. Campus Road
Lawrence, KS 66045
785-864-4946
hrdept@ku.edu

Approved by: 
Provost and Executive Vice Chancellor
Approved on: 
Tuesday, September 29, 2009
Effective on: 
Thursday, October 1, 2009
Review Cycle: 
Annual (As Needed)
Definitions: 

Regular Positions: Appointments to regular positions may be either full-time or part-time and may be made on a fiscal year or academic year basis depending upon the type of employment. If the appointment is 48% or greater, the faculty/staff member is eligible for the employer subsidized benefits associated with "regular" employment, e.g. health insurance, retirement, paid leave appropriate for the type of employment, etc. Eligibility for State Employee Health Plan insurance coverage may be applicable pursuant to the provisions of the Affordable Care Act.

Employment Conditions: The Employment Conditions policy outlines circumstances affecting the nature of temporary, limited term and other appointment types. 

'Effective Date of Retirement' for KPERS participants: the first day of the month that follows the last day in pay status. For KU purposes, in the HR/Pay system, the day after the last day in pay status. For KPERS retirement benefit and waiting period purposes, the last day of the month following the last day in pay status. For example, if the last day in pay status is May 23, the effective date of retirement for KPERS' purposes is June 1.

'Effective Date of Retirement' for KBOR program participants: the day after the last day in pay status.

Keywords: 
Retirement, rehire, appointments
Review, Approval & Change History: 

05/15/2018: Updated with pursuant to revisions in Working After Retirement, Employment Conditions policies and guidelines for contractual services.
07/17/2017: Fixed broken link.
07/11/2016: Updated to remove gendered pronouns.
08/27/2015: Removed broken link HR Focus Topic: Employees Who End Their Working Relationship with KU & Checklist as HR is working on an updated version.
01/06/2015: Removed broken link.
11/24/2014: Fixed broken link to the Kansas Board of Regents Bona Fide Separation from Service memo.
10/30/2014: Fixed broken links; policy formatting cleanup (e.g., bolding, spacing).
06/06/2014: Revised to remove reference to the one year moratorium for rehiring retirees who were approved for the Voluntary Separation Incentive Program.
08/20/2012: Revisions approved by the Provost and Executive Vice Chancellor.
09/29/2009: Approved by the Interim Provost and Executive Vice Chancellor.

Personnel: Affiliates/Volunteers Categories: 
Hiring
Personnel: Faculty/Academic Staff Categories: 
Hiring
Personnel: Staff Categories: 
Hiring

Can't Find What You're Looking For?
Policy Library Search
KU Today
One of 34 U.S. public institutions in the prestigious Association of American Universities
Nearly $290 million in financial aid annually
44 nationally ranked graduate programs.
—U.S. News & World Report
Top 50 nationwide for size of library collection.
—ALA
23rd nationwide for service to veterans —"Best for Vets," Military Times