Retiree Rehire & Retiree Contractual Services Policy

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 Resources (HR). The rehire must serve the best interests of the University as determined on a case-by-case basis by HR, 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 HR for final review/approval. Additional certification is required from HR 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 Resources to obtain final approval.