Returning to Work

Thinking about returning to work after retirement? Your DERP Pension Benefit and other retirement income may be affected differently based on your employer and other important factors. Consider the following information before becoming re-employed.

Working for the City and County of Denver

If you decide to work for the city during your retirement, re-employment may affect your DERP Pension Benefit. In order for your DERP Pension Benefit to not be interrupted:

  • You must be separated from employment and not receive any monies from the city, including any payment for accrued vacation and sick leave, for a minimum of 30 days, after retirement.
  • You cannot work more than 1,000 hours in any calendar year after the initial date of re-employment.

If you don’t wait at least the minimum amount of time before resuming employment or work more than 1,000 hours in a calendar year, your DERP Pension Benefit will be suspended, and you will be considered re-employed with the city in a DERP-benefitted position.

You will be required to pay the applicable employee contributions to DERP, and in return will receive additional service credit until you separate again from employment. At that time, your initial retirement benefit will resume. You will have to reapply for an additional retirement benefit to be calculated based upon the new service and earnings accrued during the re-employment period. This new benefit will be paid in addition to the previously calculated benefit.

Working for a non-City and County of Denver Employer

If you decide to work for a non-City and County of Denver employer, there are no limits on the amount of time you may work and your DERP Pension Benefit will not be affected.

Disability Recipient

If you are receiving a Disability Pension Benefit from DERP and return to work, you may not be able maintain your Social Security Disability Insurance (SSDI) benefits. If you lose your SSDI benefits, you will no longer qualify to receive a Disability Pension Benefit from DERP.

Social Security Benefits and Income Taxes

Returning to work may also affect your Social Security Benefits and income taxes. Contact the Social Security Administration and your tax professional to understand how you may be impacted.