Legislation, P.L.2016, c.76 (A-1878 / S-2404 (Wimberly/Rice), increasing the amount that a retired coach may earn from $10,000 to $15,000 before being required to reenroll in TPAF, was signed into law December 5.
The new law amends prior law, P.L.2014, c.21, which created an exception to current regulations to allow a retired member of the Teachers’ Pension and Annuity Fund (TPAF) to become employed again with the former employer in a position as a coach of an athletics activity if:
- the employment begins after the retirement allowance becomes due and payable;
- the retired member had attained service retirement age as of the date of retirement, which for most current members of the TPAF is age 60; and
- the compensation for the employment is less than $10,000 per year.
The new law increases the amount of annual compensation to less than $15,000 for TPAF retirees who are reemployed under this exception.
TPAF regulations require a “bona fide” severance from employment before a retiree can return to any employment with the former employer. A “bona fide” severance from employment means a complete termination of the employee’s employment relationship with the employer for a period of at least 180 days.
The new law is effective immediately.