Update to PSPP re-employment rules regarding working past the end of the year a member turns 71

Effective July 1, 2025, the re-employment rules have changed for PSPP members turning age 71 this year and older who choose to work for a PSPP employer after they were required to terminate PSPP membership and start receiving their pension.

This means, for those retired members, the quarterly re-employment earnings limit where retired members must pay back part of their pension if their earnings from a PSPP employer surpass a threshold (known as a pension “clawback”) no longer applies.

How this might impact you:

• If you are turning 71 and required to terminate PSPP membership by the end of this year or in future years, the rules will cease to apply with effect from December 1 of that year.
• If you have already turned 71 prior to 2025 and have been required to terminate PSPP membership in a prior year, the re-employment earnings rules cease to apply with effect from July 1, 2025.

If you are not employed by a PSPP employer, or if your employer submits re-employment earnings reports on your behalf, no action is required on your part. If you are paid by a PSPP employer indirectly or on a fee-for-service basis and submit proof of quarterly payment related to re-employment earnings, please call us if you have any questions about how this amendment impacts you.

Note: if you're a Justice of the Peace (JP) or an Associate Judge, different rules apply to you. These rules are not impacted by this amendment. To find out more about your specific situation, please call us.

If you have immediate inquiries, please contact us or read more about the quarterly re-employment earnings limit and returning to work.