• David Martin

Working and Receiving a Pension: What You Need to Know

With the economic situation being what it is in the United States, many people are finding that their pension and their retirement benefits are not what they thought they would be. For those who had originally planned to able to live on their benefits after retiring, this is a sobering reality, and suddenly years that were meant to be spent among friends and family become a time of uncertainty. Many people choose to go back into the workforce to supplement their income. What does that mean if they are receiving a pension?

Pension Function

Pensions, to put it simply, are a retirement arrangement. Typically, pension plans are funded by employers and provide regular payments to former workers throughout their retirement. Some arrangements allow for deductions to be made from each paycheck, deductions which are then grown through various types of investment strategies. Payments tend to be based upon the duration of employment as well as on the salary the recipient had been receiving. In the past, pension programs were enough to cover the cost of life for retirees. Unfortunately, this just isn’t the case anymore, and every day, more people are returning to the workforce, mostly on a part-time basis. If you are one of the thousands of Americans finding themselves in this situation, there are a few things you need to know about how working can affect your pension.

Restricted Re-employment

There are some types of reemployment that are considered to be restricted and there are rules governing this type of employment. If you accept employment that violates the rules surrounding restricted reemployment, your retirement benefits will be suspended throughout the duration of your new employment. It is also possible that future benefits could be reduced to cover any benefits paid to you while working in restricted reemployment. In addition, it is important to be aware that there are a certain amount of hours that can be worked under the rules of restricted reemployment. If these rules are violated, benefits will be suspended. Any work or employment that doesn’t fall into the restricted reemployment category is not limited to the same rules, and benefits should not be affected.

Working for an Old Employer

If you choose to return to work during your retirement, be sure to get all the details about how returning to your former employer can affect your benefits. Some pension plans require pension benefits to be suspended when a person returns to a former employer after retirement. Others dictate that you can only return on a part-time or contractual basis. Keep in mind that returning to a former employer can also impact Social Security benefits as well as any disability benefits you may be receiving. Always know the details before making any final decisions.

When in Doubt, Speak to Your Attorney

When it comes to your retirement, you don’t want to have to take any chances. If you find yourself needing to return to work after receiving pension benefits, you need to have all the details sorted beforehand, or else you risk having them suspended altogether. When in doubt, speak to the attorneys at the Martin Law Group, LLC. We have years of experience and the knowledge you need to make the right decision for you and for your family. Contact us to learn more today.

Contact us today for a free initial consultation.

The Martin Law Group is dedicated to being your go-to ERISA attorneys and long term disability lawyers. Whether you are pursuing a long-term disability claim, life insurance benefits, or your pension or retirement benefits, we will meet with you face-to-face to discuss your claim at a location convenient for you. 


In an effort to make disability claims as easy as possible, we offer a free initial consultation. We often work with clients in Huntsville, Mobile, Birmingham, Montgomery, Dothan, Tuscaloosa, and Florence, in Alabama, as well as with clients in Columbus, Meridian, Jackson, Hattiesburg, Tupelo, and Gulfport, Mississippi, and surrounding areas.

Contact us today for a free consultation.

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