COVID relief: IRS helps employers wanting to rehire retirees or retain employees after retirement age

October 26, 2021

To help address COVID-related labor shortages, the Internal Revenue Service reminded employers last week that they generally will not jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59 ½ or the plan's normal retirement age.

With the COVID-19 pandemic, many employers, including public school districts, are looking for ways to encourage retirees to return to the workforce to fill open positions and experienced employees to stay on the job. This is specifically relevant in the context of bus drivers, food service staff, teachers and subs looking to re-enter the workforce.

The IRS created two new FAQs offering guidance to private and public employers who sponsor pension plans for their employees. The Department of Treasury and USED will also be holding two webinars for education leaders and other stakeholders to discuss approaches to addressing school staff labor shortages, including a discussion about these new FAQs:

Webinar 1- Teacher and Substitute Teacher Shortages
When: October 27 at 4 PM EST
To register: Click here

Webinar 2- Staff Shortages (school bus drivers and food service workers)
When: October 28 at 4 PM EST
To register: Click here


Read the full article here.