To combat ongoing staffing shortages within public schools, New York State has once again extended the universal retiree salary cap waiver for public sector retirees who return to work in public school districts and Boards of Cooperative Educational Services (BOCES). Originally set to expire on June 30, 2023, the waiver was previously extended to June 30, 2025, and now, with the newly enacted state budget for fiscal year 2024-2025, it will remain in effect through June 30, 2027.
This extension allows public sector retirees under 65 to return to work in public school districts and BOCES without being subject to the usual $35,000 annual earnings cap. Typically, retirees who earn more than $35,000 from public sector jobs risk losing a portion of their pension benefits. However, under this waiver, eligible retirees can continue to work without worrying about the financial penalty, incentivizing seasoned professionals to return to the workforce.
The decision to extend the waiver reflects the state’s ongoing challenge of recruiting and retaining qualified school staff. Since the pandemic, New York schools have struggled to maintain stable staffing levels, with many districts facing critical shortages in teaching and support roles. By allowing retirees to continue working without earnings limitations, the state leverages their experience to maintain continuity and quality in education.
Educational leaders have welcomed the extension, noting that retaining experienced staff helps address gaps in classroom instruction and administrative roles.
The extension does not apply to retirees in other public sector roles outside of school districts and BOCES.
