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Retired Employees May Forfeit Retirement Benefits Due to Independent Contractor Work

In the case of State ex rel. Worthington v. Ohio Pub. Emps. Ret. Sys., 2022-Ohio-535, the Ohio Tenth District Court of Appeals denied a retired employee’s request that the Court order the Ohio Public Employees Retirement System (“OPERS”) to retroactively reinstate the retired employee’s health insurance coverage for the period the retired employee was hired as an independent contractor by the former employer.

Here, the employee retired and was then hired by the former employer as an independent contractor. In refusing to retroactively reinstate the employee’s health insurance coverage for the period the retired employee was hired as an independent contractor, the Court explained that R.C. 145.38(B)(6) specifically provides that any OPERS retiree who returns to work for the same employer as an independent contractor forfeits such benefits for the period they are hired as an independent contractor.

As an aside, the Court also explained that this outcome would be different if the employee retired and waited 60 days to be hired as an independent contractor by a different employer because R.C. 145.38(B)(6) specifically provides that such benefits are not forfeited in this situation.

To read this case, click here.

Authors: Matthew John Markling and the McGown & Markling Team.

Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always-changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.

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