If a retiree gets fired after being reemployed by the state

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I was told by another employee that a person had retired, then was re-employed with a state agency, but got fired. Is it true they lost any state retirement benefits? I find it hard to believe, but I didn't know enough to argue the point.
If a retiree returns to work in a benefit eligible position (a position normally requiring at least 1040 hours of work per year), the retiree will not be eligible to receive any retirement benefits while reemployed. However, the retiree’s retirement benefits will resume once the retiree’s reemployment ends (even under an involuntary termination). The retiree also would receive an additional retirement benefit based on service while reemployed if the retiree was reemployed for at least one year prior to ending employment (again, it does not matter if the termination was involuntary).
For more information about reemployment after retirement, see http://www.mosers.org/retired/reemployment.asp. Print Friendly and PDF