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How Pensions and PTO Affect the Earnings Test for Retiring Teachers

hey marc! Jul 14, 2023

For a teacher that is about to retire, are pension payments calculated as income? What about if they are cashing out PTO (Paid Time off they did not take)

The pension is not counted as income for the earnings test but the PTO does count.  It would count in the last month worked so they can still use the monthly test to begin payments.

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