Essential businesses like the healthcare industry are experiencing increased staffing needs as a result of the coronavirus pandemic. One source of trained and experienced professionals being recruited to fill those needs are former employees who are currently retired.
However, these professionals are less likely to come out of retirement if their monthly pension payments are suspended as required by some pension plans. In order to remove that obstacle, employers should seek to amend their plans to remove or modify this provision for those rehired during the crisis. It would make the road to reemployment smoother for these retirees.
Milliman’s Vicki Mazzie highlights several issues for plan sponsors to consider in her article “Impact of COVID-19 on your pension plan: Rehiring retirees in healthcare and other essential businesses.”