Retired and subbing in 2026-27: Oklahoma dropped its earnings limit, Illinois kept its 120-day limit, and how to find your state's rule

If you draw a pension from the Teachers' Retirement System of Oklahoma (TRS) and substitute in Oklahoma public schools, there is no longer a cap on what you can earn. TRS says: "On and after July 1, 2026, earnings limits will no longer apply for any TRS retiree." Illinois counts days, not dollars. Its limit stays at 120 paid days or 600 paid hours a school year through June 30, 2029. It was due to drop to 100 days on July 1, 2026, and did not.

These are state rules, set by each state's law and run by its retirement system. Texas, Missouri and North Carolina each do it another way, and all three are below, along with how to find the rule for the system that pays you. California has its own post. We read every page cited here on October 19, 2026. This is not benefits advice. Each system decides how its rules apply to you.

Oklahoma: no earnings limit, and a longer wait for new retirees

House Bill 2288 took effect July 1, 2026. TRS's FAQ on the bill lists what it replaced. In the first 36 months after retiring, a retiree under 62 could earn the lesser of half their final average salary or the Social Security earnings limit. At 62 or older, it was the lesser of $30,000 or half their final average salary. Earnings over the limit brought "a dollar-for-dollar reduction of your monthly retirement benefit."

That limit is gone for everyone, not only new retirees. The FAQ asks, "I retired before July 1, 2026. Does HB 2288 affect me?" It answers that the old limits applied "but only until July 1, 2026." For people retiring now, it says you may earn "unlimited annualized compensation from Oklahoma public education employment with no reduction in your retirement benefit after your break in service."

The break in service is what changed for new retirees. If you retire on or after July 1, 2026, you wait 6 months between your last day of preretirement employment and any postretirement public education employment. Under the old law, it was 60 calendar days. The FAQ says working "in any capacity" during the wait, which "generally includes volunteer services," forfeits all retirement benefits received during that period. A TRS rule impact statement dated August 26, 2026 says the 6-month break also applies to retirees who return as independent contractors.

One rule did not change. Before you retire, you cannot have any agreement, "formal or informal," to come back to work for a TRS employer. The FAQ calls this a separate rule from the wait, and meeting one does not excuse you from the other. The FAQ does not name substitute teaching. Its waiting period covers "any postretirement public education employment."

Illinois: 120 days or 600 hours, now through June 30, 2029

The Teachers' Retirement System of the State of Illinois, also called TRS, says on its retired member page: "Post-retirement employment limitations are limited to 120 days or 600 hours through June 30, 2029." On July 1, 2029, the limits are scheduled to return to 100 days or 500 hours.

The 2029 date is new this year. TRS's Summer 2026 newsletter says Senate Bill 3645 "Extends the law permitting retired TRS members to accept work for 120 days or 600 hours" until June 30, 2029. It adds: "The original limits were 100 days and 500 hours." Before the extension, the higher limit was set to end in 2026. A TRS employer guide chapter marked "Revised 6/23" and still posted on TRS's site says: "The limits are set to return to 100 days or 500 hours on July 1, 2026."

So a handbook, a district policy or even a TRS document written before the extension can give you the wrong number. Go by the current retired member page.

Here is how TRS counts, from its member guide chapter on post-retirement matters:

• Substitute teaching counts. The limit covers work that requires teacher licensure, "including summer school and substitute teaching."
• A full day is five or more hours. "Each full day (five or more hours) is counted as five hours" toward the 600. A partial day counts its actual clock hours.
• The count is per school year. TRS's employer guide defines the school year as July 1 through June 30.
• You keep the record. "It is your responsibility to keep a record of your hours worked to ensure you do not exceed the limitation."

If you go over, the guide says your annuity is suspended and you re-enter active membership. You repay every annuity payment back to your retirement date in two cases: if you resume teaching in the same school year you retired, or if you exceed the limits in the first school year after you retire.

Texas, Missouri and North Carolina: three more ways to do it

Texas looks at the kind of position, Missouri has waived its limits for subs, and North Carolina counts dollars.

• Texas. The Teacher Retirement System of Texas brochure dated September 2025 says a service retiree may substitute "without any limit on the number of hours and days" if three things are true: the position is not vacant, the pay is no more than the employer's daily rate, and you do no other work for a TRS-covered employer that month. In a vacant position, the limit is 20 days in a school year. "Working any part of a day, as a substitute, counts as working a full day." All retirees first take one full calendar month off. Your permit may also limit your days in one classroom, which we covered separately.
• Missouri. The Public School Retirement System of Missouri (PSRS) normally limits part-time and substitute work to 550 hours a school year and half the position's annual pay on the employer's salary schedule. Its 2026-2027 brochure says: "Work limits on part-time or temporary substitute work as a substitute teacher are waived through June 30, 2030." The waiver covers teaching in place of a regular teacher who is temporarily out, whether a district or a staffing agency employs you. PSRS requires a one-month separation after you retire. It covers all but two of Missouri's public school districts, so check that it is your system.
• North Carolina. The Teachers' and State Employees' Retirement System (TSERS) counts dollars. Its return-to-work page says you can earn "whichever is greater" of 50% of your gross pre-retirement compensation or $43,300 (2026 amount). The limit runs for the first 12 months after you retire, then by calendar year. The page says serving "as a substitute teacher" counts as performing work. You cannot work for a TSERS employer in the six months after your retirement date. If you go over the limit, your benefit is suspended from the first day of the next month until January 1.

If you sub in a different state from the one that pays you

A retirement system's limits apply to work for the employers it covers. The Texas brochure says: "Service retirees may work without limits for an employer not covered by TRS without losing any monthly annuity payments." It defines a TRS-covered employer as a public, state-supported educational institution in Texas. The Missouri brochure says that work for employers PSRS does not cover "is not limited by law and does not impact the payment of your retirement benefits." Read your own system's definition of a covered employer, and confirm with the system before you rely on it.

How to find your state's rule

• Start with the system that pays your pension. It is named on your benefit statement. The rule belongs to the system, not the state, and as Missouri shows, one system may not cover every district in a state.
• Search that system's site. The pages in this post use "postretirement employment," "post-retirement matters," "employment after retirement," "working after retirement" and "return to work."
• Find four answers: how long you must wait after retiring, what the limit counts (dollars, days, hours or nothing), whether substitute teaching and staffing agency work count, and what happens if you go over.
• Check the date on what you read. Look for the school year or calendar year the page names. The Illinois employer guide above shows that an out-of-date page can stay posted.
• Ask the system before you take work you are unsure about, and keep your own count of days, hours and pay.

What we can't tell you

• The rule in the rest of the states. This post covers five, and our earlier post covers California.
• How a rule applies to you. Disability retirees, early retirement incentive programs and Illinois Tier 2 members have rules of their own on the pages above.
• Your own count. Only you, your employers and your system have it.
• What happens after the end dates. Illinois's 120-day limit runs through June 30, 2029. Missouri's brochure says substitute limits apply again July 1, 2030, "As of this time." Illinois's date has already moved once.
• The rules of a state where you sub, when it is not the state that pays your pension. We did not check those.
• Whether a job puts you over. Sub Hero's alerts and Pro's auto-accept go by the filters you set. They do not know how many days, hours or dollars you have left.

Learn more: app.getsubhero.com

Plans start at $6.99/month. Works with Frontline Absence Management.