Welcome to Just Answers! Thank you for the opportunity to answer your question! I will do my best to help!
You heard correctly! Once you retire from a municipality, you cannot go back to work for that same municipality. I personally ran across this situation. I used to be a trustee for a municipality. Our fire chief was going to retire, and was offered a job as building inspector by the same village. He could not accept it because once you retire from the village, you could not go back to work and still collect your pension. However, he left and went to work for another village as their fire chief, and is collecting a pension from village #1 while receiving a salary (and eventually a pension) from village #2. I also have a client who did the same thing. He was a commanding level police officer for one southwest suburban police department, and once he retired, he went to work as police chief for another suburb. He is now totally retired, and collecting pensions from two suburbs.
So in short, you are correct. An employee cannot both work for and collect a pension from the same municipal entity.
I hope this helps! If you have found my answer helpful, please rate
me highly. I would appreciate it!
Again, thanks and have a great weekend!