There are opportunities for retirees to return to federal service under the Rehired Annuitant program. In most cases you will keep your full annuity. However, also in most cases, your new federal salary will be reduced by the amount of your annuity. The salary reduction is waived for certain critical occupations. This article discusses the program and how it impacts your annuity.
It is important to note that federal retirees can go back to work in the private sector without any impact on their federal annuity. You will continue to receive your full annuity and all benefits if you decide to work in the private sector after you retire from federal service.
Reemployment in the Public Sector, however, may affect your annuitant status, whether you will continue to receive your annuity during and after the period of employment, and how that amount might be affected.
Cases Where Annuity is Stopped
Reemployment will cause your annuity to stop if:
You are a disability annuitant whom OPM has found to have recovered or restored to earning capacity prior to reemployment; or
You are a disability annuitant who was not disabled for a National Guard Technician position but were awarded disability annuity because you were medically disqualified for continued membership in the National Guard.
In Most Cases, Your Annuity Continues
If your annuity does not stop under the above conditions, then you will continue to receive it while working. But your pay will be reduced by the amount of annuity paid for the period you work.
If you do not work full time, the reduction in pay will be adjusted proportionately. However, some pay is not subject to this reduction for annuity. For example, your pay is not reduced by the amount of your annuity for a period during which you have elected to receive injury compensation benefits in lieu of annuity or when you receive a lump-sum payment of annual leave upon separation from federal service.
Unless your reemployment is on an intermittent basis, retirement deductions will be withheld from your pay. The retirement deductions are a percentage of your basic pay, before it is reduced for annuity.
Not all of the above rules apply to all reemployed annuitants. The stoppage of annuity will be waived if you are reemployed:
Under special provisions for positions for which there is exceptional difficulty in recruiting or retaining a qualified employee or there is a direct threat to life or property or other unusual circumstances warranting emergency employment;
On an interim basis, as a consequence of an administrative or judicial body reviewing the grounds for your separation; or
Under another retirement system for federal employees,
Part-Time Reemployment Opportunities
Section 1122 of the National Defense Authorization Act for fiscal year 2010 allows reemployment of CSRS and FERS annuitants on a limited basis with continued receipt of both annuity and salary. The provisions apply to Executive agencies (excluding DOD and GAO), the Postal Service, the Judicial Branch, and Legislative Branch agencies (other than GAO, which is excluded under both the Executive and Legislative Branch provisions).
This authority may be used by agencies when they determine that its use is necessary to:
- Fulfill functions critical to the mission of the agency;
- Assist in the implementation or oversight of the American Recovery and Reinvestment Act of 2009 or the Troubled Asset Relief Program;
- Assist in the development, management or oversight of agency procurement actions;
- Assist the Inspector General for the agency in the performance of his or her mission;
- Promote appropriate training or mentoring programs of employees;
- Assist in the recruitment or retention of employees; or
- Respond to an emergency involving a direct threat to life or property or other unusual circumstances.
Individuals reemployed will serve under appointments limited to a year or less. An annuitant may not serve under this authority for:
- More than 520 hours of service during the period ending 6 months following his or her annuity commencement date;
- For more than 1,040 hours of service during any 12-month period; or
- For more than a total of 3,120 hours.
This reemployment authority expires on October 27, 2014.