Will an Annuity Continue if a Retired Worker Returns to Service?

Some retirees and even workers still in service are curious about the possibility of returning to service after retirement. The first question we must ask is, what happens to such a worker's annuities? Generally, the annuities will stop, but it continues along with the new salary in some cases. First, let's examine cases where it will stop. For CSRS returning retirees, annuities will stop if:

One, the returning worker suffered a disability and recovered enough for the OPM to reinstate. 

Two, the returning worker is returning as a National Guard Technician who suffered a disability that made them retire from the National Guard in the first instance. 

Three, an agency compulsorily resigned the returning worker, and the new position is a permanent one. (An exception is returning workers who completed their number of years in service or age requirement in the first instance. For people in this category, annuities do not stop.) 

Four, the returning worker gets an appointment from the President. (These appointments should be ones that retirement reductions affect.) 

The rules are slightly different for workers covered under the FERS. For returning workers in this category, only the first two categories will stop receiving annuities. 

Former annuitants who no longer receive annuities will return to being everyday federal workers. When such a worker retires the second time, the agencies will resume annuity payments except for deferred or immediate separation in the second instance. This is because the system considers returning workers as workers who had interrupted careers.

For workers who put in the required number of years and retired at the right age, annuity payments will proceed. The pay in the new position will have some reduction to account for the annuities. This does not apply in all cases, as some posts allow workers to get the “best of both worlds" without reduction. 

Such positions include positions that pose some danger to life or property, positions that only a few people are knowledgeable about, emergency recruitments, and other cases. Individuals interested in returning to federal employment should request details of the new position. 

Returning annuitants get supplemental annuities of redetermined annuities. The first will be available for returning retirees who will only spend at least a year more in service. The other is available for returning annuitants who will work for at least five more years. For people in the first category, the supplement annuity is combined with the normal annuity. For those in the second category, the redetermined annuity takes the place of the previous annuity.