Work for another federal agency after retiring from DoD

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Q. I am inquiring about retiring from one government agency and then working for another. If an individual is eligible to retire from DoD, meeting both age and time requirements, and starts to receive his pension, is it possible to then start working for another federal agency, such as the General Services Administration or Transportation Department, and ultimately receive another pension from this agency when eligible? If not, would this time with the new agency be added to time spent with DoD and his pension figured based on the combined time? I have seen individuals work for the state government, retire and receive a pension and then work for the federal government, retire again and then receive another pension. It seems to be somewhat similar to what I am asking.

A. It may be a slight exaggeration, but it’s best to think of the federal government as a single employer. So, if you retire from one part of it and go to work for another, the following will happen. With rare exceptions, the salary of your new job will be reduced by the amount of your annuity. If you work for at least one year, you’d be eligible for a supplemental annuity, which would be based solely on that period of re-employment. If you worked for at least five years, you’d be eligible for a redetermined annuity, one that would be based on your entire federal work history. If, by chance, you were hired into a position that allowed you to receive both your annuity and the full salary of your new position, in most cases, you’d receive no retirement credit for that time.

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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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