Q. I was a FERS employee and received a $25,000 early out over five years ago. I would like to once again seek federal employment but do not know the rules covering my situation. I am sure that I would not have to repay the $25,000 since it has been over five years but do not know if I would surrender my retirement pay and receive the pay from the position I would seek. What are the rules for re-employment for retirees after five years of receiving the incentive to retire early?
A. Because five years have passed since you received your buyout, you’d wouldn’t have to repay that money if you returned to work for the government. However, because you took early retirement, your annuity would terminate and you’d receive only the salary of your new position. You’d be eligible to retire again when you met the standard age and service requirements, at which time you annuity would be calculated using your total years and full months of service and whichever highest three consecutive years of average pay yielded the greatest annuity.