Re-employment of retired annuitants

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Q: I would like to know the current rules on getting a federal job as a retired federal employee on CSRS. I specifically want to know if I can apply for federal jobs and not lose any of my annuity, and further if I receive a full salary minus the difference between my annuity and the subject salary. I have heard there are new rules out, and I cannot find the new ruling if that is the case.

A: A few agencies, and, in particular, the Department of Defense, have special authority to hire non-disability retirees with no offset to their annuities. OPM also has the authority to approve agency requests to hire an individual to meet exceptional recruiting or retention needs without an offset. In addition, Section 1122 of Public law 111-84 allows any agency to waive the offset for temporary appointments of one year or less, but only for specific purposes spelled out in the law. Two things you need to be aware of: First, appointment under any of these authorities is limited and is made at the sole discretion of the hiring agency. Second, time served under any of these authorities isn’t creditable for any retirement purposes. Most re-employed annuitants have the salaries of their new positions offset by the amount of their annuities. However, unlike those hired under the authorities mentioned above, that service is creditable for retirement purposes. Anyone who is employed full-time for a year is eligible for a supplemental annuity. Anyone who is re-employed full-time for five years or more is eligible for a re-determined annuity, one based on their total years of service.

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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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