Q: In 2008, I retired involuntarily at 60, with 20 years under FERS, because of funding cuts. In 2009, I was re-hired in a permanent GS position by another department. My salary was offset by the amount of my annuity. I am planning to retire after completing at least five, or six+ years, in 20015-16. How will my re-determined annuity affected, under following conditions: (1) do I qualify for 1.1 percent per year rate, instead of 1 percent, as I have now; (2) my earlier high-3 was approx $120,000, at GS14-10 for all years, whereas as GS-13/10, in current job this may remain below the earlier job; and (3) is the redetermined annuity based on high-3 for the total service period, or uses another formula, for example how would unpaid (LWOP) FMLA leave, taken in last 3-5 years, affect annuity?
A: If you have worked for at least five years full-time when you retire again, your annuity will be recomputed as if you had never retired in the first place. The high-3 used will be your highest three consecutive years of average salary, no matter when they occurred in your career. You will receive full service credit for any LWOP that didn’t exceed six months in a calendar year. LWOP that exceeds six months in a calendar year isn’t creditable for any purpose.
2 Comments
How does the Redetermined Annuity affects any prior allotment to former spouse paid under first retirement annuity? I paid to get the higher amount. Does the allotment have to be recalculated giving spouse a much higher allotment.
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