Supplemental annuity affected by military deposit

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Q: I may become a re-employed annuitant for the FAA very soon. I retired six years ago from FAA as an air traffic control specialist after 23 years with a 50 percent CSRS annuity. Before I worked for FAA, I had three years of military service that I did not make a deposit for before retirement (since I was only going for the 50 percent minimum ATC retirement). If I comply with the supplemental annuity requirements (work full time, and deposit 7 percent of the unreduced salary for each year I work) and work for four or five years; will my supplemental annuity be reduced when I “retire again” because I did not make a deposit for my military time? Note that I am not interested in a recomputation of my original annuity.

A: As a re-employed annuitant who wasn’t hired under a special provision that allows you to receive both your annuity and the salary of your new position, your new salary would be offset by the amount of your annuity. Even so, you could ask to have retirement deductions taken from your pay. Then if you worked for a least one year full time, you would be eligible for a supplemental annuity. If you worked for at least five years, you’d be eligible for a redetermined annuity. In either case, if you are retired when you reach age 62, those years of active duty service for which you didn’t make a deposit will be deducted and your annuity recomputed without them. If you retired after age 62, the reduction would occur then.

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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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