Q. I retired under a VERA in 2008 from the U.S. Postal Service with 23 years and collect an annuity and have my health insurance deducted from my annuity. I pay the postal service premium for my health insurance, which is less than those of other government agencies. I am looking to be reinstated with another government agency.
1. Will my annuity end or decrease? If so, how will it be calculated?
2. Will I have to pay the higher premium for my health care through the new agency?
3. Will my annuity amount increase when I retire from my new position?
4. Will I keep my years of service in regards to my annual leave in my new position?
A. 1) There are three possibilities. One, if you retired before meeting the standard age and service requirements to retire on an immediate annuity, your annuity would stop and you’d be a regular employee, one who wouldn’t be able to retire again until you met the age and service requirements. Two, if you now meet the age and service requirements to retire, in all likelihood, the salary of your new positions would be offset by the amount of your annuity. Three, in rare cases, you would be able to keep both your annuity and the full salary of your new position.
You’ll need to check with you prospective employer to find out which arrangement would apply to you.
2) Yes, you’ll have to pay higher premiums than a Postal Service employee. In fact, as a Postal Service retiree, you should already be paying the higher premiums that apply to all non-Postal employees and retirees.
3) If you are hired into a position where your salary is offset by the amount of your annuity and you work for a full year, you’ll be entitled to a supplemental annuity. If you work at least five years, you’ll be entitled to a re-determined annuity. If you are hired into a position that allows you to keep both your annuity and the full salary of your new position, you won’t be entitled to any additional annuity benefit.
4) Your annual leave accrual rate will be based on your total years of government service. Note: Because you retired under a VERA, you would only be able to retire again if you met the age and service requirements.
