Salary offset

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Q. Is an office closure that forces employees into a Discontinued Service Early Retirement considered voluntary or involuntary when the employee is rehired as a re-employed annuitant.  Namely, if involuntary, not subject to new Federal Salary offset.

A. If you choose to retire in the face of a reduction-of-force, your retirement is voluntary. If you are separated by a RIF, it’s involuntary. However, no matter which way you went, it would have no affect on the amount you’d have to contribute to the retirement fund if you were re-employed by the federal government. The higher contribution rate doesn’t apply to re-employed annuitants.

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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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