Re-employment

6

Q. Can you explain what would happen to my pension as a reinstated employee? I retired in 2011 from the sales department in the U.S. Postal Service. I took a Voluntary Early Retirement Authority. I was 53, now I’m 59. I would like to go back to my job (I just saw the posting). I have been getting the supplement since age 56.
I get $27,348 with my pension and supplement. I left at the pay scale of $68,000 — the same as the job is offering. Would I still get a pension in my direct deposit? Will I accrue a new pension? How abut the TSP?
Will my high-3 go higher when I do retire again? How long would I have to work to officially retire again?

A. Your annuity would continue; however, because your salary would exceed the annual Social Security earnings limit, you’d no longer be entitled to the special retirement supplement. The salary of your new position would be reduced dollar for dollar by the amount of your annuity. If you worked for at least one year full time, you’d be entitled to a supplemental annuity, which would be added to your current annuity. If you worked for at least five years, you’d be entitled to a redetermined annuity. In other words, your annuity would be recalculated based on your entire work history.

Share.

About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

6 Comments

  1. I am considering taking an early retirement buyout (55 with 27 years of service). I intend to work with a contractor for several years, so would not qualify for the Special Retirement Supplement due to earnings. However, if I decide to stop working at age 60, can I then apply for the Special Retirement Supplement?

  2. I will be 55 in August with 25 years of federal Service (counting Military buy Back). What would be the best option ofr me to take if a buyout is offered or a VERA for 2017 or the near future due to the President rquest for the reduction in the Civili Service work force?

  3. I retired under CSRS with a buyout 6 mths short of 55 with 38 years of service. I’m interested in taking a part time position with the USPS in which I’m only guaranteed to work 1 day a week. If I accept the position would this affect my annuity payment?

    • As long as you are now age 55, it wouldn’t affect your annuity. However, because you received a VSIP, if you accept employment for compensation with the Government of the United States within 5 years of the date of the separation on which the VSIP is based, including work under a personal services contract or other direct contract, you’ll have to repay the entire amount of the VSIP to the agency that paid it – before your first day of reemployment.

Leave A Reply