FEHB and deferred retirement


Q. I started work in an letter of authorization appointment in June 2004. In January 2005, I was hired under a TERM contract not-to-exceed four years. I completed that term and a second one. At the end of that period, my only option to continue was to return to an L/A appointment. Because I was coming from a position with benefits (FEHB and FERS), I was able to keep them in the L/A appointment. The L/A appointment rules are changing (all the time, it seems), and at this point I don’t know if my L/A appointment can be renewed.

Though I’ve never been a permanent federal employee, at the end of this appointment, I will have nine years, and one and a half months of full time FERS, plus 10 months at 3/8 time. I will be 52.

I understand that as a general rule FEHB benefits cannot be picked up in the case of a deferred retirement, but I’m wondering if there is an exception because neither myself nor my employer are wanting me to stop working, there just isn’t a way to keep me working. (Well, there is a possibility I could work under a service contract act but would not have federal benefits.)

A. Unfortunately for you, it’s not just a general rule, it’s the rule. Deferred retirees are never eligible to reenroll in the FEHB program when their annuities begin.


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.

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