Re-employed annuitant benefits


Q. I retired in January as a CSRS annuitant after 32 years of service with the Navy and Marine Corps. I am considering returning to the Navy as a re-employed annuitant. In accordance with DoD policy, I understand that I will be able to draw my full salary and my full annuity without a waiver from OPM. I believe Social Security taxes will be withheld, and I cannot make CSRS contributions if I draw both a pension and full salary. Will I be able to contribute to TSP? Will I accrue annual leave and sick leave? If so, how many hours of leave will I accrue? Will my FEHB premiums be withheld from my salary, or continue to be withheld from my annuity? Will I be able to have a FSA health savings plan?
A. You will be able to contribute to the TSP. You will accrue both annual and sick leave. Your annual leave accrual rate will be the same one you had before you retired. When you retire again, you’ll receive a lump-sum payment for any unused annual leave. You’ll accrue sick leave at the standard four hours per pay period rate. Any sick leave that remains to your credit when you retire again, will be lost. FEHB premiums will continue to be taken from your annuity. If you are currently enrolled in an FSA health savings plan, you can continue that coverage. If you aren’t currently enrolled, you can do so. Note: When you retire again, you’ll receive no retirement credit for that period of employment. The annuity you are already receiving will continue without interruption.


About Author

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


  1. I was RIF’d in 2011 because of a reorg and the district in the Postal Service that I worked in was abolished and absorbed by another district. At the time I was an EAS 22 manager. At the time I was only 53 with 26.5 years of FERS service plus 3 years of active duty military that I bought back. My question is what rights do I have after all this time as to being reemployed by the USPS. At the time the reorg was rushed and very little information was given to those of us who had our positions eliminated so most took the RIF and early retirement. I’ve always regretted that I was forced to retire so young as it impacted my pension a lot. Do I have any retreat rights and if so how would I be impacted as far as time in service, annual leave, etc.

    • While you have no reemployment rights, you are free to apply for any position for which you are qualified. If you were hired, your annuity would be suspended and you’d receive the salary of your new position. Further, your annual leave category would be the one you had on the day you retired. When you retire again, your annuity would be reinstated and recalculated to include that new period of service.

      • Thank you for the very helpful information. Getting the same amount of leave as I was earning, which was 8 hours per PP based on 80 hours per PP, is enticing. Where would I fall as to what pay step? Would I have to start at the bottom pay step and start all over getting the step increases, which in the USPS, I believe is every 46 weeks? I think it takes around 13 years to reach top step. And, since I’ve taken my Social Security at 62, would that stop until I retired again? I’m seriously considering going back to the USPS as they are short staffed everywhere and they have a program where they’re committing to hiring 100,000 vets, vets spouses, children, and even veterans mothers. Thank you for your help and great information.

        • There is no requirement that your former agency rehire you at the same grade and step you had when you retired. They might, but then they might not. It would be up to you to negotiate with them if the offer was not to your liking. Since you have not yet reached your full Social Security retirement age, if you go back to work your Social Security benefit will be reduced by $1 for every $2 you receive in salary above the annual earning limit. In 2021 that limit is $18,960.

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