Annuity penalty


Q. I’m a federal worker about to retire from my job after 34 years. I’m 59 years old and under CSRS. Is there a limit as to how much I can earn without being penalized if I seek non-federal government employment after retirement?

A. No, there isn’t. You could earn as much as you want without it affecting your CSRS annuity. However, if you returned to work in the federal government, as a rule the salary of your new position would be reduced by the amount of your annuity.


About Author

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

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