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Reemployed Annuitants


Generally speaking, the treatment of a retiree's annuity and pay upon reemployment in the Federal Government depends upon whether he or she retired on the basis of a regular, involuntary, or disability retirement. Potential benefits that may be earned as a result of the reemployment service depend primarily on the length of such service.

Some details on Reemployed Annuitants may be found in a PDF file at OPM's Web Site by clicking here.

If you have questions regarding how this can affect you, feel free to post the quesitons here. Or perhaps you have been through this process before and can offer some helpful suggestions...please share.

To read today's top news stories on federal employee pay, benefits, retirement, job rights and other workplace issues visit FederalDaily.com.

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Rick  
#1 Posted : Thursday, January 24, 2013 4:19:54 AM(UTC)
Rick74103

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I am returning to federal service after having been retired for nearly ten years. I know that my salary will be offset by my annual annuity. I retired from one series as a GS-9 and I'm being reemployed as a GS-7 in a different series.

I've asked the question as to whether I will be brought back in at a step equivolent to the salary I was making at retirement, but no one seems to know where the decision lies. I don't mind starting out as a GS-7 Step 1, but with the offset in salary, it seems that this would be unfair. Does anyone have an answer? Shouldn't they try to bring me back higher than a Step 1?Rick741032013-01-24 12:26:33
Scotty  
#2 Posted : Thursday, January 24, 2013 9:40:59 PM(UTC)
simchief

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This reference says re-employed annuitant receive full retired pay; without any reductions.

http://cpol.army.mil/library/permiss/6332.html

Here is section that explains it.

http://www.dtic.mil/whs/directives/corres/pdf/1400.25-V300.pdf

Good luck!simchief2013-01-25 05:57:03
I'll be shoveling along: <br />Digger O'Dell
larryS3  
#3 Posted : Thursday, January 24, 2013 11:29:08 PM(UTC)

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There are different rules which apply to different agencies and even variations of the reemployed annuitant program within agencies.

For example some agencies don't have special authority to allow one to be rehired and retain retirement pay and, in addition be paid for all hours worked. In that case, one's pay is only equal to the difference between the pay for the reemployed position and retirement pay. The advantage is that one accumulates additional time for computation of the retirement benefit.

Some agencies, especially DOD, have authority to waive the reduction for retirement pay. The result, if reemployed in that situation, is that one continues to receive full retirement pay plus full pay for the position one is rehired in to. In that case, one does not accumulate more time toward computation of the retirement benefit.

In my case, I was rehired to a DOD position where adjustment for retirement pay was waived, so I continue to receive my retirement pay and full pay for the position I'm working. I accumulate annual leave at the rate applicable when I retired; in my case 8 hours per pay period plus sick leave at 4 hours per pay period.

In my case my pay for the postition I'm working is based on the job description for the work I'm doing not the pay for the position I held at retirement. In my case I retired as a supervisor manager GS-14. My rehired position is at the working level, GS-12 position so my pay is GS-12 pay. The job description and grade was negotiated with my hiring supervisor; however, it was a given that the pay would be for the rehired job, not what I was paid prior to retirement.

Even within DOD there are variations to the reemployed annuitant program; in some cases the loss of retirement pay is waived but the rehire does not accumulate annual leave and sick leave.

In all cases one works at the pleasure of the supervisor. This means the supervisor can let you go at anytime and you have no appeal rights. This is reasonable considering the justification for the program; that is to cover a temporary work load need or to train someone to do the job the position entails.

One needs to talk to the hiring supervisor and the human resources office doing the hiring because there is considerable variation in the way reemployment of annuitants is handled.

Hope this is helpful
Rick  
#4 Posted : Friday, January 25, 2013 3:45:30 AM(UTC)
Rick74103

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Thank you for all the information. I don't know if it really applies to my case since I'm being hired into a permanent position. Anyway, whatever is decided, I'll just have to live with.

Thanks again...
Knight  
#5 Posted : Friday, January 25, 2013 6:04:12 AM(UTC)

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I didn't think a rehire could be perm. I think there has to be and end date.

http://federalretirement.net/rehired_annuitant.htm

Quote:
Individuals reemployed will serve under appointments limited to a year or less. An annuitant may not serve under the authority for:
•more than 520 hours of service during the period ending 6 months following the individual’s annuity commencing date;
•for more than 1040 hours of service during any 12-month period;
•or for more than a total of 3120 hours.
Rick  
#6 Posted : Friday, January 25, 2013 8:05:11 AM(UTC)
Rick74103

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Well, I applied and was accepted into a position that is a GS-7 Target 10 and it is permanent. I will find out more on Monday. You may be thinking of a reemployed annuitant that is being rehired into a similar job that was held at the time of the retirement. I am going into a position that is within a different grade and series.
Rick  
#7 Posted : Friday, January 25, 2013 8:19:10 AM(UTC)
Rick74103

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One additional thing - I'm being reemployed by a different agency than the one that I retired from. Also, I was told that I'm being hired under a special hiring authority that allows me to be reemployed in a permanent position. It was explained to me that it's due to my circumstance of being retired under a reduction-in-force. Does that make more sense?
GSBS  
#8 Posted : Friday, January 25, 2013 10:27:31 AM(UTC)
GSBS

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There is nothing wrong with going back to work, and even at a lower grade. However to lose your Federal pension is a tough pill to swallow. I would consider returning to service if there was no offset. As you know though you can always bargain within grade.
Rick  
#9 Posted : Friday, January 25, 2013 2:51:19 PM(UTC)
Rick74103

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Well, I'm not really losing the pension, I'm losing salary. However, I'm hoping that with the promotions from GS-7 to GS-9 beginning the second year and then from GS-9 to GS-10 the beginning of the third year will help to make up that difference. Plus, if I am reemployed for at least five years, I can ask for my retirement to be recalculated when I eventually leave federal service once again.
Bruce W Sims  
#10 Posted : Wednesday, February 13, 2013 3:07:42 AM(UTC)
2Tired2Retire

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When I was hired back to the VA, I was re-hired at the same pay-grade as I retired four years earlier. However this worked against me in three ways. The first was that I had my retirement annuity subtracted from my pay as you have mentioned. But there was also the matter that I continued to have my BC/BS health insurance come out of my annuity which is POST-tax dollars. I could have saved some by having my insurance come out of my pay-check in PRE-tax dollars but was too scared somebody would screw something up. Lastly, there was the issue of budget. With $$ the way it is these days I think they had regrets about hiring a trained professional when they could have squeaked-by with an intern or a newby at a lower GS rate. After all, who was going to know the diff, right?

As far as the limit of the appointment to under a year, I remember reading that in the regs somewhere but it had to do with a particular kind of appt and not RA in general. Of course, the hiring authority has a LOT of leverage interpreting things how they please. Cases that have been brought to court so far all seem to find for the agency. FWIW.
<br /><br />Best Wishes, <br /><br />Bruce<br /><br />What Man is a Man who does not Strive to make the World Better?
martyb  
#11 Posted : Wednesday, February 13, 2013 4:01:18 AM(UTC)

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2Tired2Retire wrote:
When I was hired back to the VA, I was re-hired at the same pay-grade as I retired four years earlier. However this worked against me in three ways. The first was that I had my retirement annuity subtracted from my pay as you have mentioned. But there was also the matter that I continued to have my BC/BS health insurance come out of my annuity which is POST-tax dollars. I could have saved some by having my insurance come out of my pay-check in PRE-tax dollars but was too scared somebody would screw something up. Lastly, there was the issue of budget. With $$ the way it is these days I think they had regrets about hiring a trained professional when they could have squeaked-by with an intern or a newby at a lower GS rate. After all, who was going to know the diff, right?



Well that sucks. In my agency, a re-hired annuitant gets his full retirement pay PLUS the full pay of the position. I just spent the last 9 months working with a re-hired GS12, step 10. That old boy was raking in some good $$. He did have to pay for a small apartment in the local area, $450 per month, but his paid-for home is only 200 miles away, & that's where he went every weekend, after working just a 4 day, 10 hrs a day work week here. He banked a good pile of cash, & now is back to his retired life. I believe that's his 2nd re-hired stint.

After I retire sometime this year, I'm hoping to pick up one or two of these temp deals myself, just to make enough to buy daddy some new toys (boat, truck) and to maybe stuff some $$ into the Roths.
Forum trolls to 0%
Bruce W Sims  
#12 Posted : Wednesday, February 13, 2013 5:02:29 AM(UTC)
2Tired2Retire

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Now THAT would not be half bad. I don't mind the temporary appointments as long as I know about it up front, right? In fact it might be kinda fun traveling to various locations. Might even tie into something completely new! If you get a gig like that share the wealth, will ya?
<br /><br />Best Wishes, <br /><br />Bruce<br /><br />What Man is a Man who does not Strive to make the World Better?
John Lynch  
#13 Posted : Tuesday, November 26, 2013 9:40:30 AM(UTC)
mick504

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If your salary is offset, then calculate your hourly...and it may not amount to a lot. I did and realized that it would be better for me to go to DOD, rather than HHS, and get both the pension annuity and salary even if the GS grade is lower, or at the same grade but at step 1. Use 2087 for annual hours worked. I also asked HHS if I worked for them, and they said, it cannot or would not rather be discussed, until selection was made. Meaning until you're hired...if you were say at a step 10, maybe you could ask for a step 5 in the same grade; otherwise you need to question if it's worth it. Everybody's situation is different.
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