The Phased Retirement Process
Should Phased Retirement be implemented, instead of a retiree entering into full-time retirement, the retiree opts to work a part-time basis while actually being retired on a part-time basis.  The potential, however, with the existing backlog of retirement applications and ‘brain drain’ that could hinder some Agencies from doing their job, this ‘opt-in’ basis may not be as voluntary as we all would like.
- Also Read: Why Survivor Benefits Are an Essential Safety Net for Federal Employees and Their Loved Ones
- Also Read: Five Medicare Facts That Federal Retirees Should Prioritize to Save Money and Improve Their Benefits
- Also Read: Four Retirement Moves Federal Employees Are Making to Stay Ahead in 2025
The Phased Retirement annuity is paid as half given the current scenario, while the individual also receives pay for a half-time schedule. When the individual participating in the Phased Retirement fully retires there will be a recalculation done. The computation will be as if the individual had been employed full-time divided by two before adjusting for survivor benefits if applicable.
After arriving at that amount, it would then be added to the original phased annuity with the combined amount providing the basis for the survivor annuity adjustments and benefits. During the period worked in phased retirement, OPM proposes that the lifetime retirement income will increase as a result of the impact on length of service.
Phased retirement considers a full-time and part-time work scenario that would increase the benefit more than what would have been realized if the individual had retired fully without the benefit of phased retirement.  However, that scenario is less than if the individual had simply continued working full-time during the Phased retirement period.
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Explanation of Phased Retirement
