How Annuities are Affected by Returning to the Government

May 23, 2019

[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]After retiring and returning to work for the government, how your annuity gets affected depends on how you retired. Your annuity stops if you fall into one of four categories for all re-employed CSRS retirees. For FERS retirees, only the first two apply.

1. If OPM has found out that you are a disability annuitant who prior to employment was restored to earning capacity.

2. You are a disability annuitant who was not disabled for a National Guard Technician position but were awarded a disability annuity because you were medically disqualified for continued membership in the National Guard.

3. You are an annuitant who was involuntarily separated from your job (unless it was required by law based on age and length of service or for cause) and your new job is permanent in nature, (e.g., career, career-conditional or excepted).

4. You are an annuitant who receives a Presidential appointment subject to retirement deductions.

You have the same status as any other federal employee with similar service history and in an equivalent position when your annuity stops. Unless you are entitled to either a deferred or immediate annuity based on the separation, your annuity will be reinstated when you leave government again.

CSRS employees whose careers were cut short by a RIF, transfer or reorganization of function are mostly the retirees whose annuity stops on reemployment. Retirees that are considered to be people who are completing interrupted careers are the ones who have retired under lowered age and service requirements, and hence their discontinued services are seen as interrupted careers.

Most retirees on the other side though they met the age and service requirements for an immediate retirement. Their annuities will continue to be uninterrupted if they return to work for the government. On the job, the salary they receive will, however, be reduced by the amount of annuity received, with a very rare exception.

An annuitant that has been reemployed can either earn a redetermined or a supplemental annuity. The one tucked in your present annuity is a supplemental annuity. Usually, one will be entitled to a supplemental annuity as a reemployed annuitant on a full-time, continuous basis for at least one year. You will, however, have to work longer if you work part-time. Also, you will be eligible to choose a redetermined annuity that is meant to replace the one being received currently if you work for at least five years.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”36647″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]