By Reg Jones
July 30th, 2010 | Uncategorized
Q: I took an early-out retirement in 2003 and have been working for the Army in Hawaii as a contractor since 2004. I have a few questions I’d like confirmation on. My position has been insourced, and I will be offered a job as a rehired annuitant to provide critical skills missing from current workforce. Under this critical skills scenario, I have been told there will be no decrement to my current CSRS Offset retirement monthly payment to offset my government salary, is that correct? Will I have any type of 401(k)-like program that I can contribute pre-tax dollars to? Do I get to participate in the Federal Employees Group Life Insurance, Flexible Spending Account, and long-term care program? I took my government health insurance into retirement so assume I will continue to receive my health insurance through deduction from my retirement annuity, can you confirm?
A: If you are appointed to a position that allows you to receive both your annuity and the full salary of your new position, you will not be considered to be an employee for retirement purposes. In other words, you couldn’t elect to have retirement contributions withheld from your pay; as a result, you would not be eligible for either a supplemental or a redetermined annuity. Further, you would not be allowed to participate in the Thrift Savings Plan. However, if your employment was over one year, you would be able to enroll in the Federal Employees Health Benefits and the Federal Employees’ Group Life Insurance programs, even if you had not been covered as a retiree. If you already have such coverage as a retiree, the premiums would be deducted from your annuity.
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