Ask The Experts: Retirement

By Reg Jones

Rehired annuitant looking to add to retirement

Bookmark and Share

Q. I retired as a CSRS employee Nov. 30, 2006, and am a rehired annuitant. I have been working in my current position with the Air Force for the last 22 months, receiving both my annuity and the full salary of my new position. I want to find another way to add to my retirement before this overseas job ends.

What additional retirement program options do I have? I was told by Air Force personnel management that I do not qualify for supplementing/contributing to my CSRS annuity. TSP also is closed for me to invest in since I started to withdraw from my account.

Read the rest of this entry »

Tags: , , , , ,

FICA withholdings for re-employed CSRS annuitants

Bookmark and Share

Q. I am a retired pure CSRS employee working part time as a rehired annuitant with no annuity offset. I am coming to the end of my third year. When I first began working, HR was not taking out FICA. Two years ago, HR said it had been told at some payroll class that it should be taking out FICA, so it started doing so. About 12 months later, HR sent a demand letter for the FICA it had failed to collect in the beginning. I filled an appeal immediately and have heard nothing.

Three of us here are in this predicament. We do not think FICA withholding is proper. We will never be able to collect Social Security.

Their total justification seems to be that we were hired as rehired annuitants after 1983.

Read the rest of this entry »

Tags: , , , ,

Rehired annuitant’s retirement

Bookmark and Share

Q. I’m a rehired annuitant paying into CSRS.

The first time I retired, I had 44 years of service and received a refund of the overpayment I had paid into CSRS. I have been re-employed for the last 10 years and have paid into the CSRS again. Upon my next retirement, will I get a refund of the money I have paid into the system or just a recalculation of my pension?

A. What would happen is controlled by the 80 percent limit on the amount of annuity you can receive based on your highest three consecutive years of basic pay. If there hasn’t been any change, you’ll receive a refund of your retirement contribution, just as you did when you first retired.

However: If, in the recomputation of your annuity, you would be entitled to an increase to reach the 80 percent limit, you’d receive a new annuity amount and a refund of any contributions above that level.

Tags: , , , , , ,

Employment termination and unemployment

Bookmark and Share

Q. I am a rehired annuitant and my four-term of employment is ending. Will I be eligible for unemployment?

A. Highly unlikely; however, that decision rests with your state employment office.

Tags: ,

CSRS or offset upon rehire?

Bookmark and Share

Q. I am a returning civil service employee, first hired in August 1982 under CSRS. I was employed for 16+ years, then left for 13 years of military service. I am getting rehired in a federal position. Will I be reinstated under full CSRS or CSRS Offset? I did not take a refund, I am collecting a military retirement, and paid Social Security since 1975. I intend to work for five years. Will I be subject to the windfall elimination provision?

A. You will be placed in CSRS Offset because you had a break in service that exceeded one year. You will be subject to the windfall elimination provision unless, when you apply for a Social Security benefit, you have at least 30 years of substantial earnings under Social Security.

Tags: , , , , , , , ,

Rehire and annuity computation

Bookmark and Share

Q. I retired from federal service after 26 years. I became a rehired annuitant with a waiver for several years and could not participate in any retirement service. I am now returning to federal service without a waiver and without a break in service knowing my income will be reduced by my retirement annuity. Will I return to CSRS or FERS retirement system in this new capacity? If I stay for more than one year, will my final retirement annuity be refigured?

A. You will be placed in CSRS, the retirement system from which you retired, with the option of electing to be covered by FERS. If you work for at least one year, you’ll receive a supplemental annuity when you leave. If you work for at least five years, you’ll receive a re-determined annuity.

Tags: , , , , , ,

Rehires and unused leave

Bookmark and Share

Q. I am a re-employed CSRS annuitant who is receiving both his full annuity and full salary. I receive and accrue annual leave and sick leave. When I retire again, for the second time, I will have accrued and unused annual leave and accrued and unused sick leave. At my retirement, will I be reimbursed for both the accrued and unused annual leave and the accrued and unused sick leave?

A. You will receive a lump-sum payment for your unused annual leave. You won’t receive any payment for your unused sick leave because it has no cash value.

Tags: , , , , ,

Recrediting unused sick leave

Bookmark and Share

Q. I am a FERS employee who separated in January 2001 with a sick leave balance. I returned to federal employment as a presidential appointee. When I retire, will I receive credit for the sick leave balance I had when I separated in 2001?

A. Yes, the unused sick leave balance will be recredited to you.

Tags: , , ,

Performance evals and rehired annuitants

Bookmark and Share

Q. Do supervisors have to issue performance appraisals on rehired annuitants since they work at the behest of the employer? We have been requested to do that, and I do not see the value.

A. Yes, you do have to issue performance appraisals. Rehired annuitants are covered under an agency’s performance management system. Also, there’s a second reason for doing them. If your agency asks you to do them and you don’t, your own performance appraisal could be adversely affected.

Tags:

FERS supplement for rehired annuitant

Bookmark and Share

Q. I will retire under FERS and will be rehired by an agency as a rehired annuitant. Will I still receive my full supplement?

A. If your earning from wages or self-employment exceed the annual Social Security earnings limit, your special retirement supplement will be reduced or eliminated. In 2012, the earnings limit is $14,640. If you exceed that limit, $1 in benefits will be deducted for every $2 in earnings.

Tags: , , , , ,

Rehire annuitant and sick leave

Bookmark and Share

Q. I retired in May 2011 under the CSRS program as a Title 32 competitive employee, GS-12. I had 2,665 hours of sick leave when I retired. I received an additional 15 months, 12 days of length of service. The 12 days were dropped for calculation purposes since it didn’t add up to a full month. I came back to work as a rehired annuitant as a temporary employee receiving both my salary and my retired annuity. Am I entitled to get the 12 days (104 hours) reinstated to me to use in my current position, or are those hours lost because I retired from CSRS and they don’t recognize the extra days left on my record?  I see FERS employees under some circumstances can get used sick leave reinstated. Is there a place in the OPM regulations that may cover this question?

A. No, those hours are lost. The only re-employed FERS annuitants who can have unused sick leave reinstated are those who retired before Oct. 28, 2009, and received no credit for that leave in the computation of their annuities or retired on or after Oct. 28, 2009, and only got credit for half of it in the computation of their annuities.

Tags: , ,

Rehired annuitant

Bookmark and Share

Q. I plan to retire on Dec. 31. I plan to return as a rehired annuitant Jan. 2. Can I elect to defer the receipt of my 240 hours of annual leave pay out until my final departure from the agency?

A. If you return to work for the government, your unused annual leave should be restored to you. If you are going to work for the same agency, you’ll need to alert your payroll office of that fact. If you are going to a different agency, you may end up with a lump-sum payment for your annual leave, which you’ll have to return in order for that leave to be recredited to you.

Tags: ,

Offset and rehire

Bookmark and Share

Q. I am, a 1811 employee who will be 57. I face mandatory to retirement  in 2012, with 23 years of service under FERS. Two questions:

1) Regarding the supplement from OPM, is there a earnings test/limit associated with the benefit? Or can I make more then the $14,000 without any reduction to the supplement?
2) Regarding  returning to federal service, law enforcement or non-law enforcement position, is that possible and what is the process to prevent a reduction in my pay/annuity? Is there a special term/classification I need to address in the application process?

A. First, because you will have reached your minimum retirement age when you retire, you will be subject to the Social Security earnings limit. Any earnings you have from wages or self-employment that exceed that limit ($14,160 in 2011) will cause your special retirement supplement to be reduced or suspended. Second, if you return to work for the federal government, there isn’t any “process” that will prevent the offset of your salary by the amount of your annuity. However, under existing laws, agencies have limited flexibilities to waive that requirement. As you shop around for another job, you’ll have to ask if you’d qualify for such an exemption.

 

Tags: , , ,

Rehiring of a federal annuitant

Bookmark and Share

Q: I am curious about Section 9902(h) of Title 5, United States Code. I retired Dec. 31, 2010, but I have since gone back to work part time as a contractor. I would like to go back full time as an annuitant but I am not sure of all the requirements. Can you give me all the criteria?

A: The main requirements are simple. First, the position needs to be identified as a hard-to-fill position and be one that is critical to the accomplishment of the organization’s mission. Second, the candidate for the position has to have unique or specialized skills or unusual qualifications. A re-employed annuitant who fills such a position will receive both his annuity and the full salary of his new position. He is an at-will employee who is not considered to be a federal employee for retirement purposes. In other words, no additional credit will be given for that time.

Tags: , ,

Rules for rehired annuitants

Bookmark and Share

Q: If a person retired as a GM-14 supervisor under the Civil Service Retirement System, can that person be brought back as a rehired annuitant in a supervisory position?

A: There is nothing in law or regulation that would prohibit that; however, you’d need to check with the agency that is considering hiring you to see whether there is a policy that would prevent such an appointment.

Tags: , ,

Returning to federal work

Bookmark and Share

Q: I retired from the Navy Department and am now looking to apply as a rehired annuitant. where can I submit my resume? 

A: Start be asking the folks in your former activity’s personnel office. If they don’t have the answer, they can ask someone higher up. Concurrently, you can search for job openings posted at www.usajobs.gov.

Tags: , , ,

Rehired under CSRS

Bookmark and Share

Q: I am a Civil Service Retirement System optionally retired rehired annuitant. Because I am under CSRS for retirement, is my salary as a rehired annuitant subject to Social Security withholding?

A: As a pure CSRS rehire, you aren’t subject to Social Security deductions unless you were hired as a senior official. If you were, you’d be covered by CSRS Offset, and Social Security deductions would be mandatory.

Tags: , , , , , , ,