Reemployment in Federal Service

• CSRS Annuity
• FERS Annuity (Basic Benefit)
• Special Information for CSRS/FERS Disability Annuitants Considering Federal Reemployment
• Employment in the Private Sector

CSRS Annuity 

Annuity Stops

Reemployment will cause your annuity to stop if…

• You are a disability annuitant whom OPM has found recovered or restored to earning capacity prior to reemployment;
• You are a disability annuitant who was medically disqualified for continued membership in the National Guard;
• Your annuity is based on an involuntary separation and your new appointment is permanent in nature; or
• You received a Presidential appointment subject to retirement deductions.

 Federal Employees Health Benefits Coverage (FEHB)

If your annuity stops upon reemployment, your health insurance coverage as an annuitant stops.  If your appointment is one that gives you eligibility for FEHB coverage, you can enroll in the program when you are reemployed.

Federal Employees Group Life Insurance Coverage (FEGLI)

If your annuity stops upon reemployment, your life insurance as an annuitant stops without a right to convert to an individual policy.  You acquire life insurance coverage as an employee under the same conditions as any other employee who is rehired in the Federal service.

Future Benefits

When your reemployment ends, a new determination about your rights to retirement benefits will be made.  Your prior retirement benefit generally has no impact on your new retirement benefit.

Annuity Continues

If your annuity does not stop under the rules above, you will continue to receive your CSRS annuity while you are working.  Your pay will be reduced by the amount of your annuity paid for the period you work.  If you do not work full time, the reduction in pay will be adjusted proportionately.

Federal Employees Health Benefits Coverage (FEHB)

If your annuity continues after you are reemployed, your FEHB coverage as an annuitant continues and withholding of premiums continues to be made from your annuity payment.

Federal Employees Group Life Insurance Coverage (FEGLI)

If your annuity continues after you are reemployed, you retain the life insurance you have as a retiree.  However, if the type of appointment you have makes you eligible for FEGLI coverage as an employee, any Basic Life insurance, Standard Option, and Family Optional insurance you have as an annuitant are suspended and you will have coverage as an employee.

Future Benefits

Reemployment may increase your retirement and death benefits.  As a reemployed annuitant, you can earn either a-

• Supplemental annuity, or
• Redetermined annuity.

A supplemental annuity is an annuity that is added on to your present annuity.  If you work as a reemployed annuitant on a full time, continuous basis for at least 1 year, you may be entitled to a supplemental annuity.  If you work part time, you must work a proportionately longer period to earn a supplemental annuity. 

A redetermined annuity is a recomputed annuity that takes the place of your present annuity.  If your reemployment continues for at least 5 years, or the part-time equivalent, you may elect a redetermined annuity.

CSRS reemployed annuitant service cannot be credited in a supplemental or redetermined annuity unless a deposit is paid after separation, or retirement deductions are withheld.  If you are reemployed in a full-time or part-time position, you may elect to have retirement deductions withheld from your pay.  The amount of retirement deductions or deposit is a percentage of your basic pay before it is reduced by the amount of your annuity.

If you die while reemployed, after establishing eligibility for either a supplemental or redetermined annuity, your surviving spouse may have his or her survivor benefit either increased or recomputed. 

FERS Annuity (Basic Benefit)

Annuity Stops

Reemployment will cause your FERS annuity to stop if…

• You are a disability annuitant whom OPM has found recovered or restored to earning capacity prior to reemployment;
• You are a disability annuitant who was medically disqualified for continued membership in the National Guard;

Federal Employees Health Benefits Coverage (FEHB)

If your annuity stops upon reemployment, your health insurance coverage as an annuitant stops.  If your appointment is one that gives you eligibility for FEHB coverage, you can enroll in the program when you are reemployed.

Federal Employees Group Life Insurance Coverage (FEGLI)

If your annuity stops upon reemployment, your life insurance as an annuitant stops without a right to convert to an individual policy.  You acquire life insurance coverage as an employee under the same conditions as any other employee who is rehired in the Federal service.

Future Benefits

When your annuity stops, you have the same status as any other Federal employee employed in an equivalent position with a similar service history.  When you again leave Federal service, you will be entitled to either an immediate or deferred annuity based on this new separation.  Generally, the annuity will be computed on the basis of your service and salary history at the time of the future separation from Federal service.

Annuity Continues

If your annuity does not stop under the rules above, you will continue to receive your FERS annuity while you are working.  Your pay will be reduced by the amount of your annuity paid for the period you work.  If you do not work full time, the reduction in pay will be adjusted proportionately.

Federal Employees Health Benefits Coverage (FEHB)

If your annuity continues after you are reemployed, your FEHB coverage as an annuitant continues and withholding of premiums continues to be made from your annuity payment.

Federal Employees Group Life Insurance Coverage (FEGLI)

If your annuity continues after you are reemployed, you retain the life insurance you have as a retiree.  However, if the type of appointment you have makes you eligible for FEGLI coverage as an employee, any Basic Life insurance, Standard Option, and Family Optional insurance you have as an annuitant are suspended and you will have coverage as an employee. 

Future Benefits

Reemployment may increase your retirement and death benefits.  As a reemployed annuitant, you can earn either a-

• supplemental annuity,or
• redetermined annuity. 

A supplemental annuity is an annuity that is added on to your present annuity.  If you work as a reemployed annuitant on a full time, continuous basis for at least 1 year, you may be entitled to a supplemental annuity.  If you work part-time, you must work a proportionately longer period to earn a supplemental annuity.

A redetermined annuity is a recomputed annuity that takes the place of your present annuity.  If your reemployment continues for at least 5 years, or the part-time equivalent, you may elect a redetermined annuity.  Intermittent service cannot be counted in establishing eligibility for a supplemental or redetermined annuity, and cannot be used in the computation of a supplemental annuity.

If you die while reemployed, after establishing eligibility for either a supplemental or redetermined annuity, your surviving spouse may have his or her survivor benefit either increased or recomputed.

Special Information for CSRS/FERS Disability Annuitants Considering Federal Reemployment

• If you are reemployed on a permanent basis in a position equivalent in grade and pay to the position from which you retired, OPM may find that you have recovered from your disability.
• If you are reemployed subject to medical and physical qualification standards equivalent to those of the position from which you retired, OPM may find that you have recovered from your disability.
• The pay of the position in which you are reemployed, prior to the offset of annuity, will be included as earnings in determining whether the disability annuity will stop due to restoration to earning capacity.
• Receipt of, or continued entitlement to receive, full or partial injury compensation benefits from the Department of Labor’s Office of Workers’ Compensation during reemployment, when those benefits are based on the same injury or medical condition that is the basis for OPM’s award of disability retirement, is conclusive evidence (unless there is contravening medical evident) that you have not recovered from your disability.
• If you are age 60 or over, your annuity cannot be stopped because of your earnings, and OPM can find that you are recovered only if you request to be found recovered.

Employment in the Private Sector

 Effect on Your Basic Annuity:

• If you retired under CSRS or FERS-


CSRS or FERS Basic Benefit

Your employment outside the Federal service will not affect your basic CSRS or FERS annuity payments unless you’re receiving a disability annuity and are under age 60.  If you’re a disability retiree under age 60, you will be subject to the 80% earnings limit.  You reach the 80% earnings limit if, in any calendar year, your income from wages and self-employment is at least 80 percent of the current rate of basic pay for the position from which you retired.

FERS Annuity Supplement

If you are receiving an annuity supplement, it will be reduced based on how much you earn over the Social Security annual earnings limit.