Reemployment in Federal Service
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.
There is a temporary provision of the law that allows you to be reemployed on a limited basis with receipt of both annuity and salary. See Special Reemployment Provision of PL111-84 
[62 KB].
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 (Option A), and Family Optional (Option C) insurance you have as an annuitant
are suspended and you will have coverage as an employee. If you have Additional Optional (Option B) insurance, you may continue your Option B annuitant, or elect to have it 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.
Special Reemployment Provision of PL111-84 [62 KB] (The National Defense Authorization Act)
Public Law 111-84, approved on October 28, 2009, allows reemployment of CSRS and FERS annuitants on a limited basis with receipt of both annuity and salary. This provision applies to Executive agencies (excluding the Department of Defense and GAO), the Postal Service, and the Judicial and Legislative Branch agencies.
This authority may be used by agencies when they determine that it is necessary to-
- Fulfill functions critical to the mission of the agency, or any component of that agency;
- Assist in the Implementation of oversight of the American Recovery and Reinvestment Act of 2009 or the Troubled Asset Relief Program under title I of the Emergency Economic Stabilization Act of 2008.
- Assist in the development, management, or oversight of agency procurement actions;
- Assist the Inspector General for the agency in the performance of the mission of the Inspector General;
- Promote appropriate training or mentoring programs of employees;
- Assist in the recruitment or retention of employees; or
- Respond to an emergency involving a direct threat to life or property or other unusual circumstances.
Individuals reemployed under this provision, serve under appointments limited to a year or less. An annuitant may not serve under this provision for more than 520 hours of service during the period ending 6 months following the individual's annuity commencing date; for more than 1040 hours of service during any 12-month period; or for more than a total of 3120 hours. Individuals employed under these provisions are not entitled to any additional annuity benefits based upon that employment.
This provision expires on October 27, 2014.
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.
Federal Employees Dental and Vision Program (FEDVIP)
Not receiving an annuity
If you are no longer an annuitant, then your FEDVIP coverage as an annuitant ends. If your appointment is one that gives you eligibility for FEHB coverage, then you may enroll in the FEDVIP program when you are reemployed.
Still receiving an annuity
If you go back to work and you are in a position that conveys FEDVIP eligibility, you must contact BENEFEDS (1-877-888-3337), if you want your premiums to be deducted from your paychecks. Most reemployed annuitants want to make that change because retirees pay FEDVIP premiums with post-tax dollars and employees pay FEDVIP premiums with pre-tax dollars. If your new position does not convey FEDVIP eligibility you may retain the coverage as an annuitant.
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.
There is a temporary provision of the law that allows you to be reemployed on a limited basis with receipt of both annuity and salary. See Special Reemployment Provision of PL111-84 [62 KB].
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 (OOption A), and Family Optional (Option C) insurance you have as an annuitant
are suspended and you will have coverage as an employee. If you have Additional Optional (Option B) insurance, you may continue your Option B annuitant, or elect to have it 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 Reemployment Provision of PL111-84 [62 KB] (The National Defense Authorization Act)
Public Law 111-84, approved on October 28, 2009, allows reemployment of CSRS and FERS annuitants on a limited basis with receipt of both annuity and salary. This provision applies to Executive agencies (excluding the Department of Defense and GAO), the Postal Service, and the Judicial and Legislative Branch agencies.
This authority may be used by agencies when they determine that it is necessary to-
- Fulfill functions critical to the mission of the agency, or any component of that agency;
- Assist in the Implementation of oversight of the American Recovery and Reinvestment Act of 2009 or the Troubled Asset Relief Program under title I of the Emergency Economic Stabilization Act of 2008.
- Assist in the development, management, or oversight of agency procurement actions;
- Assist the Inspector General for the agency in the performance of the mission of the Inspector General;
- Promote appropriate training or mentoring programs of employees;
- Assist in the recruitment or retention of employees; or
- Respond to an emergency involving a direct threat to life or property or other unusual circumstances.
Individuals reemployed under this provision, serve under appointments limited to a year or less. An annuitant may not serve under this provision for more than 520 hours of service during the period ending 6 months following the individual’s annuity commencing date; for more than 1040 hours of service during any 12-month period; or for more than a total of 3120 hours. Individuals employed under these provisions are not entitled to any additional annuity benefits based upon that employment.
This provision expires on October 27, 2014.
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.
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.