What is my employment status?

 

Reemployed annuitants serve at the pleasure of the appointing official.  If you are reemployed, you may be terminated without adverse action procedures, and will not be subject to the mandatory separation provisions of the retirement law. 

 

Under certain circumstances, you may be considered an employee, with all the applicable rights and privileges.  For example, if you are disability annuitant found recovered or restored to earning capacity, your retirement was for discontinued service based upon involuntary separation, or you retired from a retirement system not covered under the Civil Service Retirement and Disability Fund, you may be considered an employee upon reemployment.

 

For more information please contact the This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

What happens to my Federal Employees Health Benefits (FEHB) coverage upon reemployment?*

 

• If you are already enrolled in FEHB, your health coverage will be transferred from OPM to DHS OIG so that premiums can be deducted from your salary on a pre-tax basis (premium conversion).  You can waive premium conversion to remain your FEHB enrollment at OPM.

Please note—If you have Medicare coverage, it will pay secondary to your FEHB because you are working.

• If you don't have FEHB coverage and your new appointment is permanent (not limited to a year or less), you may enroll within 60 days of your reemployment.  To continue newly acquired health coverage when you separate again, you must be enrolled in the FEHB program for at least the 5 years immediately before separation and you must be eligible for at least a supplemental annuity based on your reemployment.

• If you don't have FEHB coverage and your new appointment is temporary (for one year or less), you are not immediately eligible to enroll for FEHB.  If your appointment is extended (so that your continuous employment is more than a year), you will be able to elect coverage as an employee.  If you elect coverage as a temporary employee, you must pay the full premium, including the Government’s share.

 

Upon reemployment, you will be provided with additional information and election choices, if applicable.

 

Part-Time Work Schedule:  If your work schedule is part-time and you elect coverage as an employee, you are entitled to only a prorated Government contribution towards the cost of your premium, based on the number of hours you are scheduled to work per pay period.  If you already have health coverage as a retiree, it may be to your benefit to maintain your coverage through the retirement system.

 

Intermittent Work Schedule:  If your work schedule is Intermittent, you are not eligible to elect FEHB coverage.  If you are already enrolled, your enrollment should remain at OPM.

 

What happens to my Federal Employees Dental & Vision Insurance Program (FEDVIP) coverage?*

 

If you are covered under FEDVIP through the retirement system, OPM will continue to withhold premiums from your annuity and BENEFEDS (1-877-888-3337) will continue to serve as your insurance contact.

 

If your appointment is permanent, or continues for a period of more than one year:

 

• You may elect to enroll as an employee to take advantage of pre-tax premiums.

• You do not have coverage under the FEDVIP, you may enroll within 60 days of being reemployed.  FEDVIP coverage will be continued into subsequent retirement.

 

Intermittent Work Schedule:  If your work schedule is Intermittent, you are not eligible to enroll as an employee.

 

 

What happens to my Federal Employees’ Group Life Insurance (FEGLI)?

 

If you are reemployed in a permanent appointment (not limited to one year or less) and have had a break in service of at least 180 days, you may elect FEGLI coverage if:

 

• You are not insured as an annuitant

• You are insured, you may elect more coverage than you carried in retirement. 

 

A new election must be received within 60 days of your appointment.

 

• If you are already enrolled, your Basic, Option A, and/or Option C coverage will automatically be suspended by OPM, and your coverage will be carried as a DHS OIG employee.  Coverage and premiums will be based on unreduced salary, with applicable death and dismemberment benefits (if any).

• If you are already enrolled for Option B coverage in retirement, and elect Option B coverage as an employee, your coverage as an annuitant will be suspended by OPM.  If you do not elect Option B as a reemployed annuitant, your Option B coverage will remain with OPM.

• If you are reemployed in a temporary appointment (limited to one year or less) and do not currently have FEGLI, you are not eligible to enroll.

 

Upon reemployment, you will be provided with additional information and election choices, if applicable.
 

Part-Time Work Schedule:  The amount of your life insurance coverage is based on your annual pay.  For part time employees, your “annual pay” is your basic salary multiplied by the percent of full-time hours that you are scheduled to work.  For example, if you are reemployed with a basic salary of $100,000/year and work 40 hours per pay period (50% of a full time work schedule), your life insurance coverage is based on annual pay of $50,000. [Also see #2. below regarding coverage levels & payout amounts.]

 

Intermittent Work Schedule:  If your work schedule is Intermittent, you may not participate.

 

1.   What happens to my life insurance if I die as a reemployed annuitant?

• Basic Insurance:  The amount of benefits payable will be either the amount suspended as an annuitant, less any post-65 reductions, or the amount carried during reemployment, whichever is higher.

• Option A:  The amount of benefits payable will be the amount carried during reemployment.

• Option B:  The amount of benefits payable will be whichever coverage you elected to have—either the amount carried as an annuitant, or the amount elected in reemployment—regardless of which amount is higher.

2.   If I acquire life insurance while reemployed, can I continue that when I separate?

 

If you are eligible for a supplemental or recomputed annuity upon termination of your appointment, you may carry any newly acquired FEGLI coverage into retirement if you meet the five-year/all opportunity FEGLI continuation requirement.

 

3.   What if I waive my life insurance?

 

If you decline or waive FEGLI coverage as a reemployed annuitant, you are also waiving coverage as an annuitant.  This waiver may be irrevocable.

CONTINUITY OF COVERAGE

 

What is Continuity of Coverage?

 

If you retire and are reemployed with a break in service of no more than three days (30 days for TSP, 60 days for a FSA), OPM’s Continuity of Coverage rule may apply, regardless of the type of appointment you occupy.  Under this rule, some of your benefits will be treated as if you had not separated, but remained a federal employee.  Your health and life insurance, FSA, TSP (if applicable), & retirement contributions will continue.

 

Intermittent Work Schedule:  The Continuity of Coverage rule does not apply if you are reemployed on an intermittent work schedule.

 

Waiver of Salary Offset:  If you receive a waiver of salary offset, the Continuity of Coverage rule will apply to your benefits—except retirement coverage and TSP. 

 

Please note—Reemployed Annuitants with a waiver of salary offset are not eligible for retirement coverage or TSP, even if there is no break in service before reemployment.

 

1.   May I contribute to the TSP?

 

As a reemployed annuitant, you are eligible to participate in the TSP, and you may contribute up to the current Internal Revenue Service (IRS) annual limit, for 2012 the limit is set to $17,000. 

 

Annuitants age 50+ may make an additional annual “catch-up” contribution, for 2012 the limit is set to $5,500.  TSP contributions are based on your basic pay before it is offset.

 

• If you are reemployed within 30 days of retirement, contributions will begin at the same rate as when you separated and will be invested according to your last contribution allocation on file with the TSP.

• If you are reemployed more than 30 days after retirement, you will automatically be enrolled to contribute 3% of your basic pay.  If you have an existing TSP account, contributions will be invested according to your last contribution allocation on file with the TSP.  Otherwise, contributions will be invested in the “G” fund.

 

You may request to stop automatic contributions and to have those withheld refunded 

 

2.   What if I am receiving monthly payments from the TSP?

 

Monthly payments you are receiving from the TSP will stop.  When you subsequently separate, you may resume monthly payments or make another withdrawal election.  If you are receiving monthly payments from an annuity purchased with your TSP funds, those will continue.

 

Intermittent Work Schedule:  If you are a FERS annuitant and are reemployed in on intermittent work schedule, you may not contribute to the TSP.

 

Waiver of Salary Offset:  You may not contribute to the TSP.  If you are receiving monthly payments from the TSP, those will not stop.

 

 

May I establish an FSA as a reemployed annuitant?

 

FSA is designed to allow you to pay for eligible out-of-pocket health care and dependent care expenses with pre-tax dollars. 

 

If you are reemployed within 60 days of retirement, but before the end of the same tax year, your previous election will be reinstated, and you will be required to make-up missed allotments.   You may not change the amount of your election unless you have experienced a Qualifying Life Event (QLE) during your separation.

 

If you did not have a FSA or are being reemployed more than 60 days after your retirement, you may elect to establish a FSA within 60 days of your reemployment or during the annual benefits open season.  You may not participate if you are expected to work less than six months in a calendar year.  The following provisions also apply:

 

• Health Care FSA— If you are eligible for FEHB coverage (your appointment is permanent or after one year of current continuous employment in a temporary position), you are eligible to open a Health Care FSA.  Your contributions will terminate on the date of your separation from reemployment.  Expenses incurred before that date will be reimbursed.

• Dependent Care FSA—If you have eligible dependents, you are eligible to open a Dependent Care FSA.  Your contributions will terminate on the date of your separation from reemployment, but you may continue to be reimbursed for expenses until the end of the benefit period or until your account balance is exhausted, whichever is sooner.

Intermittent Work Schedule:  If your work schedule is Intermittent, you may not participate.

 

 

Am I eligible to enroll for FLTCIP?

 

If you are being reemployed to a permanent position or a position that is extending beyond one year, you may apply for FLTCIP using the Abbreviated Underwriting Application within 60 days of your appointment (or extension beyond one year). 

 

If your appointment does not convey FEHB eligibility, as an annuitant , you are still eligible to apply for long term care insurance at any time using the Full Underwriting Application. 

 

For more information, visit the LTCI Partners website or contact directly at 1-800-582-3337 or TTY 1-800-843-3557.

 

 

1.   If I retired under the Federal Employees Retirement System (FERS), what retirement coverage do I have as a reemployed annuitant?

 

You will be covered under FERS and deductions will be taken from your salary.

 

2.      If I retired under the Civil Service Retirement System (CSRS), what retirement coverage do I have as a reemployed annuitant?

 

You will not have any retirement coverage upon reemployment, but you may elect to have CSRS retirement deductions withheld. 

If you retired under CSRS-Offset, you may elect to have CSRS-Offset deductions withheld (full CSRS deduction, minus the Social Security withholding).  Social Security deductions are withheld after salary is offset.  If you are a Discontinued Service Annuitant (appointed to a covered position) and your break in service was for more than a year, or your appointment is to a senior official position, you will be subject to CSRS-Offset coverage.  Retirement deductions are prospective only, and your election is irrevocable.

 

3.      May I elect to transfer to FERS?

 

If you were previously covered under CSRS and are reemployed in a permanent appointment after at least a 4-day break, you will have a 6-month opportunity to elect a transfer to FERS.  FERS is a three-tiered retirement system consisting of Social Security, the FERS Basic Benefit Plan, and the Thrift Savings Plan (TSP).

 

With FERS coverage, you will be entitled to the Thrift Savings Plan (TSP) Agency Automatic 1% contribution as well as matching contributions, dependent upon the amount of pay you voluntarily choose to contribute.

 

Intermittent Work Schedule:  No retirement deductions are withheld for intermittent work schedule, and you will not be entitled to any additional service credit towards a supplemental or re-determined annuity.

 

Waiver of Salary Offset:  If you receive a waiver of salary offset, you will pay into Social Security and Medicare only.  You are not entitled to retirement coverage, cannot transfer to FERS, and will not receive credit towards either a supplemental or re-determined annuity.

 

 

1.   How much leave will I earn?

 

Reemployed annuitants earn leave in the same manner as other employees. 

 

Annual leave accruals are based on all federal service, including the service counted towards your earlier retirement.  If you have at least 15 years of creditable service, you will be placed in the 8-hour annual leave earning category.  If you have at least 3, but less than 15 years of creditable service, you will accrue 6 hours of annual leave per pay period. 

 

Sick leave accumulates at the rate of 4 hours per pay period.

Part -Time Work Schedule:  If your work schedule is part time, you will earn leave on a prorated based, depending upon the number of hours worked per pay period.

 

Intermittent Work Schedule: If your work schedule is intermittent, you cannot earn leave or compensatory time (regardless of the length of your previous creditable service), and you do not use leave.  Time worked in excess of 8 hours in a day (if any) is paid as overtime.

 

2.   Will any previous sick leave be re-credited to me?

 

If you were covered by the Civil Service Retirement System (CSRS or CSRS-Offset), and retired with an immediate annuity, your previous sick leave was used to give you additional service credit in the computation of your annuity, and you are not entitled to have any of it restored. 

 

If your retirement was deferred, you may be entitled to have your former sick leave balance re-credited.

 

If you were previously covered by the Federal Employees' Retirement System (FERS), 

you may be entitled to have your previous sick leave--your entire sick leave balance if you retired prior to 10-28-09 with entitlement to an immediate annuity, or 50% of your sick leave balance if you retired after 10-28-09--re-credited upon reemployment. 

If you think you may be entitled to have your previous sick leave balance reinstated, please bring that to the attention of our This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

Intermittent Work Schedule:  If your work schedule is intermittent, you are not eligible for earn or use leave; therefore, no sick leave will be re-credited.

 

3.   I expect to be reemployed immediately or soon after retirement, am I required to take the lump sum annual leave payment, or may I carry this leave into reemployment?

 

If you are reemployed with no break in service (not even one day), you retain your annual leave balance (up to your leave ceiling, usually 240 hours) and should not receive a lump sum payment.  Please contact our This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it if you expect to be reemployed, to quickly avoid an inappropriate payment for your annual leave.  Bear in mind that you are subject to the same limit as other employees regarding "carryover leave"; therefore, if you are reemployed without a break in service toward the end of a leave year and have retained a high balance of leave, you run the risk of losing leave over the allowable maximum at the end of the leave year.

 

If you are reemployed after a break in service of one work day or more, you are eligible to receive a lump sum payment for your unused annual leave.  However, if you are reemployed before you could have used all of the leave reflected in the payment, you will be required to repay all the leave that exceeded the length of your break in service.  The payment must be made to your new agency and will result in restoration of the unused annual leave. 

 

Please Note: If circumstances require such a repayment, it is important to note that the repayment is a debt that cannot be waived and typically must be repaid within one year of reemployment.  Since this could result in a substantial financial obligation, you should determine whether repayment will be required before accepting this or another federal position.

 

If you will be retiring in the near future and anticipate reemployment, your losing and gaining payroll offices may be able to coordinate a payment for only the period of your break in service. 

 

Intermittent Work Schedule:  Employees on intermittent work schedules cannot earn or use leave, you will not be required to repay any lump sum annual leave payment received following your retirement (even if the time period covered by the payment has not elapsed).

 

SALARY OFFSET

 

1.   How will receipt of my annuity affect my salary?

 

As a reemployed annuitant, your salary is reduced ("offset") by your FERS or CSRS annuity payment.  To compute the reduced hourly rate of pay, use the following formula:

1. Gross monthly annuity x 12 months = annual annuity
2. Annual annuity divided by 2087 hours = hourly annuity
3. Hourly pay of rehired grade/step – hourly annuity = hourly salary rate payable

Example:   Gross Monthly Annuity = $1,000

                  Hourly pay of rehired grade/step = $20

1. $1,000 x 12 months = $12,000 gross annual annuity
2. $12,000 / 2087 hrs. = $5.75 hourly annuity
3. $20 - $5.75 = $14.25/hr.

Salary upon reemployment would be $14.25 per hour.

 

2.   What is a waiver of salary offset?

 

A waiver of salary offset (sometimes called a “dual compensation waiver”) allows you to receive the full amount of your annuity, as well as the full amount of your reemployment salary.  Because you are receiving the benefit of two incomes, you will not receive any additional retirement credit for your reemployment service and are not eligible to continue any benefits acquired during that service into retirement when you separate again.

 

Waivers may be granted by the Office of Personnel Management (OPM) or your agency to be used for certain limited purposes, and for limited periods of time.  If you are reemployed without a waiver of salary offset, your reemployment salary will be “offset” (reduced) by the amount of your annuity.

 

3.   What if I previously was reemployed with a waiver of salary offset?

 

You must disclose this, and may be required to provide information including the agency you worked for, the dates you were employed under a waiver, and the authority under which the waiver was granted.

 

4.   What if my appointment changes, allowing me to begin or causing me to stop receiving a waiver of salary offset?

 

Many benefits are affected based upon whether or not you have a waiver of salary offset. 

 

If you are employed with a waiver of salary offset and your status changes, please notify our This e-mail address is being protected from spambots. You need JavaScript enabled to view it as soon as possible!

 

WORK SCHEDULE

 

What if my work schedule changes?

 

Many benefits are affected based upon work schedule (part time, full time, or intermittent).  

If your work schedule changes, please contact your Benefits Specialist as soon as possible!

 

INCREASED ANNUITY EARNED FROM REEMPLOYMENT

 

1.   Will my future annuity increase, based upon my reemployment?

 

A supplemental annuity is an annuity that is added to your present annuity.  As a reemployed annuitant, if you work full-time for at least one year and have contributed to the appropriate retirement system, 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 re-determined annuity is a recomputed annuity based on your entire service, takes the place of your present annuity, and is calculated as if you were retiring for the first time.  If you complete at least five years of full-time service (and/or the part-time service equivalent to that) and have contributed to the appropriate retirement system, you may elect to have your annuity re-determined, in lieu of a supplemental annuity.  You would be eligible to make new elections and decisions regarding survivor benefits, civilian service credit, post-1956 military deposit, and waiver of military retired pay.

 

CSRS reemployed annuitants may elect to have CSRS contributions withheld from salary, or to make a lump sum payment (plus interest) to the retirement system following separation.

 

FERS reemployed annuitants are automatically subject to retirement deductions.

 

2.   What if I complete less than one year of full time employment (or the equivalent)?

 

A reemployed annuitant, who separates from reemployment without title to either a supplemental or re-determined annuity, is entitled to a refund of all retirement deductions withheld during reemployment.

 

3.   What if I elect to transfer to FERS upon reemployment?

 

If you elect to transfer to FERS, your CSRS annuity benefit will continue and your salary will be offset by your annuity, as usual.  However, at separation, you must apply for retirement benefits under the FERS Basic Benefit Plan provisions.  Your annuity will be increased to reflect the FERS component, provided you were reemployed for at least one-year on a continuous full-time or part-time (equivalent to at least one-year of full-time service) basis.

 

Intermittent Work Schedule:  If your position is intermittent, no retirement deductions will be withheld, and you will not be entitled to a supplemental or re-determined annuity.

 

Waiver of salary offset:  If you receive a waiver of salary offset, no retirement deductions will be withheld, and you will not be entitled to a supplemental or re-determined annuity.

 

DOCUMENTATION REQUIRED

 

1.   What does my employing office need in order to determine my pay, leave, and benefits?

 

If you are reemployed, you will be required to provide:

 

• Your retirement claim number (usually beginning with “CSA…”).

• Documentation of the amount of annuity you receive, including future changes to that amount, as you receive them).

• Your current deductions for benefits including FEHB and FEGLI coverage. 

We will also need to know if your retirement is maintained under another federal retirement system (such as the Foreign Service Pension System, Tennessee Valley Authority, etc).

 

2.    What if I am a disability annuitant?

 

If you receive a disability annuity from OPM and have been found to be recovered or restored to earning capacity, you are required to provide a copy of OPM’s decision. 

If there is reasonable question of your ability to perform, you may be required to submit medical documentation or subject to a pre-employment examination.

 

3.    What if I received a Voluntary Separation Incentive Payment (VSIP)?

 

If you separated from the executive branch with a VSIP and are reemployed within five years, you may be required to repay the entire amount before reemployment.  Provide documentation showing the amount and date of the VSIP payment.

 

4.   What other information will I be required to provide?

 

You may be required to provide documentation of your retirement, including a copy of the Notification of Personnel Action (SF-50) under which you were separated. 

If your separation was involuntary; if you retired under the FERS MRA +10 Option and have not yet received any postponed annuity payments; if your annuity is based on five or more years of Congressional service, or if you receive full or partial injury compensation from the Department of Labor’s Office of Workers’ Compensation, additional information or documentation may be required.