re-employment as a FERS annuitant

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Hello…I retired from DOD on Mar 2018 and have been hired by the Dept of Commerce for a temporary part-time position. Will my annuity be reduced by the amount I receive from the Dept of Commerce?

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Asked on August 20, 2019 5:44 pm
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No, your pay will at the Department of Commerce be reduced by the amount of your annuity. I strongly urge you to check with your new employing agency to determine the amount that will be offset fro your salary and if you will earn enough to reduce or lose your FERS Retiree Supplement. You can find detailed information on this topic in the CSRS FERS Handbook, Chapter 100: https://www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c100.pdf
When an annuitant is reemployed, the annuity continues, and the amount of annuity that applies to the period of reemployment is offset from the reemployed annuitant’s salary. Retirement deductions also are withheld even if the reemployment is under a temporary appointment. If you do not work enough to earn either a supplement or redetermined annuity, you are still required to pay into the retirement fund.
The following general rules apply to FERS annuitants whose annuity continues upon reemployment.
1. The pay received during reemployment is offset by the allocable amount of annuity
2. FERS retirement deductions are mandatory
3. Eligibility for a supplemental annuity accrues after 1 actual, continuous year of full-time reemployment, or the part-time equivalent.
4. Eligibility for a redetermined annuity accrues after 5 or more actual, continuous years of full-time reemployment, or the part- time.
5. Social Security deductions are withheld on the amount of salary after the reduction for the annuity payable.
EXCEPTION: The above rules do not apply when a reemployed annuitant is approved for waiver of offset of pay under exceptional or unusual circumstances.

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Posted by (Questions: 0, Answers: 485)
Answered on August 20, 2019 6:08 pm