How Does Reemployment Affect Your Annuity?

Depending on the details of your retirement, your annuity may be affected once you begin working for the government post retiring. The nature of your job may also play a role in receiving your annuity while employed and receiving a salary. There are several situations where your annuity will continue. However, it will come to a temporary end for many reemployed retirees. This is all heavily reliant upon whether you were a CSRS retiree, FERS retiree, or your position demands emergency employment.

FERS retirees mainly need to be concerned over two specific situations that may have caused their annuity to stop. Disability annuitants were found to have recovered or restored to their full earning capacity by the OPM, and disability annuitants who were awarded a disability annuity without being disabled within a National Guard Technician position. These employment dismissals may have been due to a medical disqualification from National Guard membership.

CSRS retirees, however, must be concerned with four categories when returning to work, including the two previously mentioned concerns. Unfortunately, CSRS employees are among the majority of individuals whose annuity stopped with reemployment. Annuitants who were separated from their job involuntarily, unless required by law, risk their annuity if their new job is more permanent. Another category involves those who receive a presidential appointment, which is subject to retirement deductions.

In the event of an annuity stopping after reemployment with the government, you can rest assured that once you leave employment, they will reinstate it. Entitlement to a deferred or immediate annuity upon recent separation is among the few exceptions. Ultimately, you will maintain the same status many federal employees in the same situation have experienced before you. Depending on the years previously employed, especially for CSRS employees, the government sees it as a retiree choosing to complete a career otherwise interrupted.

Many retirees find themselves meeting the age and service requirements surrounding retirement. Should they choose to return to work for the government, an annuity will continue uninterrupted, except in rare cases. Your annuity may also be affected if another annuity received on the job was the cause of a reduction to your overall compensation. Reemployed annuitants have the choice to receive a supplemental or redetermined annuity. Supplemental annuities are tacked onto a current annuity, whereas a redetermined annuity replaces the annuity you are currently receiving if you have worked a minimum of 5 years.

Select reemployed annuitants have the option to receive their full salary alongside their annuity. This kind of exception depends upon their position, whether it is difficult to retain or recruit a comparably qualified replacement, a threat to government property, a direct threat to life, or additional extenuating circumstances warranting emergency employment. Retirees considering reemployment should speak to an advisor to ensure an official exception applies to their situation.

Contact Information:
Email: [email protected]
Phone: 9143022300

Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial planning.

[email protected]
914-302-2300

Disclosure:
These articles are intended for educational purposes only. Please contact your advisors for legal, accounting or investment advice.