OPM Issues Guidance on How to Partially Retire

musicman/Shutterstock.com

The Office of Personnel Management has released additional details on the phased retirement option for eligible federal employees, spelling out implementation plans for the proposal signed into law nearly one year ago.

Phased retirement -- which allows eligible federal employees to work part time while collecting prorated pension payments -- was included as a provision in last year’s transportation bill. OPM guidelines -- which will be officially published Wednesday in the Federal Register -- regulate eligibility, compensation, benefits and hundreds of additional facets of the new retirement option.

All retirement-eligible employees working full time in federal service for the previous three years are eligible for phased retirement, OPM said, though the agency must consent to the arrangement. An employee “does not have an entitlement” to partially retire.

Partially retired employees will spend half their time working, according to OPM, meaning they will work 20 hours per week. These employees will receive half of the normal pay of the position, as well as half their normal retirement annuity. Salary increases will be calculated based on normal pay raises, while annuity payments would increase proportional to cost of living adjustments.

Most other benefits -- such as health benefits, the Federal Employee Group Life Insurance benefit, survivor benefits and annuity garnishment protection -- are calculated as if the partial retiree were still a full-time employee.

Employees in phased retirement can return to full-time work with their agency’s approval, but they can only work half-time while partially retired except in “rare and exceptional circumstances.”  

The federal government can use phased retirement as “a tool to ensure continuity of operations and to facilitate knowledge management,” OPM said. The new partial retirement rules will provide departing workers with financial incentive to stay on part time and train new employees; partial retirees will earn more than those in full retirement.

Partial retirees must dedicate at least 20 percent of their working hours to “mentoring activities as defined by an authorized agency official.” 

Interested parties have 60 days from Wednesday to submit comments to OPM before the new guidance takes effect. 

(Image via musicman/Shutterstock.com)

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.