OPM Plan: Older Employees could Work Part-time, Earn Part-time Annuity
February 14, 2012
The Office of Personnel Management wants to allow older federal employees to ease into their retirements on a part-time basis.
Under this plan — which was proposed as part of the White House's fiscal 2013 budget released Monday — employees nearing retirement would be able to continue working part-time, while receiving a partial annuity. They would also continue earning additional retirement benefits proportionally based on their part-time service.
The administration sees this as a way to improve succession planning and knowledge management while saving $720 million over the next decade. Agencies would save by not having to immediately replace employees phasing into retirement, and by delaying payment of full retirement benefits, the budget said. It could also reduce the government's need to temporarily rehire retirees to fill critical skills gaps. Those rehired annuitants are now paid both their full salaries and pensions.