U.S. Senator Susan Collins, Ranking Member of the Senate Committee on Homeland Security and Governmental Affairs, today introduced legislation designed to enhance the federal government’s ability to respond to the potential loss of the nearly 1.8 million federal employees who are eligible for retirement in the next decade. This important legislation would authorize federal agencies to reemploy retired federal employees on a limited basis, without forcing the employee to take a reduction in salary corresponding to their retirement annuity. The reemployment would be limited to a maximum of 520 hours (65 days) in the first six months following retirement, 1,040 hours (130 days) in any 12-month period, and a total of 6,240 hours (780 days) for any one employee. While the individuals would receive both salary and annuity payments, they would not be considered employees for the purposes of retirement and would receive no additional retirement benefits based on their service.
“This legislation will prove vital as the federal government loses many of its skilled, experienced, senior employees,” said Senator Collins. “Nearly 4,500 federal retirees have returned to work on a full-time basis—demonstrating the importance of these experience employees to federal operations. My legislation would provide agencies with needed flexibility to bring retirees’ experience back into the federal workforce for limited-time or limited-scope projects, provided needed mentoring and training for the next generation of our federal workforce.”
The federal government currently loses over 50,000 employees per year to retirement. The Office of Personnel Management (OPM) estimates that 60 percent of the current federal workforce of three million will be eligible to retire in the next ten years. At present, if a federal retiree returns to work on a part-time basis, they must take a pay reduction to offset their federal retirement annuity.
OPM Director Linda Springer recently noted, “Modifying the rules to bring talented retirees back to the Government on a part-time basis without penalizing their annuity would allow federal agencies to rehire recently retired employees to assist with short-term projects, fill critical skill gaps and train the next generation of federal employees.”
Senator Collins legislation was quickly endorsed by the National Active and Retired Federal Employees Association (NARFE), and the Partnership for Public Service. In a letter to Senator Collins, NARFE President Margaret Baptiste noted, “We commend you for your interest in enabling federal annuitants to continue to make critical contributions to our safety and well-being during this time of national need and we look forward to working with you on this important legislation.”