Civil Service Retirement System (CSRS) annuitants and Federal Employees Retirement System (FERS) annuitants who are reemployed in federal civilian jobs, including the U.S. Postal Service, will have their pay reduced unless there is an authorized exception. If an offset applies, annuitants receive their full annuity check, but their pay is reduced by the amount of the annuity they receive while employed.

However, there are various exceptions to this general policy, the most recent of which was enacted last year to allow agencies to rehire annuitants without an offset for up to 520 hours in the first six months after retirement, up to 1,040 hours during any 12-month period and up to 3,120 hours total.

Allowable purposes for these “limited time” appointments include meeting mission needs, training or mentoring employees, responding to emergencies, and assisting in special needs including procurement actions and duties of the agency’s inspector general. Agencies must justify their actions if such hiring exceeds 1 percent of their workforce and in no case can reemployed annuitants exceed 2.5 percent.