Reemployment may increase your retirement and death benefits. As a reemployed annuitant, you can earn either a supplemental annuity or a redetermined annuity. A supplemental annuity is an annuity that is added on to your present annuity. A redetermined annuity is a recomputed annuity that takes the place of your present annuity. If you work as a reemployed annuitant on a full time, continuous basis for at least one year, you may be entitled to a supplemental annuity. If you work part time, you must work a proportionately longer period to earn a supplemental annuity. If your reemployment continues for at least five years, or the part-time equivalent, you may elect a redetermined annuity.
Intermittent service cannot be counted in establishing eligibility for a supplemental or redetermined annuity and cannot be used in the computation of a supplemental annuity.
If you die while reemployed, after becoming eligible for either a supplemental or redetermined annuity, your surviving spouse may have his or her survivor benefit either increased or recomputed.
When it comes to crediting reemployed annuitant service, the rules are different under CSRS/CSRS-Offset and FERS. CSRS/CSRS-Offset time cannot be credited unless the reemployed annuitants (1) have retirement deductions withheld from their pay or (2) they make a deposit after separation. FERS reemployed annuitants have no such option. Deductions from pay are mandatory.
In either case, the amount of money required to get credit for the service of reemployment is a percentage of your basic pay before it is reduced by the amount of your annuity.