The rules governing service credit for federal employees have enough exceptions and variations to bewilder even the most experienced personnelist. However, the chances of one of them knowing what’s creditable are better at OPM than anywhere else in government. Still, there are moments when even they get it wrong. In this particular instance, it took a case at the Merit Systems Protection Board to change the way that credit is given for one small group of employees and retirees.
In Hatch v. Office of Personnel Management, the MSPB found that an annuitant who worked four hours a day and received OWCP benefits for the other four hours while he was on leave-without-pay should have been treated as a full-time employee for retirement purposes. Their decision rested on the fact that the employee was given a full-time appointment and was using LWOP as provided under 5 U.S.C. 8332. Although Mr. Hatch was a CSRS retiree, OPM concluded that the same rule should be applied to FERS retirees.
In Benefits Administration Letter 07-103, OPM stated that an employee
with a full-time appointment and in receipt of OWCP benefits who works part of the day and is on approved LWOP for part of the day will now be given full-time credit. However, if an employee is not under a full-time appointment (e.g., part-time flexible or limited tour), the usual part-time rules apply. Also the MSPB decision does not apply to reemployed annuitants.
Recognizing that they are in no position to identify every annuitant who would be entitled to benefit under the hatch decision, OPM has asked agencies to review their payroll files (and well as any other records they may have kept) and send them a list of names with identifying information. They can then begin the work of recomputing the annuities of those former employees.
If you fit into this category and are entitled to additional service credit, get in touch with your former agency and ask them to make sure that you are included in any list they send to OPM.
