In my last article, I talked about OPM’s publication of final regulations that expanded the circumstances under which the dual compensation rule could be waived when an agency has a need that could be resolved by hiring a retiree and allowing that employee to receive both his annuity and the salary of the position.
This time I want to talk about OPM’s legislative proposal that would amend the law to permit agencies to reemploy federal retirees on a limited basis without having their annuity offset from their salary, the way it usually is today. Under the proposal, which would cover all three branches of government and the U.S. Postal Service, the reemployment would be limited to a maximum of 520 hours in the first six months following retirement, 1,040 hours in any 12-month period, and a life-time total of 6,240 hours.
Just as is true of the dual compensation waiver provision, rehired federal retirees would not be considered to be federal employees for retirement purposes. As such, they wouldn’t be eligible for any additional retirement benefits, such as a supplemental annuity. Further, the premiums for any insurance benefits to which they might be entitled would continue to be deducted from their retirement annuities.
The good news is that OPM’s legislative proposal has been introduced in the Senate, with Senators Collins, Warner and Voinovich as sponsors. The bill number is S-2003. In the House, the main sponsor is Rep. Tom Davis, bill number HR-3579. However, considering how late it is in this session of Congress, the odds of it going anywhere this year are slim.
