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Old 08-14-2019, 02:21 PM
 
Location: Tennessee
207 posts, read 244,707 times
Reputation: 597

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Does anyone have any experience with going back to work for the federal government as a rehired annuitant? I retired from a federal agency last year and have been offered a position locally with another agency.

As a rehired annuitant I'll keep receiving my monthly retirement annuity but my new federal salary will be reduced by the amount of my annuity. While it's flattering to be in my 60's and recruited to return to work the formula used to calculate my new salary less my retirement seems unreasonable. I realize that this is the federal regulation on rehires it doesn't mean that it's necessarily a good deal. The additional money would be good I can manage without it and I certainly don't need the stress. I already have health insurance and my TSP has been untouched since I retired. I'm not collecting social security yet so that's not an issue.

Does anyone have experience as a rehired annuitant? If so what you do view as the pros and cons? Thanks!


Irish

Last edited by irishcopper; 08-14-2019 at 02:30 PM..
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Old 08-14-2019, 03:18 PM
 
Location: Eastern Washington
14,370 posts, read 45,200,390 times
Reputation: 13081
I don't have any actual experience with this, but, if they essentially dock your pay to compensate for your pension, to me that is vaguely insulting and I wouldn't do it. Now if they inflate your "book" salary such that after taking out for the pension, you are still satisfied with *that* salary, a different deal.



We talked about this in a previous thread, in my mind it would have to be a job that provided a lot of inherent satisfaction to you, to make this worth doing, and the job would have to be pretty much free of negatives like a bad commute, bad boss, fixed hours, dress code, etc.
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Old 08-14-2019, 03:28 PM
 
Location: Texas or Cascais, Portugal
3,471 posts, read 3,222,830 times
Reputation: 8401
Known plenty who have done it. None lasted more than 6 months. After a lifetime of bureaucracy, why would anyone think it's going to be different going back as an annuitant?
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Old 08-14-2019, 04:58 PM
 
Location: Location: Happy Place
3,742 posts, read 1,914,569 times
Reputation: 11517
I retired from the feds 18 months ago. While employed there, we had several RAs in our office. Many did little work, came and went as they pleased, just drawing a salary. The agency I retired out of apparently had difficulty hiring professional types.
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Old 08-15-2019, 12:28 AM
 
Location: on the wind
7,498 posts, read 3,121,922 times
Reputation: 25387
Quote:
Originally Posted by nurider2002 View Post
Known plenty who have done it. None lasted more than 6 months. After a lifetime of bureaucracy, why would anyone think it's going to be different going back as an annuitant?
I've known two former colleagues who did this, but they took on specific projects that were mutually agreed upon; sort of a subject matter expert emeritus approach. They didn't do it primarily for the salary or benefits, they did it because they wanted to start and focus on projects they never had time to tackle while employed, and because they enjoyed staying engaged. The motivation behind going back was probably why it worked for them.
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Old 08-15-2019, 01:03 AM
 
Location: Las Vegas & San Diego
303 posts, read 52,036 times
Reputation: 324
Why not go back as a contractor - I know a few who did that - get retire pay plus full salary. Most contractor companies will take someone on with guaranteed position. Contractor can do most everything except inherently government decisions/actions.
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Old 08-15-2019, 03:54 AM
 
Location: R.I.
1,030 posts, read 629,220 times
Reputation: 4454
Quote:
Originally Posted by irishcopper View Post
Does anyone have any experience with going back to work for the federal government as a rehired annuitant? I retired from a federal agency last year and have been offered a position locally with another agency.

As a rehired annuitant I'll keep receiving my monthly retirement annuity but my new federal salary will be reduced by the amount of my annuity. While it's flattering to be in my 60's and recruited to return to work the formula used to calculate my new salary less my retirement seems unreasonable. I realize that this is the federal regulation on rehires it doesn't mean that it's necessarily a good deal. The additional money would be good I can manage without it and I certainly don't need the stress. I already have health insurance and my TSP has been untouched since I retired. I'm not collecting social security yet so that's not an issue.

Does anyone have experience as a rehired annuitant? If so what you do view as the pros and cons? Thanks!


Irish

I work in VA healthcare and have known several retired doctors and nurses that have come back to work, but they did it in a contractor status so that they would get their full pension along with whatever pay was offered to them to work as a contractor. You may want to discuss this as an option, and if the agency wants you back bad enough they will make that status happen.
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Old 08-15-2019, 04:28 AM
 
Location: Ypsilanti, MI
2,492 posts, read 3,708,136 times
Reputation: 4901
I am beginning to think the best part of these retiree return to work offers is the emotional rush from receiving the phone call. "They want me back!" "They need me!"

My current employer uses a lot of retirees in part-time positions doing effectively the same work they did before retirement. So assume a person retires who was making a salary equivalent to $60/hour, and they return as a Contracted 1099 Part-timer making $95/hour. Out of this additional $35/hour the retiree pays the other half of the FICA and Medicare costs - applied to the $95/hour wage rate.

And then assuming they are not yet FRA and are collecting SS benefits, they are also subject to the "$1 for $2 Reduction" to their SS benefits. And even working only 20 hours per week means they are still tied to their job and not free to do whatever they desire.

If their Spouse has chosen to work for another year or two, then maybe these part-time gigs can fill otherwise idle time and will provide additional income. I don't see them as being the gold-mine that many younger workers envision whenever they see another retiree back at work.
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Old 08-15-2019, 06:16 AM
 
Location: Herndon, VA
2,106 posts, read 2,148,011 times
Reputation: 7502
Quote:
Originally Posted by ddeemo View Post
Why not go back as a contractor - I know a few who did that - get retire pay plus full salary. Most contractor companies will take someone on with guaranteed position. Contractor can do most everything except inherently government decisions/actions.
This is my first thought to this issue. Unless the position will eventually increase your pension, why bother?
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Old 08-15-2019, 06:23 AM
 
Location: the Old Dominion
310 posts, read 157,080 times
Reputation: 1475
Default ...why even bother...

Quote:
Originally Posted by MI-Roger View Post
I am beginning to think the best part of these retiree return to work offers is the emotional rush from receiving the phone call. "They want me back!" "They need me!"

My current employer uses a lot of retirees in part-time positions doing effectively the same work they did before retirement. So assume a person retires who was making a salary equivalent to $60/hour, and they return as a Contracted 1099 Part-timer making $95/hour. Out of this additional $35/hour the retiree pays the other half of the FICA and Medicare costs - applied to the $95/hour wage rate.

And then assuming they are not yet FRA and are collecting SS benefits, they are also subject to the "$1 for $2 Reduction" to their SS benefits. And even working only 20 hours per week means they are still tied to their job and not free to do whatever they desire.

If their Spouse has chosen to work for another year or two, then maybe these part-time gigs can fill otherwise idle time and will provide additional income. I don't see them as being the gold-mine that many younger workers envision whenever they see another retiree back at work.
Once a month, the retirees get together for lunch. At 58, I am the kid. One of our guys who retired five years ahead of me was there. He is a regular to these lunches, I am not. He is a good person and I like him a lot. We are not friends (none of the people there are, although some believe otherwise).
Shortly after Herman's retirement (he was noticeably bitter his last day of work), he contracted for the government out of state. Lots of traveling. Then he contracted locally at the previous place of employment. Gauche in my opinion, but he did it. He was very proficient at his craft and enjoyed the sense of being needed.
Just yesterday walking into the restaurant for lunch, he informed he was back at the old installation. As a contractor, I asked. No, full time regular employee. I could not help thinking how pathetic it was. I also found myself sitting with the more settled retirees. Away from those who ceaselessly talk shop. And gripe. And miss the good ole days.
I know people run into hard times in retirement and you do what you have to do, but such was not the case here.
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