OPM Issues `Phased Retirement’ Final Rule Allowing Part-Time Work for Future Retirees

Federal employees who are retirement-eligible will be able to transition from full-time to part-time status while continuing to earn additional retirement benefits under a final rule from the Office of Personnel Management scheduled for publication in the Aug. 8 Federal Register.

Under the final rule, an eligible federal employee who enters “phased retirement” will work half-time and receive half of what his or her annuity would have been had the individual retired completely from federal service.

During phased retirement, the employee is considered a part-time federal employee, not a re-employed annuitant. For example, phased retirees will continue to receive the ...