**SUBJECT: Reemployment of Annuitants into Acquisition-Related
Positions**

837-1-10 Purpose

837-1-20 Background and Authority

837-1-30 References

837-1-40 Coverage and Exclusions

837-1-50 Responsibilities

837-1-60 Appointments

837-1-70 Waiver Requests

837-1-80 Documentation, Reporting and Accountability

Exhibit A Sample: Statement of Understanding

Exhibit B Sample: Request for Appointment of a Reemployed Annuitant
without Salary Offset

Exhibit C Sample: Case File Checklist

Exhibit D Sample: Notification of Reemployment of an Annuitant

**837-1-10 PURPOSE**

This Instruction sets forth the HHS policy for reemploying annuitants
into acquisition-related positions without discontinuing their annuity
or offsetting their salary during the period of reemployment.

20. **BACKGROUND AND AUTHORITY**

On October 6, 2006, the President signed into law the General Services
Administration Modernization Act (P.L. 109-313), which allows Federal
agencies to hire retired annuitants to fill critical vacancies in the
acquisition field. The new legislation allows agencies to hire an
individual receiving an annuity from the Civil Service Retirement and
Disability Fund (i.e., the Civil Service Retirement System (CSRS) or the
Federal Employees' Retirement System (FERS)) without discontinuing such
annuity to fill an acquisition-related position under certain
circumstances. This authority expires December 31, 2011.

In addition to the acquisition-related positions defined in the Office
of Management and Budget (OMB) Policy Letter 05-01, reemployed
annuitants can:

-   Act as mentors to entry and mid-level staff and provide on-the-job
    training and coaching;

-   Serve as additional staff for short-term projects or surges;

-   Provide staffing flexibility to support emergency acquisition needs
    (e.g., natural disasters or other national emergencies);

-   Provide a knowledge pool for best practices that could be leveraged
    across HHS;

-   Serve as a consulting resource to address specific Department
    acquisition issues; and

-   Provide support to program managers as acquisition experts to more
    effectively link contracting and program functions and improve the
    acquisition process.

**837-1-30 REFERENCES**

A.  General Services Administration Modernization Act, Public Law
    109-313

B.  Office of Management and Budget Memorandum, Subject: Plans for
    Hiring Reemployed Annuitants to Fill Acquisition-Related Positions,
    dated September 4, 2007

C.  Office of Management and Budget Policy Letter, 05-01, Subject:
    Developing and Managing the Acquisition Workforce, dated April 15,
    2005

D.  Title 41, U.S. Code § 433 (Section 37 of the Office of Federal
    Procurement Policy Act)

E.  5 U.S.C. §§ 3327 and 3330

F.  5 CFR Part 330

G.  OPM Guide to Processing Personnel Actions

**837-1-40 COVERAGE AND EXCLUSIONS**

A. Coverage. The following acquisition-related positions may be filled
at any grade level in any geographic location:

1.  All positions in the general schedule contracting series (GS-1102);

2.  All Contracting Officers (CO) regardless of general schedule series
    with authority to obligate funds above the micro-purchase threshold;

3.  All positions in the general schedule purchasing series (GS-1105);

4.  Program and project managers who monitor and/or manage one or more
    contract-related programs or projects;

5.  All Contracting Officers' Technical Representatives (COTRs), also
    known as Project Officers and Contracting Officers' Representatives
    (CORs) who monitor and/or manage vendor performance under one or
    more contracts;

6.  Any significant acquisition-related positions identified by the
    Chief Acquisition Officer (CAO) using the guidance provided above.

B. Exclusions.

1.  Employees who separated under authority of the Voluntary Separation
    Incentive Pay (VSIP) Program are prohibited from reemployment within
    5 years of separation unless repayment of the separation incentive
    is made.

2.  Annuitants reemployed by HHS before the effective date of this
    policy and subject to salary offset may continue to serve in their
    positions in accordance with the provisions of their appointment.
    These annuitants will continue to have their salary offset by the
    amount of the annuity received for the period of employment.
    However, annuitants who provide written notice of their intent to
    resign from HHS unless their salary offset is waived in accordance
    with this policy may be converted to a new appointment, if their
    waiver is approved. Such annuitants must be willing to sign a
    statement of understanding confirming their intent to accept
    reappointment only if provided the benefit of the salary offset
    waiver (see sample at Exhibit A, Sample Statement of Understanding).

**837-1-50 RESPONSIBILITIES**

A.  Office of the Assistant Secretary for Administration and Management
    (ASAM), Office of Human Resources (OHR) is responsible for:

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1.  Updating and maintaining this policy in coordination with ASAM,
    Office of Acquisition Management and Policy (OAMP);

2.  Preparing and submitting annual reports regarding use of this
    authority to the Office of Personnel Management (OPM) and Office of
    Federal Procurement Policy (OFPP) by November 1 of each fiscal year
    (beginning November 2008);

3.  Monitoring the use of this authority through accountability reviews
    or reporting to ensure that use of the authority is consistent with
    the requirements of this policy.

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B.  Operating Divisions (OPDIVs) and Staff Divisions (STAFFDIVs) are
    responsible for:

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1.  Providing oversight to ensure that the use of this authority is
    consistent with the requirements of the policy;

2.  Preparing and submitting waiver requests (see Exhibit B) to their
    operating human resources organization;

3.  Ensuring that this policy is applied in a consistent manner when
    determining whether or not a waiver should be requested.

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C.  The Office of Acquisition Management and Policy (OAMP) is
    responsible for:

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1.  Approving or rejecting the selection of GS-15s and above for HHS
    Acquisition staff regardless of GS occupational series;

2.  Maintaining case files of all reemployed annuitants appointed under
    this authority;

3.  Making case files available for review and analysis upon request by
    OHR, OPM or OMB.

D. Operating Human Resource organizations are responsible for:

1.  Ensuring that waiver requests meet all legal requirements prior to
    employee's entry on duty date;

2.  Establishing and maintaining documentation and records in a case
    file containing the justification for the waiver requests,
    statements of understanding for each appointment made using this
    authority, and additional documents specified in the Case File
    Checklist (see Exhibit C);

3.  Submitting completed case files to the OAMP for centralized
    record-keeping by the Department Acquisition Career Manager (ACM);

4.  Ensuring compliance with regulatory and policy requirements prior to
    processing waiver requests;

5.  Ensuring that all personnel actions are documented correctly on the
    Notification of Personnel Action, Standard Form 50;

6.  Providing input to OHR for annual reporting requirements on the use
    of this authority as required in maintaining accountability.

**837-1-60 APPOINTMENTS**

A.  May be made into full-time or part-time positions on a time-limited
    or indefinite basis depending on the individual circumstances and
    needs of the organization;

B.  Will be processed in accordance with the provisions of the type of
    appointment action being taken as specified in the OPM Guide to
    Processing Personnel Actions, including proper notification of
    reemployment to the OPM (see Exhibit D);

C.  Must follow merit promotion procedures or exceptions to merit
    promotion procedures, as applicable;

D.  Must follow the provisions of Bargaining Agreements and Indian
    Preference law, as applicable;

E.  Must follow the provisions of the HHS Career Transition Assistance
    Plan (CTAP), Interagency Career Transition Plan (ICTAP), and
    Reemployment Priority List (RPL);

F.  Are subject to public notice requirements under 5 U.S.C. §§ 3327 and
    3330, and 5 CFR Part 330.

**837-1-70 WAIVER REQUESTS**

A waiver may be requested to reemploy an annuitant without offsetting
their Federal salary by the amount of their retirement annuity. This
authority may be requested based on the following criteria, as
appropriate, and OPDIVs and STAFFDIVs must document each request as
required below:

A.  For waivers based on the unique or unusually high qualifications of
    an individual (41 U.S.C. 433(4)(i)(3)(A)):

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1.  A description of the knowledge, skills, and abilities possessed by
    the candidate that are essential for the work to be performed;

2.  Justification that these knowledge, skills, and abilities could not
    be acquired by another appointee within a reasonable amount of time.

B. For waivers based on exceptional difficulty in recruiting a qualified
employee (41 U.S.C. 433(4)(i)(3)(B)):

1.  A description of the length, breadth, and results of the agency's
    recruiting efforts;

2.  Any other factors (e.g., unusual qualification requirements or
    working conditions) which demonstrate that a legitimate recruiting
    need cannot be met without the requested waiver.

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C.  For waivers based on exceptional difficulty in retaining a qualified
    employee (41 U.S.C. 433(4)(i)(3)(B)):

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1.  A statement that the individual is still on HHS' rolls;

2.  A statement that the individual will be working on a specific
    project, rather than continuing to perform the broader duties of the
    position the individual occupied prior to retirement;

3.  Critical nature of the project:

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a.  The importance of the project to the OPDIV's or STAFFDIV's mission;

b.  Potential costs of project failure or delay;

c.  Any legislative or Presidential deadlines;

d.  Any other factors demonstrating that the project is unusually
    critical.

4\. Candidate's unique qualifications

a.  The knowledge, skills, and abilities possessed by the candidate that
    are essential for successful completion of the project;

b.  Justification that these knowledge, skills, and abilities could not
    be acquired by another appointee within a reasonable amount of time;

5\. Other staffing options, e.g. why the work could not be assigned to
other employees involved with the same project.

D. For waivers based on a temporary emergency hiring need (41 U.S.C.
433(4)(i)(3)(C)):

1.  A description of the emergency;

2.  The date it occurred;

3.  The expected duration of the emergency hiring need;

4.  A description of how the individual is uniquely qualified to meet
    the emergency hiring need.

**837-1-80 DOCUMENTATION, REPORTING AND ACCOUNTABILITY**

A. Documentation

1.  Appointments should be documented in accordance with the particular
    type of appointment taken, e.g. competitive, reinstatement or
    temporary appointment based on reinstatement, as specified in the
    OPM Guide to Processing Personnel Actions. However, in addition to
    the required authority and authority code based on the type of
    appointment, the authority code "ZLM" and authority "Pub. Law
    109-313" shall be used.

2.  Vacancy announcements should contain the following language:
    "Reemployed annuitants may be appointed to this position without
    discontinuing their annuity or offsetting their salary during the
    period of reemployment. However, reemployed annuitants may be
    required to repay their lump sum annual leave if reemployed during
    the projected period covered by their lump sum payment."

3.  Operating HR organizations will use the appropriate annuity
    indicator that reflects the annuitant is not subject to salary
    reduction, e.g. annuitant indicator G or 6.

4.  Notifications of Personnel Action, SF-50s, must contain the
    following remark: "A17 -- As a reemployed annuitant, you serve at
    the will of the appointing officer."

5.  A Statement of Understanding (see Exhibit A) is required for each
    appointment made using this authority.

6.  Notification of the appointment to OPM is required for appropriate
    processing of an annuitant's benefits resulting from reemployment.
    Notification is provided by forwarding to OPM a copy of the
    "Notification of Reemployment of an Annuitant" (see Exhibit D) or
    other appropriate form and a copy of the Standard Form 50,
    "Notification of Personnel Action".

7.  Documentation of the basis and criteria for employment of the
    annuitant.

    B. Reporting

The OHR will coordinate the annual reports on the use of this authority,
and will provide reports to OPM and OFPP by November 1 of each fiscal
year beginning November 2008. At a minimum, these reports should
include:

1.  Number of individuals employed under the authority;

2.  Name, grade level, and geographic location of each employee;

3.  Part-time or full-time status; and

4.  Length and terms of employment and options to renew.

C. Accountability

Managers and supervisors throughout HHS are responsible for the
appropriate use of this authority to support mission requirements.
OPDIVs, STAFFDIVs, and operating human resource organizations are
responsible and accountable for the use and oversight of this authority.
This authority may not be used solely to benefit employees or retirees.

**Exhibit A Statement of Understanding**

1.  I,
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
    (insert employee's name), am not currently a Federal employee as I
    am a Federal retired annuitant.

2.  The position offered is:

    a.  Position Title, Series, Grade and Step:

    b.  Organization:

    c.  Appointing Authority:

    d.  Effective Date:

3.  Criteria used to reemploy the retired annuitant (check one):

    a.  Unique or unusually high qualifications of the individual

    b.  Exceptional difficulty in recruiting a qualified employee

    c.  Exceptional difficulty in retaining a qualified employee

    d.  Temporary emergency hiring need

4.  I will not accept the position described above without a waiver of
    the salary offset.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Employee's Signature) (Date)

(Note: This Statement of Understanding should be placed in the
appropriate case file documenting the appointment.)

**Exhibit B Sample Request for Appointment of a Reemployed Annuitant**

**Without Salary Offset**

TO: Director, Human Resources, (Operating HR Center or Office)

FROM: (Head of Contracting Activity for OPDIV)

SUBJECT: Request for Waiver of Salary Offset

In accordance with HHS Instruction 837-1 and the authority included
under the General Services Administration Modernization Act (P.L.
109-313), I hereby request the reemployment (or retention, as
appropriate) without salary offset, of an individual receiving an
annuity from the Civil Service Retirement and Disability Fund or the
Federal Employees Retirement System on the basis of \[insert basis for
waiver, e.g., the unique or unusually high qualifications of the
individual\].

**[Information about Selectee]{.underline}**

Full name:

Last four digits of SSN:

Civil Service Annuitant (CSA) Number:

Date of retirement:

**[Information about Position to be Filled]{.underline}**

Position Title, Series, Grade:

Duty Location (City, state):

Hiring authority/Duration of appointment (not-to-exceed):

Work schedule (Full-time, Part-time, Intermittent):

**[Please attach:]{.underline}**

A statement documenting the criteria on which this request is based,
including all the information specified in Section 837-1-70, Waiver
Request.

**Exhibit C Case File Checklist**

1.  Statement of Understanding

2.  Request for Appointment Memorandum providing justification for use
    of the waiver authority, as appropriate, based on the specific
    appointment authority

3.  Notification of Personnel Action, SF-50

4.  Resume

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5.  Position Description or Statement of Duties

6.  Notification of Reemployment of an Annuitant to OPM

    **Exhibit D Notification of Reemployment of an Annuitant**

    NOTIFICATION OF REEMPLOYMENT OF AN ANNUITANT

    The operating Human Resources organization must complete this form
    and mail it, along with a copy of the Standard Form 50, Notification
    of Personnel Action, or agency equivalent to:

    Office of Personnel Management

    Retirement Operations Center

    Post Office Box 45

    Boyers, PA 16017

    Retirement Claim Number: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

    1\. Name of Annuitant (Last, First, Middle):
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

    2\. Date of Birth: \_\_\_\_\_\_ - \_\_\_\_\_\_\_ - \_\_\_\_\_\_\_\_

    3\. Social Security Number:
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_-\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_-\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

    4\. Type of Appointment:
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

    5\. Date of Appointment (Month, Day, Year): \_\_\_\_\_\_ -
    \_\_\_\_\_\_\_\_ - \_\_\_\_\_\_\_\_\_\_\_

    6\. What deductions for life insurance, if any, are being withheld
    from the annuity: \_\_\_\_None

    \_\_\_\_\_\_\_\_\_\_Basic \_\_\_\_\_\_\_\_\_\_Option A
    \_\_\_\_\_\_\_\_\_Option B \_\_\_\_\_\_\_\_\_Option C

    7\. Was this appointment granted to provide interim relief pending
    further judicial or administrative review of an agency adverse
    action, under the provisions of 5 CFR § 772.102?

    \[ \] YES \[ \] NO

    Complete items 8 through 10 below only if subject is a disability
    annuitant.

    8\. Position Description:

    9\. Pay System/Grade:

    10\. List Attached Medical Documentation:

    11\. Agency Certification:

    I certify that the information provided above is correct.

    (Printed Name) (Signature)

    (Position Title/Grade) (Date)

    (Agency Address)

    (Telephone Number)