Processing Phased Retirements

February 10, 2014
More information

• Phased retirement information

http://www.opm.gov/retirementservices/phased-retirement/
Agenda

• What is Phased Retirement

• Eligibility

• How it works

• Processing Phased Retirements
Who is Eligible to Participate in 

Phased Retirement?

• Must have been full-time employee for

at least 3 years prior to entry in Phased

Retirement

• Must be eligible for immediate

retirement under specific provisions:

– CSRS: 30 or more yrs of svc/at least age 55;

or 20 or more yrs of svc/at least age 60

– FERS: 30 or more yrs of svc/at least MRA, or

20 or more yrs of svc/at least age 60
How Does Phased Retirement 

Work?

• Currently allows working % of 50 &retirement % of 50

• Is an agreement between employee and agency

• When elected, the employee:

– Is partially retired and receives about half of their

annuity

– Is employed and works 50% part-time and receives

half of their pay

– 20% of their work time must be spent in mentoring

activities
Employee’s Pay During 

Phased Retirement Status

• Employee receives half of their gross pay

• Gross pay continues to be subject to

employee withholdings for FEHB, FEGLI,

FEDVIP, FLTCIP, TSP, Federal and State tax,

Social Security and Medicare tax, and

CSRS or FERS deductions, as appropriate

– FEHB and FEGLI premiums are the same as a

full-time employee
Employee’s Annuity During Phased 

Retirement Status

• Initial annuity computed under CSRS and FERS

as if fully retired, then multiplied by Ret %

– Special computations apply

– No sick leave credit

– No FERS Annuity Supplement

• Deposits for military must be paid prior to

Phased Retirement

• Re/Deposits for civilian service must be paid

prior to finalizing phased retirement case

• Survivor elections are not made until full

retirement
Employee’s Annuity at Full 

Retirement 

• Survivor elections are made when applying 

for full retirement

• Cannot elect to pay deposit/redeposit

• Entitled to Composite Retirement Annuity

– Intitial Phased retirement annuity, increased by 

applicable COLAs during Phased Retirement; plus,

– Final phased portion of the full retirement 

annuity 

• Annuity computed as if employee had worked fulltime, including sick leave, then multiplied by 

Working % 
 Effective Date of Election

• Commencing date of annuity and

effective date of phased retirement are

the same date

• First day of the pay period following an

authorized approval or

• First day of a later pay period as

specified on the employee’s election as

long as agency concurs
Entering into PR NOAC 615

• PR work schedule codes R

• Part-Time hours per week reflects

working percentage (50%)

• Required Remarks

– M11, M12, M13, M14, M15

• Effective date will posted on IRR as the

last action “Employee in Phased

Retirement”
Remarks 

• M 11- A Change to the work schedule

or the part-time hours worked during

phased employment/phased

retirement status will result in the

termination of phased

employment/phased retirement status

and phased retirement annuity
Remarks 

• M12- Employee may elect to enter full

retirement status at any time by

submitting SF 2801 or SF 3107

• M13- If Employee’s Phased Retirement

terminates for any reason the

individual may not re-elect Phased

Retirement
Remarks 

• M 14 Employee is required to spend 

20% of their time mentoring

• M15 FEHB/FEGLI benefits are not 

affected by phased employment/ 

phased retirement
NOAC 615 OPM Submissions

• NOAC 615 prompts close out IRR 

effective the retirement date

• Associate Phased Retirement Election 

Form SF 3116, and appropriate 

immediate application and IRR and 

send on register to OPM

• New DEG value for “Annuity Case 

Type”: 0 (for initial phased retirement) 
NOAC 615 Payroll 

• Work schedule R code prompts 

withholding of FEHB and FEGLI 

premiums as if phased retiree working 

full time
NOAC 615 and the IRR

• Prompts close out on effective date

• The NOA description and effective date 

should be on this IRR but no 

contributions for this date

• All service history prior to the effective 

date of phased retirement should be 

on the closeout IRR
NOAC 615 and the IRR

• All agency CY contributions and 

cumulative totals to (but not including) 

the effective date oh phased 

retirement

• All LWOP including OWCP LWOP, for 

any period represented by the IRR

• All intermittent hours/days worked 

should be posted for any period 

represented by IRR
NOAC 615 and the IRR

• All part time hours worked and tour of 

duty information should posted for any 

period represented by IRR

• Notation on whether military deposit 

was completed at the agency

• Associate close out IRR with retirement 

application and send on register to 

OPM 
NOAC 615 and the IRR

• What should NOT be on the close out 

IRR

– Federal Employees Group Life Insurance 

(FEGLI) 

– Federal Employees Health Benefits (FEHB)

– Unused Sick Leave (USL)

– Last Day of Pay
NOAC 615 and the new IRR

• Prompts beginning date on a new IRR 

that the agency will maintain until the 

phased retiree fully retires or otherwise 

separates or transfers

• The same NOAC 615 description and 

the same effective date as was posted 

on close out IRR should be posted as 

the first service action.

• Deductions will begin on this date.
Data Exchange Gateway 

(DEG)

• DEG value for “Annuity Case Type 0 

(zero) for “initial phased retirement”.
NOAC 307 and 308

• NOAC 307 Full Retirement Status

• NOAC 308 Full Retirement Status ILIS
NOAC 307 or 308 Full 

Retirement 

• Change annuitant indicator to phased 

retirement code listed in Guide to 

Personnel Data Filed Edits or BAL 14-

307

• Provide remarks on SF 50

– M18 Entitled to composite annuity

– M19 Certify full time salary for FEGLI
NOAC 307 and 308 and IRR

• Prompts the close out of IRR effective 

the retirement date

• Full Retirement Status Voluntary

• Associate appropriate immediate 

retirement application and IRR and 

send on a register to OPM

• New DEG value for “Annuity Case Type” 

9 (for final phased retirement)
NOAC 307 308 and IRR 

• Close out this IRR per regular process 

for retirement

• Post mandatory data LDOP, USL, FEHB, 

FEGLI, and military deposit status

• The only type of military deposit for 

this separation is one that interrupts 

this period of service
NOAC 307 

• Submit retirement application 

• Use appropriate pamphlet instructions 

to fill out application SF 2526 or SF 

3118

• FEHB and FEGLI documents

• Marriage certificate

• Spousal Consent form
NOAC 308 ILIA

• Submit retirement application using 

appropriate pamphlet

• FEHB and FEGLI documents

• Marriage certificate

• Spousal Consent form

• OPM Form 1510

• Notice to phased retiree of involuntary 

separation
Opt Out of Phased Retirement 

and Return to Employment

• NOAC 616 Opt Out Phased 

Employment/Phased Retirement

• Change to appropriate annuitant 

indicator

• Required remarks

– M16 The time spent in PR will be credited 

as part-time service for annuity 

– M17 Employee’s in PR annuity terminated
NOAC 616 Opt Out 

• NOAC noted on IRR but IRR is 

maintained until employee separates, 

transfers, retires 

• Change work schedule to F

• Use appropriate annuitant indicator

• Fax completed 3116 Part 2a to 

phasedret@opm.gov
Questions