Phased ReJrement	
  

An Employee	
  PerspecJve	
  
What	
  is Phased ReJrement?

Phased reJrement	
  allows eligible

employees to elect	
  to transiJon into

reJrement	
  by conJnuing to work on a

part-­‐Jme basis and receiving a porJon of

their annuity for the Jme they are not	
  

working.
How Does Phased ReJrement

Work?

•	 Phased ReJrement	
  is an agreement	
  

between employee and agency

•	 When phased reJrement	
  is elected, the

employee:	
  

– Is parJally reJred and receives about	
  half of

their annuity

– Is employed and works 50% part-­‐Jme and

receives half of their pay

– 20% of their work Jme must	
  be spent	
  in

mentoring acJviJes
Who is Eligible to ParJcipate in

Phased ReJrement?

•	 Must	
  have been full-­‐Jme employee for

at least	
  3 years prior to entry in Phased

ReJrement	
  

•	 Must	
  be eligible for immediate

reJrement	
  under specific provisions:

– CSRS: Age 55 with 30 years of service, or

age 60 with 20 years

– FERS: MRA with 30 years of service, or age

60 with 20 years of service
What	
  Employees Are Excluded From

Phased ReJrement?

•	 Law Enforcement	
  Officers, Fire Fighters,

Air Traffic Controllers, Nuclear Materials

Couriers, Capitol Police and Supreme

Court	
  Police and some Customs and

Border ProtecJon (CBP) Officers subject	
  to

mandatory reJrement	
  provisions

– CBP Officers employed before 7/6/08 and

who are exempt	
  from mandatory separaJon

provisions are not excluded
What	
  Employees Are

Excluded From Phased

ReJrement?

•	 Special work schedules that	
  do not	
  

allow a recurring part-­‐Jme schedule:

– Fire Fighters covered by 5 USC 5545b

–Nurses under	
  38 USC 7456 or	
  7456A
Deposits and Redeposits

Employees who wish to parJcipate in

phased reJrement	
  must	
  pay all:

• Civilian Deposits

• Military Deposits

• Redeposits

Before they begin phased reJrement	
  
Example of the income of a

CSRS Phased ReJree

CSRS Employee

•	 Length of service: 35 years 9 months

Current	
  salary:

$68,275 x 50%

$34,137 annually $2,844.75 monthly

Current	
  Annuity:

$45,296.30	
  x 50%

$22,648 annually $1,887.00 monthly
Example of the income of a

CSRS Phased ReJree

Total Employee	
  Income	
  in Phased

Re8rement:

• Annual

$34,137 + $22,648 = $56,785

• Monthly

$2,844.75 + $1,887 = $4,731.75
Example of the Income of a

FERS Phased ReJree

FERS Employee

•	 Length of service: 35 years 9 months

Current	
  salary:

$68,275 x 50%

$34,137 annually $2,844.75 monthly

Current	
  Annuity:

$23,868 x 50%

$11,934 annually $994.50 monthly
Example of the Income of a

FERS Phased ReJree

Total Employee	
  Income	
  in Phased

Re8rement:

• Annual

$34,137 + $11, 934 = $46,071

• Monthly

$2,844.75 + $994.50 = $3839.25
Phased vs. Regular

ReJrement	
  Final Annuity

CSRS

For an employee who worked 2 years

under phased	
  re8rement:	
  

•	 Full ReJrement	
  (Composite) Gross

Monthly Annuity Payable = $3,811

For an employee who worked full 8me

for	
  2 addi8on years, (not par8cipa8ng	
  in

phased	
  re8rement)	
  

•	 Monthly annuity Payable = $4,040
Phased vs. Regular

ReJrement	
  Final Annuity FERS

For an employee who worked 2 years, 3

months, under	
  phased re8rement:

•	 Full ReJrement	
  (Composite) Gross

Monthly Annuity Payable = $2,003

For an employee who worked full 8me

for	
  an addi8on 2 years, 3 months, (not

par8cipa8ng in phased	
  re8rement)	
  

• Monthly annuity Payable = $2,116
How are Federal Employees Health

Benefits (FEHB) and Federal

Employees Group Life Insurance

(FEGLI) affected?

•	 For FEHB and FEGLI	
  purposes the

employee is considered to sJll be

working	
  full Jme.
What	
  is Mentoring?

•	 A process that	
  focuses on providing

guidance, direcJon, and career advice.

Mentoring is an opportunity for

collaboraJon, goal achievement, and

problem solving.	
  

•	 Mentoring is an essenJal element	
  of phased

reJrement	
  

•	 20% of Jme each pay period must	
  be spent	
  

in mentoring acJviJes
What	
  Type of AcJviJes Meet	
  

the Mentoring Requirement

• Knowledge Transfer

• Knowledge Management	
  

• Succession Planning

• Career Development	
  
Is There A Limit	
  To How Long I

Can Be In Phased ReJrement?

•	 An agency is not	
  required to place a

limit	
  on how long an employee may

parJcipate in phased reJrement.

•	 An agency and the employee may

agree to a Jme limit	
  using a wriLen

Jme limit	
  agreement.
What	
  Is A Time Limit	
  

Agreement?

•	 Establishes a Jme period for phased

reJrement.

•	 Both the agency and the employee

must	
  agree to use the Jme limit	
  

agreement.
Can I File an Appeal or

Grievance?

•	 Denial of applicaJon for phased

reJrement	
  

•	 Disapproval of request	
  to return to

regular employment	
  

–Not	
  appealable adverse acJons

under 5 U.S.C. chapter 75

– May be grievable
Do I Have the Same

Procedural Rights as Before

Entering Phased ReJrement?

•	 For a non-­‐bargaining unit	
  employee,

procedural rights remain the same as

before entering phased reJrement	
  

•	 For a bargaining unit	
  employee,

procedural rights could change if

bargaining unit	
  status changes
What	
  is a Phased ReJree’s

Work	
  Schedule?

•	 Must	
  have a working percentage equal

to 50 percent	
  of full-­‐Jme (i.e., 40 hours

per biweekly pay period)

•	 May be assigned hours of work in

excess of established schedule only in

rare and excepJonal circumstances

• May be permiLed to parJcipate in an

alternaJve work schedule program
How Does Phased

ReJrement	
  Impact	
  Pay?

•	 Pay rate determined under the rules of

the pay system covering the employee

•	 If a phased reJree performs overJme

work under excepJonal

circumstances, he or she is enJtled to

overJme pay under the normally

applicable rules

•	 Days of part-­‐Jme service are

creditable towards within-­‐grade

increase waiJng periods
How Does Phased

ReJrement	
  Impact	
  Leave?

• No lump-­‐sum payment	
  for annual leave

upon transiJon to phased reJrement	
  

•	 Annual and sick leave balances are

maintained

•	 Leave accrual is prorated

– 4 hours of annual leave per pay period

– 2 hours of sick leave per pay period

• Annual leave ceiling remains the same
How Does Phased ReJrement	
  

End?

• Regular reJrement	
  

• Return to regular employment	
  

with the agency’s approval
What	
  If Want	
  To ParJcipate?

1. Talk to your manager

2. Get	
  an annuity esJmate

3. Complete the phased reJrement	
  

elecJon form for approval by your

agency