.· REF ID:A33550, 

25 May 1955 

MEMORANIJJM FOR TBE RECORD 

SUBJECT: Reemployment of a Retired Civilian ~loyee 

l.. Tb.e question we.s raised c.s to wheth~r or not cm employee of 

this Agency who is retired after reaching aae 6o can be reemployed. 

JU.so whether or not said employee could be hired on a non-personal 

service contract a.t'ter his retirement at age 60. 

2. With regard to the first question it was determined that when 

an anmti ta.nt has rea~hed age 6o and is reemployed by the Federal Government, no deduction for the retirement .fund will be withheld from his 

salary. The Agency will however, dedu.ct. the total a.nnui ty payable to 

such person from the total salary for tne position. When the annuitant 

is under age 6o1 and the employment is within the pur-v1ew of the Retirement Acre, the annuity is terminated a.nd the employee's 1\tture retirement 

riehts will be determined in accordance with the retirement law in errect 

at tb.e time of his subsequent separation. If' the annuitant is reemployed 

1n a position which is not covered by the Retirement Act (e.g., a posi-

·tion or consul ta.nt under Social Security coverage), t~ 8Illl'J.1 ty is suspended during the reemployment &.'ld reswned upon separation. (For 

provisions of' computation of salary of retired employee upon his reemployment see CPR Chapter Pl, Section 2 1 paragraph 2-4.) 

3. In reply to the second question, Miss D1Vetta, Claims Section, 

Retirement Division, Civil Service Commission (Telephone Code 141, ext. 

5013), advised the.t employment under a non-personal services contract 

is not creditable toward ret.irem.ent and, in view of this, a. retired 

annuitant could receivi! botl1 his full retirement and paymen·t i"or the 

completed Job under the non-personal services contra.ct. CFM Ch.apter 

f.\2 1 paragra.phs 5.6a. and 5.6b, define what is meant by services obtained 

on a "personal services contract" ('.md.er which the provisions of para.-

graph 2 above would be ap11lica.ble) and services obtained "by contra.ct." 

This latter group provi4es that peyinent· for such services usually is 

made for a finished product ( e • g. , a. book) on a lump-sum or fee be.sis • 

4. Miss DiVetta wa.s also questioned regarding employees who are 

retired for disability. Sne advised that where an employee is under 

age 60 a.n.d retiree for disability, reemployment by the Federal Government will in e:f'.f'eat verify that he is able to work and his disa.bili ty 

retirement will be sto9ped. If' the same employee is eDQ?loyed in private 

industry (doing the same or similar type of work ror which he was retired) there is a good chance th.at his disability retirement will stop. 

Ea.ch claim is settled on an individual basis. 

MARGARET L. MAYLON 

Personnel Technician 

Regulations Section, OPNS 

@'pproved for Release by NSA on 05-15-2014 pursuant to E.O. 1352e 
,. • 

AUS'i'i'ER: Tho rati1"ctuent. cl:iecl: is paid on t.he N.1•ot c~ay follow:lnt: 

the 1.onU: in t~rki.ch t.ho ei:·plo,"ee este.bliahed elir:ibility. 

It the ra::plo~e rl.-1:.ired OlL 31 JuJ.r", the F'J:~;"l'Oll 8ectio11 or the Agency 

~rould COLri.plete his ~;rroll state:;.:ant ~.nd tor~f:·.rd it 1~ci;cth~~~· '.:it!~ the 

er.i:·lo:·ae•a r·.r,:-r:llc·:.tio11 f'ol" rcti1·er.\1mt, t.o 1:.l.o B.etirw·:;:nt flideio11 ot t.he 

Civil Set"\'i.ce Conrd.ssion. 't'Pe Comr·::i:-;oion no:m:e.ll:,·· •::ouJ:~. proc.;;a;:.: the 

e.pr.-licutio11 •:d.t.t.:1.Jl tt-10 ;·:eeks. 'l1he checl: ~rould then be 111ad.e 011t on the 

f1J.•$t of Seftt;1i1.ber i'or tho r.10~:.th 0£ .Au£u::;t. .ifttir +.h.:.t r.. check h"Ouli..i 

be Lt:i.ilE!"l l.11;; ·rfa•:Jt of e.~cL J:lorffiit £01· the f.'?'OViOl\S l:•OHt h. 

QUEIJ'CI: (;U: ~n.·!,.t ei'tect c:oes tlk? j~.l).ct the. t ::! pcn•sor1 lit~::: not cor.1pl,1t.1Jc5. 

15 yel:.·.1"s service have on i~il:! ,.nsura.nce (C-roup Li.i'a r1~£.l.W,.8i1ce). 

tu;t1·.iFFa If the em.plo;:-o•:t 2•E":tir·a~ o!l e. 5 ::t1=.1" t..ieconU.nued servico 

.~m.dty nm! UC.'l' on c-. dioa.bilit:.r i·.;:itirEi1Penl:., li.e 1·:ould not hA eligible 

£or the free Govcrru-;ent, J,,if'oe Iiii:Ju1nuce. Ho-.-!ev~r ii' tlit? el'!plo:-ee h:::.s 

c0111pleted 15 :rears ot t1erviee ~.t t~e;e 62, his insur.~nco t·ro1.lld not. r.·e ettr~cted reg.=.rrllesf.l or the 2•e£1.f'.on £or reti.J.•e.wmt.