REEMPLOYMENT OF ANNUITANTS

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Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP82-00357R000700090017-2
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RIFPUB
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K
Document Page Count: 
3
Document Creation Date: 
December 12, 2016
Document Release Date: 
February 14, 2002
Sequence Number: 
17
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Content Type: 
REGULATION
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PDF icon CIA-RDP82-00357R000700090017-2.pdf431.01 KB
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Approved Fqr Release 2002/04/01 : CIA-RDP82-0035~R000700090017-2 191. May an annuitant be employe outside the Federal Govern- ment? 192. Would employment outside the Federal Government have any effect on annuity payments? As a general rule, outside employment will have no effect on the annuity pay- ments or the annuitant's right to receive them, However, it may affect the rights of certain disability annuitants. 193. How could outside employment affect a disability annuitant? For a disability annuitant who is under age 60, work in an outside position may indicate recovery from his disability or, if his income from wages or self-em- ployment is sufficient, restoration of earning capacity. Either of these would affect his right to annuity as explained in questions 124 to 130. 194. May an annuitant be reem- ployed in the Federal Govern- ment? Yes. He may be reemployed in any position for which he is qualified. 195. Should an annuitant notify the Civil Service Commission if he is reemployed in the Federal Government? He should tell the agency in which he is reemployed that he is an annuitant. The agency must, in appropriate cases, notify the Commission when the an- .nuitant is reemployed and when he is separated. 196. What effect will reemployment in the Federal Government have on annuity payments? That depends on several things: (a) If the annuitant's retirement 'was based on an involuntary separation (except for age retirement) which REEMPLOYMENT OF ANNUITANTS y au o his own, his annuity will be either dis- continued or withheld from his p ay-- (1) If the reemployment is under the retirement system, his an- nuity will be discontinued from the date he is reem- ployed and his future retire- ment rights will depend on the law in effect at the time he is separated from the re- employment. (2) If his reemployment is not under the retirement system, his annuity payments will ron tinue without interruption but his pay during reemployment will be reduced by the amount of annuity he receives. (b) If the annuitant was retired for dis- ability and is found, before reach- ing age 60, to be recovered or re- stored to earning capacity, his an- nuity will be discontinued from the date he is reemployed. (1) If his reemployment is under the retirement system, his fu-. ture retirement rights will de- pend on the law in effect at the time he is separated from the reemployment. (2) If his . reemployment is not under the retirement system and the reemployment ceases within the 1-year termination period applicable upon recov- ery or restoration (see ques- tions 124 and 125), annuity will be resumed the day after reemployment ceases but only for the balance of the 1-year period. (c) If (1) the annuitant's retirement was based on a voluntary separa- tion or on an involuntary separa- tion for cause, (2) the annuitant was. retired for age, (3) he was a 26 Approved Fbr Release 2002/04/01 : CIA-RDP82-00357R000700090017- YOUR RETIREMENT SYSTEM disability annuitant reemployed after reaching age 60, or (4) he was a disability annuitant not found recovered or restored to earning capacity and temporarily reemployed before reaching age 60, his annuity will continue without interruption but his pay during re-. employment will be reduced by the amount of annuity he receives. 197. If an annuitant continues to re- ceive monthly annuity pay- ments during reemployment, are these payments charged against the deductions and in- terest to his credit in the retire- ment fund? Yes, with one exception; if he completes at least the 1 year of continuous full- time employment necessary to qualify for supplemental annuity, the amount to his credit in the fund is not reduced by total annuity paid during reemployment. 198. Under what conditions would a reemployed annuitant be eligi- ble for a supplemental annuity? When an annuitant as described in ques- tion 196(c) is separated from reemploy- ment, he would be eligible for a supple- mental annuity if his final period of reemployment consisted of at least 1 year of continuous full-time service. (Reemployment service under another retirement system for Federal or District of Columbia Government employees and service in a few particular positions- the President and certain U.S. judges- are not qualifying for this purpose.) 199. How is the supplemental an- nuity computed? By applying part (b) or part (c), or both, of the general formula, depending on the annuitant's total length of serv- ice, to the period of his full-time reem- ployment (see question 172). The fol- lowing example illustrates which parts of the general formula are to be used. The example assumes that 3 years was the period of full-time reemployment. If the annuitant's original retirement was based on 6 years of service, only part (b) of the formula would be used because his total service was less than 10 years. If this original retirement was based on 10 or more years of service, only part (c) of the formula would be used because this part applies to all service over 10 years. If his original retirement was based on 8 years of service both parts (b) and (c) would be used; part (b) would be applied to 2 years of the reemployment pe- riod because it was between 5 and 10 years of total service, and part (c) would be ap- plied to the remaining year of reemployment service because, when considered as a part of his total service, it was over 10 years. 200. What average pay is used in computing the supplemental annuity under the general formula? The full rates of basic pay in effect during all periods of full-time reemploy- ment, with each rate weighted by the time it was in effect, are used to figure the average pay. The "high-3" average pay is not used. 201. Are the full rates of basic pay in effect during the reemploy- ment used to figure the average pay? Yes, even though the reemployed annu- itant was not paid at the full rates be- cause his basic pay during the reemploy- ment was reduced by the amount of his annuity. 202. Is all reemployed service, in- cluding the unused sick- leave, used in computing the supple- mental annuity? If the annuitant completes the required 1 year of continuous full-time service, all prior periods of full-time reemploy- ment, including periods shorter than I year and the time represented by the unused sick leave to the annuitant's credit, are added together and the total years and months are used in computing the supplemental annuity. 203. Must the supplemental annuity as computed under the general .formula be reduced for any reason? It must be reduced by 10 percent of the amount due as deposit to cover the re employment service, during which no retirement deductions are made from unless tl deduction;, '' may be madt his been sep: ment. Also, age 55 the s be reduced 135 and 137. 204. May a be user annuir? Yes- The sul employed am meat terming is used to pp the spouse en' unless the ann to provide this spouse. The such a case is r the spouse wil. supplemental tion of this 10 206. What ki there? There are two I (a) A survivo payable in (b) A lump s only once. -207. To whor payable? Under certain c nuity may be I spouse, widow of a deceased e nuitant. It may son having an who was namec of retirement. 208. What coi the spous tant to i nuity bet (a) The emplo must have ApprovegF.or Release 2002/04/01 : CIA-RDP82-f57R000700090017-2 DEATH BENEFITS 27 pay, unless the annuitant deposits these deductions, with interest. This deposit may be made only after the annuitant has been separated from the reemploy- merit. Also, if the annuitant is under age 55 the supplemental annuity must be reduced as explained in questions 135 and 137. 204. May a supplemental annuity be used to increase the survivor annuity? Yes. The supplemental annuity of a re- employed annuitant whose reemploy- ment terminates after January 8, 1971, is used to provide additional annuity to the spouse entitled to a survivor annuity, unless the annuitant elects in writing not to provide this additional annuity to his spouse. The supplemental annuity in such a case is reduced by 10 percent, and the spouse will receive 55 percent of the supplemental annuity before applica- tion of this 10 percent reduction. 205. Can an annuitant have his an- nuity rights completely redeter- mined upon separation from reemployment? If an annuitant as described in question 196(c) completes at least 5 years of continuous full-time service and quali- fies for supplemental annuity, he may elect to have his annuity rights redeter- mined under the law in effect at the time he is separated from reemployment. Deposit to cover the reemployment serv- ice is mandatory for annuity redetermi- nation. Also, the time represented' by his unused sick leave is included in the recomputation. (Note that annuitants described in questions 196 (a) (1) and 196 (b) (1) cease being anuitants upon reemployment. The regular 7-per- cent retirement deductions are taken from their salaries and their future re- tirement rights depend entirely on the law in effect at the time of future sepa- ration.) X. DEATH BENEFITS 206. What kind of death benefits are there? There are two kinds: (a) A survivor annuity benefit which is payable in monthly installments. (b) A lump sum benefit which is paid only once. 207. To whom is a survivor annuity payable? Under certain conditions, a survivor an- nuity may be payable to the surviving spouse, widow or widower, and children of a deceased employee or deceased an- nuitant. It may also be payable to a per- son having an insurable interest and who was named by an employee at time of retirement. 208. What conditions must exist for the spouse of a deceased annui- tant to receive a survivor an- nuity benefit? (a) The employee at time of retirement must have accepted a reduced an- nuity with survivor benefit to his spouse and the spouse to receive this survivor annuity must be mar- ried to the retired employee at time of his death. (b) If the spouse at time of retirement dies before the retired employee or the marirage is otherwise dissolved, and the retired employee remarries, the spouse acquired after retirement is eligible to receive the same survivor benefit as the spouse at time of retirement would have been eligible for, provided the spouse acquired after retirement is married to the retired employee for at least 2 years before the retiree's death or, if married less than 2 years, is the parent of a child born of the marriage. (c) If the employee is unmarried at time of retirement and later mar- ries, he may, within one year after his marriage, elect a reduced an- Approved For Release 2002/04/01 : CIA-RDP82-00357R00070009i