REEMPLOYMENT OF ANNUITANTS
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP82-00357R000700090017-2
Release Decision:
RIFPUB
Original Classification:
K
Document Page Count:
3
Document Creation Date:
December 12, 2016
Document Release Date:
February 14, 2002
Sequence Number:
17
Case Number:
Content Type:
REGULATION
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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
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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
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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-
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