What Happens to Your Benefits if You Return to Federal Service? | Harris (2024)

FAQs

What happens to my retirement benefit if I go back to work for the government? ›

What happens to my retirement benefit if I go back to work for the government? Generally, if you're receiving a regular retirement it will continue and your salary will be equivalently reduced.

Health. If you leave Federal Service, you may be eligible for Temporary Continuation of Coverage (TCC) for up to 18 months under the FEHB. TCC is a feature of the (FEHB) Program that allows certain people to temporarily continue their FEHB coverage after regular coverage ends.

Reinstatement allows you to reenter the Federal competitive service workforce without competing with the public. Reinstatement eligibility enables you to apply for Federal jobs open only to status candidates.

Can You Lose Your Federal Retirement Benefits If You Are Fired? Generally speaking, your retirement benefits should be safe. For most federal employees, retirement benefits cannot be ended due to basic disciplinary proceedings or if you are fired. This is assuming your retirement is already vested.

FERS is a retirement plan that provides benefits from three different sources: a Basic Benefit Plan, Social Security and the Thrift Savings Plan (TSP). Two of the three parts of FERS (Social Security and the TSP) can go with you to your next job if you leave the Federal Government before retirement.

Employees need to have worked at least five years in government to receive retirement benefits from the Basic Benefit Plan. The Thrift Savings Plan, also called the TSP, offers benefits similar to a traditional 401(k) plan. Agencies contribute 1% of each employee's salary, whether or not an employee contributes.

Can I keep my health benefits after I retire? Yes, you can keep your existing health benefits coverage if you meet all of the following conditions: You're enrolled in health care insurance under a federal plan when you retire.

You need to be enrolled in FEHB for five years before you retire, or for the entire time for which you were eligible to be enrolled, and retire on an immediate annuity to be eligible to continue coverage into retirement.

An employee will receive a lump-sum payment for accumulated and accrued annual leave when he or she separates from Federal service or enters on active duty in the Armed Forces and elects to receive a lump-sum payment.

In addition, a break in service occurs, effective the last day on pay status, whether or not a separation form is submitted, when an employee is off pay status for 120 consecutive calendar days without an approved leave without pay, furlough, or temporary layoff.

How does a break in service affect federal retirement? ›

If your break in service was more than 365 days, you will be required to be covered by Social Security upon your return. You will also have to choose between CSRS Offset and FERS. If your break was more than 3 days but less than 365, you will have the option to elect FERS coverage.

For most Federal Employees the FERS annuity formula equals:

Essentially, you get 1% or 1.1% of your highest salary as a federal employee for every year of work, guaranteed for the rest of your life.

A number of situations could put your pension at risk, including underfunding, mismanagement, bankruptcy, and legal exemptions.

Collecting a pension while still working

After retirement, if you're working for a new employer while collecting a pension from a previous employer, then your pension will not be affected by your earnings.

MRA (Minimum Retirement Age) + 10 Retirement. To qualify for an MRA + 10 retirement you must meet the following eligibility requirements: You must be separated from Federal service with at least 10 years, but less than 30 years of creditable service, or.

3. At full retirement age, you're still eligible for full benefits. If you're at full retirement age but choose to return to work, your benefits won't be affected. The SSA adds that the benefit amount will be recalculated to “leave out the months when [they] reduced or withheld benefits due to your excess earnings.”

Starting with the month you reach your FRA, there is no limit on how much you can earn and still receive benefits. (As a reminder, you receive your largest monthly benefit by delaying retirement until age 70 but not beyond, so it never makes sense to wait past that age.)

Reaching State Pension age doesn't mean you have to give up work. You can continue working and still receive your State Pension. Find out about your options and the advantages of working longer.

Minimum retirement age (55 to 57, based on your year of birth) with 30 or more years of creditable service. Age 60 with 20 years or more of creditable service. Age 62 with five or more years of creditable service.