Phased Retirement: In Brief (CRS Report for Congress)
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| Release Date |
Oct. 8, 2014 |
| Report Number |
R43755 |
| Report Type |
Report |
| Authors |
Katelin P. Isaacs, Analyst in Income Security |
| Source Agency |
Congressional Research Service |
Summary:
On July 6, 2012, P.L. 112-141, the Moving Ahead for Progress in the 21st Century Act (MAP-21), was signed into law. Section 100121 of P.L. 112-141 provides authority for a new phased retirement option for certain federal employees.
Phased retirement allows eligible, full-time employees covered by the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS) to move to a part-time work schedule while simultaneously receiving partial retirement benefits. Employees participating in phased retirement, with the exception of U.S. Postal Service employees, must spend at least 20% of their work hours engaged in mentoring activities. Phased retirement is not an entitlement; eligible federal employees must apply and receive approval from their employing agencies to enter phased retirement.
Under the implementing regulations adopted by the Office of Personnel Management (OPM) on August 8, 2014, phased retirement will initially be structured as a 50% work schedule, with the participating employee receiving 50% of his or her federal salary and about 50% of his or her federal pension benefit (also referred to as an annuity). Employing federal agencies may accept applications from employees for this new phased retirement option beginning November 6, 2014.
This report provides
background on dual compensation (i.e., concurrent receipt of both a federal salary and a federal pension);
an overview of the phased retirement authority under P.L. 112-141;
a summary of eligibility requirements for employee participation in phased retirement; and
an explanation of the consequences of phased retirement status for employee benefits.
