March 14, 2012 at 5:05 pm #156237
The Senate is backing a proposal that would allow Feds to “phase into retirement” by switching to part-time work while collecting a partial annuity, under language approved by the Senate Thursday as part of a Highway Transportation bill.
The plan envisions phased retirees typically working half-time and drawing half the salary of their position while receiving half the annuity they accumulated during their career prior to retirement. Hours of work could range from 20 to 80 percent (i.e., 8 to 32 hours) of a regular work week and a fifth of that time (or 4 to 6 1/2 hours) would be spent mentoring younger employees; exceptions to that policy also would be allowed.
Phased retirees would be treated as active employees for most purposes, and when they decided to fully retire, they would receive their full annuities, with a prorated increase for the time they worked under that arrangement.
If adopted, would you take advantage of this plan?
March 14, 2012 at 5:32 pm #156243
I reach my minimum retirement age next year. I’m thinking that phasing into retirement would be a great idea. I could dip my toes back into the private or non-profit sectors, while making sure that my programs do not flounder. I could even serve as a consultant to another agency, while maintaining my status with my current organization. For ambitious baby-boomers like me, who are not ready to “retire” completely and who are ready to try a third career, this arrangement would be ideal.
By the way, Andy just posted a very similar question. I’m thinking that there aren’t too many baby boomers on GovLoop, so I’m not sure how many Feds will respond.
March 14, 2012 at 6:38 pm #156241
Great minds think alike, as they say…added similar conversation here:
March 15, 2012 at 4:38 pm #156239
Feds One Step Closer to an Option for Easing into Retirement @GovExec
By Amanda Palleschi
The Senate on Wednesday passed an overhaul of highway and transportation programs that includes language allowing retirement-eligible federal employees to work part time to help pay for other government programs.
The chamber passed the $109 billion highway bill by a vote of 74-22, putting the ball in the House’s court. Among the more than 20 amendments considered during this week’s marathon voting in the Senate was a provision penned by Sen. Max Baucus, D-Mont., that would use the retirement flex plan to offset costs of economic development aid in rural counties.
Under the Baucus amendment, approved 82-16 last week, part-time employees would receive partial annuities and could earn additional retirement benefits proportional to the amount of time they work. In addition, older employees would be required to mentor younger new hires and help preserve agency knowledge.
To read the entire article, please click here.
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