In the past, it’s been all or nothing. You can either retire
completely from your full-time job or not at all. The only middle ground
compromise would have been to retire and find a job working part-time somewhere
else. With a recent transportation bill signed into law by President Obama on
Friday, July 6, 2012, however, federal employees might have the opportunity
to mix the two options.
Situated deep within this 593 page Conference
Report (legislation negotiated between the House and Senate), Section 100121
on phased retirement was added, changing the landscape of options for potential
retirees. Instead of an all or nothing proposal, retirement could consist of
a sort of working retirement. An individual who would like to spend more time
enjoying life beyond working years, but still spend time with co-workers in a
job they enjoy, might have the opportunity to do both.
The bill was proposed as a way to prevent the knowledge and
skills of older workers from abruptly leaving the workforce and moving into
retirement. Skilled individuals will now have the opportunity to mentor the
younger generation of workers and prepare them for the road ahead while also
enjoying their partial retirement.
Partial retirement can consist of working one to four days
during the workweek. The retirement pension received during phased retirement
will be based on a pro-rated amount of the eligible annuity. An individual, for
example, working 40 percent of the time would receive 60 percent of their
retirement benefits. The phased retirement option can only be selected once in
an employee’s lifetime, though it is possible that a partially retired
individual could return to working full-time. Once full retirement is chosen,
the additional benefits accrued for the percentage of time worked during phased
retirement will be recalculated and the individual will receive a composite
annuity.
For individuals vacillating between retiring and continuing
to work, this might be an option that could make the retirement itch easier
to scratch.
Is a phased retirement something you’d likely consider in
the future if it becomes available?
1 comment:
No, I would not consider this. It is too hard on someone taking my place to have me "show up at work again." Also, I am the type that when I retire, I want to be done with this phase of my life and start the next - not linger on the edges.
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