Dual Compensation Waivers for Reemployed Annuitants

Purpose

This Order provides guidance and procedures for the General Services Administration (GSA) when requesting and approving the reemployment of individuals who are federal retirees and receiving annuities, without discontinuing or offsetting the retiree's pay.

Background

In general, retirees from the Civil Service who are reappointed are required to have their pay reduced by an amount equal to their pension (see, for example, 5 U.S.C. § 8344, dating to Section 13 of the Civil Service Retirement Act Amendments of 1956, 70 Stat. 757, as well as 5 U.S.C. § 8468 and 5 C.F.R. Part 837). In 1990, Congress addressed this general rule by creating a permanent authority known as a “dual compensation waiver” (see Section 108 of Public Law 101-509, the Federal Employees Pay Comparability Act of 1990, codified at 5 U.S.C § 8344(i) and 5 U.S.C.§ 8468(f)). In 1991, the Office of Personnel Management (OPM) issued interim regulations which are today found codified within 5 C.F.R. Part 553. Final civil service regulations were issued on April 10, 1992 (57 FR 12405) and have been revised several times (in 2000 and 2007).

The purpose of this permanent waiver authority is to allow Federal agencies to hire retirees, without salary offset, when there is “exceptional difficulty in recruiting or retaining qualified candidates for particular positions” (56 FR 6205, February 14, 1991) or when a temporary appointment is needed to address an “emergency involving a direct threat to life or property or other unusual circumstances” (see for example 5 U.S.C. § 8344(i)).

This Order also incorporates a second, independent approval authority set forth in the National Defense Authorization Act (NDAA) for Fiscal Year 2010, Public Law 111-84, section 1122 (2009) covering reemployed annuitants on a temporary and part-time basis. This temporary law was extended under NDAA for Fiscal Year 2020, Public Law 116-92, section 1117 (2019) allowing usage by agencies within the executive branch through December 31, 2024. For more information, see the temporary codification at 5 U.S.C. § 8344(l) and 8468(i). 

 Scope and Applicability

The provisions of this policy apply to the reemployment of annuitants who would be subject to annuity discontinuation or salary offset upon reemployment into the Federal service. “Annuitant" (or retiree) refers to a current or former civilian employee who is receiving an annuity under chapter 83 or chapter 84 of subpart G in Part III of Title 5, United States Code, based on his or her service, and to current employees who meet the legal requirements and are applying for, or have announced their intention to apply for, such annuity. 

The Office of Inspector General (OIG) has independent personnel authority. See Section 6 of the Inspector General Act of 1978, (5 U.S.C. App.3), as amended (Inspector General is authorized “to select, appoint, and employ such officers and employees as may be necessary for carrying out the functions, powers, and duties of the Office of Inspector General”) and GSA Order ADM 5450.39D CHGE 1, GSA Delegations of Authority Manual (Delegations Manual), Chapter 2, Part 1 (“the Inspector General has independent authority to formulate policies and make determinations concerning human capital issues within the [OIG]” and GSA determinations/delegations do not limit that authority). Similarly, GSA specifically recognizes that the Inspector General has independent authority to formulate policies and make determinations concerning training, employee development, and career management.