Presentation given to ABC-C by Ms. Cary Stone, Branch Chief Branch 3.

1. Phased Retirement
Cary Stone

2. Agenda
• Definition / Purpose
• Who can apply
• Who cannot apply
• Entering Phased Retirement
• Questions for Agency
• BALs
• Directive Type Memorandum
• Agreement
• Estimates
• Retirement
• Forms
• BATs

3. Definition
• HR tool to retain employees who would have fully retired but are willing to
continue working for agreed length of time on a part time basis while
mentoring
• Paid for part time service worked (currently half – 50%) in addition to
partial (currently half – approx. 50%) annuity they would be receiving had
they fully retired
• NOT an ENTITLEMENT

4. Purpose
• Assist agencies with knowledge management and short term continuity of
operations and mentoring
• Prepare next generation of experts, manage workforce, promote best
practices and share knowledge

5. Who Can Apply
• Covered under CSRS or FERS
• CSRS
• 55 years of age with 30 years of service
• 60 years of age with 20 years of service
• FERS
• MRA with 30 years of service
• 60 years of age with 20 years of service
• Employed for past 3 years under
FULL TIME work schedule
• Willing and able to meet mentoring
requirement (20% of part time
schedule must be spent mentoring)

6. Who Can NOT Apply
• Employees who qualify for
retirement under LEO / FF /
ATC, Nuclear Materials Couriers,
Capitol Police, Supreme Court
Police and *Customs and Border
Protection Officers
* Hired on/after 7/06/2008
• FERS MRA+10 retirees
• Disability retirees
• 62 with 5

7. Entering Phased Retirement
• Approval authority delegated to Agency
• Voluntary participation – requires consent of employee and the employing
agency, must receive/have written approval
• Agency must provide written guidance on criteria used to approve /
disapprove phased retirement applications

8. Questions for Agency
• Is a part time work schedule appropriate for the position?
• Is the employee willing and able to meet the mentoring requirement?
• How will the change to a part time work schedule impact the ability to meet
work goals / objectives?
• Number of hours a phased retiree may work cannot exceed half time (40
hours a pay period)

9. BALs
• 14-106 Data Element Values for New Phased Retirement Program
• 14-108 Phased Retirement Employee FAQs
• 14-109 Phased Retirement Instructions for Personnel and Payroll Offices
• 14-110 Instructions for Personnel and Payroll Offices
• 14-111 Instruction Pamphlets for Completing Application for Phased and Full Retirement
• 14-112 SF 3116 Phased Employment / Phased Retirement Status Elections
• 14-208 Phased Retirement and FEGLI Program Guidelines
• 14-209 Phased Retirement and FEHB Program Guidelines

10. BAL 14-106
• Nature of Action Codes
• NOA 615 – Phased Employment / Phased Retirement (entering phased retirement)
• NOA 616 – Opt out of Phased Employment / Retirement (returning to full
employment)
• NOA 307 – Full Retirement Status – Voluntary
• NOA 308 – Full Retirement Status- In Lieu of Involuntary Separation (ILIS)
• New Work Schedule Code: R (distinguishes between regular PT and Phased
Retirement PT)

11. BAL 14-106
• Annuitant Indicator Codes
• W – former CSRS Phased Retiree
• M – former FERS Phased Retiree
• X – former CSRS Phased Retiree who is also a retired military officer
• N – former FERS Phased Retiree who is also a retired military officer
• Y – former CSRS Phased Retiree who is also retired military enlisted
• P – former FERS Phased Retiree who is also retired military enlisted

12. BAL 14-108
• What is Phased Retirement? (see Definition)
• Who is eligible to participate? (see Who Can Apply)
• Are there employees who are excluded? (see Who Can Not Apply)
• How does Phased Retirement work? (GRB examples provided)
• How does the part time work schedule impact FEHB and FEGLI?
• Employee is considered to be working full time – costs are the same as a full time employee
• Are FERS employees eligible for the annuity supplement while in Phased Retirement?
• NO

13. BAL 14-108
• Can employee retire or file for Disability while in Phased Retirement?
• NO
• What happens if employee dies before entering full retirement?
• Will be deemed to be a full time employee for purposes of determining survivor
benefits – Death In Service

14. BAL 14-109
• Employees in Phased Retirement work on a part time basis (40 hours a pay period)
and draw a partial retirement benefit (approximately half)
• May continue to contribute to TSP
• Will earn LA and LS at the rate of a regular part time employee (4 hours of LA and
2 hours of LS per pay period)
• Military Deposit must be paid in full PRIOR to entering Phased Retirement
• Deposit / Redeposit must be paid PRIOR to OPM completing the Phased
Retirement application

15. BAL 14-109
• Phased Retirement Annuity Computation
• CSRS
• 1.5% x H3 x 5 years + 1.75% x H3 x 5 years + 2% x H3 x remaining years & months =
% x 50%
• FERS
• 1% x H3 x years & months = % x 50% -or-
• 1.1% x H3 x years & months = % x 50% (if 62 years old w/ at least 20 years of
service)

16. BAL 14-110
• Completing Election Form
• Completing Retirement
Application
• Effective Date of Election
• Processing Personnel Action
• Submitting Records to OPM
• Withdrawing Election
• Electing full Retirement Status
• Opting Out

17. BAL 14-111
• Four new instruction pamphlets:
• SF 2825 – Info and Instructions for Completing an Application for Phased Retirement
under CSRS
• SF 2826 – Info and Instructions for Completing an Application for Full Retirement
Status (from Phased Retirement) under CSRS
• SF 3117 – Info and Instructions for Completing an Application for Phased Retirement
under FERS
• SF 3118 – Info and Instructions for Completing an Application for Full Retirement
Status (from Phased Retirement) under FERS

18. BAL 14-112
• SF 3116 is divided into 3 parts
• Part 1A: Election of Phased Employment / Phased Retirement
• Part 2A: Election to End Phased Employment / Phased Retirement and Return to
Regular Employment Status
• Part 3A: New Agency Consent to Continue Phased Employment / Phased Retirement
• Part 3B: Election to End Phased Employment / Phased Retirement Status Upon Move
to Another Agency

19. BAL 14-208
• Phased Retirement FEGLI Guidelines
• FEGLI coverage for CSRS and FERS employees – deemed to be full time (amount of
coverage, withholdings and employer contributions)
• During Phased Retirement, premiums withheld from employee’s salary
• Entering Phased Retirement – not considered a QLE to make a change
• Entering Full Retirement – Phased Retirement is creditable towards 5 years to be
eligible to continue into retirement

20. BAL 14-209
• Phased Retirement FEHB Guidelines
• FEHB coverage for CSRS and FERS employees – deemed to be full time
(withholdings and employer contributions)
• During Phased Retirement, premiums withheld from employee’s salary – maintains
premium conversion benefits
• Entering Phased Retirement – not considered QLE to make a change
• Entering Full Retirement – Phased Retirement is creditable towards 5 years to be
eligible to continue into retirement

21. Directive Type Memorandum (DTM)
• Still a work in progress, should be available early / late Spring 2015
• Will send out final copy once approved and signed

22. Agreement
• Also still a work in progress
• Goal is to have the same written agreement for all DoD Agencies
• Will have space reserved for specific remarks
• Signed / approved by employee, Supervisor and Approving Official

23. Estimates
• Who can request?
• Will there need to be an agreement/potential agreement in place prior to
requesting?
• Will they have access in EBIS to run their own calculations?
• Will GRB be ready to calculate the new Phased Retirement estimates (3 will
be required)
• Entering Phased Retirement
• Entering full retirement from phased retirement
• Estimate if didn’t enter phased retirement and just continued working as a full time employee

24. Retirement
• Must have written agreement in place prior to submitting Application
• Can only enter Phased Retirement once
• Can be extended with a new agreement in place
• To go back to full time employment; employee, supervisor and approving
official must agree
• At the end of the time limited agreement, Phased Retiree will enter full
retirement

25. Pat FERS (entering Phased Retirement)
• Phased Retirement effective date: 12/31/2014
• High – 3: $66,858
• Current Salary: $69,440
• Creditable Service: 24 years 9 months
• Unreduced FERS Annuity: 24.75% x $66,858 = $16,547.36 ($1,378.95 monthly)
• Phased Retirement factor (50%): $16,547.36 x 50% = $8,273.68 ($689 monthly)
*NO FERS Annuity Supplement is payable during PR
• $8,237.68 + [$69,440 (.50)] = $42,993.68

26. Pat FERS (entering Full Retirement)
• Full Retirement effective date: 12/31/2016
• High – 3: (deemed to have worked FT during PR) $72,210
• Creditable Service: 26 years 9 months
• Phased Retirement Annuity (updated by COLAs) applied during Phased Retirement Status:
• 12/1/2015: No COLA applied – under age 62
• 12/1/2016: $8,273.68 plus 2.3% = $8,463.97
• Final portion of Full Retirement Annuity (no reductions and including unused LS credit):
• $72,210 x 29.425% = $21,247.79 x 50% (working %) = $10,623.90
• Full Retirement Annuity (no reductions):
• $8,463.97+ $10,623.90 = $19,087.87 ($1,590.66 monthly)

27. Pat FERS (Regular Retirement)
• Had Pat continued working full time (not entering PR) and retired fully on
12/31/2016:
• High – 3: $72,210
• 26 years 9 months of service (29.425%)
• $72,210 x 29.425% = $21,247.79 ($1,770.65 monthly) – (without reductions)
*Difference of $179.99 monthly ($1,770.65-$1,590.66)

28. Terry CSRS (entering Phased Retirement)
• Phased Retirement effective date: 12/31/2014
• High – 3: $66,858
• Current Salary: $69,440
• Creditable Service: 36 years 9 months
• Unreduced CSRS Annuity: 69.75% X $66,858 = $46,633.45 ($3,886.12 monthly)
• Phased Retirement factor (50%): $46,633.46 x 50% = $23,316.73 ($1,943.06
monthly)
• $23,316.73 + [$69,440 (.50)] = $58,036.73 annually

29. Terry CSRS (entering Full Retirement)
• Full Retirement effective date: 12/31/2016
• High – 3: (deemed to have worked FT during PR) $72,210
• Creditable Service: 37 years 9 months
• Phased Retirement Annuity (updated by COLAs) applied during Phased Retirement Status:
• 12/1/2015: $23,316.73 plus 2.1% = $23,806.38
• 12/1/2016: $23,806.38 plus 2.3% = $24,353.93
• Final portion of Full Retirement Annuity (no reductions and including unused LS credit):
• $72,210 x 71.75% = $51,810.68 x 50% (working %) = $25,905.34
• Full Retirement Annuity (no reductions):
• $24,353.93 + $25,905.34 = $50,259.27 ($4,188.27 monthly)

30. Terry CSRS (Regular Retirement)
• Had Terry continued working (not entering PR) and retired fully on
12/31/2016
• High – 3: $72,210
• 37 years 9 months of service (71.75%)
• $72,210 x 71.75% = $51,810.68 ($4,317.56 monthly) – (without reductions)
*Difference of $129.29 monthly ($4,317.56-$4,188.27)

31. Forms
• SF 2825 – Info and Instructions for completing an Application for Phased Retirement
under CSRS
• SF 2826 – Info and Instructions for completing an Application for Full Retirement
Status (from Phased Retirement) under CSRS
• SF 3117 – Info and Instructions for completing an Application for Phased Retirement
under FERS
• SF 3118 – Info and Instructions for completing an Application for Full Retirement
Status (from Phased Retirement) under FERS

32. BATS Tracking
• Working with Dana on BATS
• Track those entering Phased Retirement
• Track those returning from Phased Retirement to regular employment
• Track those leaving Phased Retirement for full retirement
• Track estimates requested for potential Phased Retirement

33. Wrap-up
• Review, Review, Review
• Stay on top of all the Phased Retirement BALs
• Watch all past and upcoming Phased Retirement Webinars from OPM
• Watch for updates on the ABC-C site as we get closer

34. Questions?