NARFE Applauds House Approval of Provision Extending Agency Authority to Rehire Annuitants Without Salary Offset

Alexandria, VA – The National Active and Retired Federal Employees Association (NARFE) applauds House passage of a measure that would extend, for another five years, the authority of federal agency heads to rehire federal annuitants without a salary offset. The extension was included as part of the National Defense Authorization Act for Fiscal Year 2015, which passed the House today. NARFE urges swift Senate action on this legislation.  

“Over the last five years, this authority has proved important for the successful recruitment, retention and mentorship of our federal civil servants,” said NARFE National President Richard G. Thissen. “This is especially important now, as agencies balance workloads amid an ongoing retirement wave and sequestration-level funding.”

Prior to the enactment of this authority in 2009, an agency rehiring an annuitant had to request a waiver from the Office of Personnel Management. Without a waiver, the salary of re-employed annuitants generally is reduced (offset) by the amount of their annuity. Those case-by-case waivers often were not approved in a timely manner and were reserved only for emergency or unusual circumstances.

“This authority allows agencies to mitigate the loss of institutional memory caused by departing employees,” Thissen said. “It helps ensure the government can function effectively while also filling critical gaps and providing training for the next generation of federal managers and employees. In its five years of use, the waiver authority has proven to be a valuable tool for agency leaders.”

Agency heads supported an extension of the authority, which was provided in the National Defense Authorization Act for Fiscal Year 2010 but expired in October. The special waiver authority applies only on a limited and part-time basis, in response to concerns that it could be used to supplant rather than supplement the current workforce.

“NARFE thanks Rep. Gerald E. Connolly, D-VA, and Sen. Susan Collins, R-ME, for spearheading this extension in their respective chambers,” Thissen concluded.

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The National Active and Retired Federal Employees Association (NARFE), one of America’s oldest and largest associations, was founded in 1921 with the mission of protecting the earned rights and benefits of America’s active and retired federal workers. The largest federal employee/retiree organization, NARFE represents the interests of nearly five million current and future federal annuitants, spouses and survivors.