Retirees Now Can Work in Defense Jobs at Full Pay and Keep Pension

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36. Retirees Now Can Work in Defense Jobs at Full Pay and Keep Pension * The Washington Post

WASHINGTON POST

March 24, 2004

Retirees Now Can Work in Defense Jobs at Full Pay and Keep Pension

By Stephen Barr

Page B02

The Pentagon has announced a new policy that will allow civil service retirees to return to work at the Defense Department and be paid a full salary while collecting their federal pension.

The policy change was approved by Congress last year as part of the fiscal 2004 defense authorization act and applies only to federal retirees hired by the Defense Department on or after Nov. 24, 2003.

Under previous law, civil service retirees who went back to work at Defense usually faced a deduction in pay equal to the amount of their annuities. Defense officials asked Congress to do away with the restriction as part of its overall effort to create a more flexible workforce. Officials also pointed out that Congress lifted the so-called double-dip curb on military retirees several years ago.

In a memo last week to senior Defense officials, David S.C. Chu, defense undersecretary for personnel and readiness, said the policy change "will help address the challenges of 'retirement-driven talent drain' as our current generation of dedicated civil servants become eligible to retire."

The new policy has been eagerly awaited by many government retirees wishing a return to public service. But some may be disappointed, because it comes with a number of restrictions.

The Pentagon said retirees should be hired only for jobs that have historically high turnover, a severe shortage of applicants or other significant recruiting problems. The retirees also must have specialized skills or qualifications "not generally available," according to the Pentagon guidelines accompanying Chu's memo.

To discourage perceptions that Defense employees could retire and easily reclaim their old job, the guidelines said that retirees cannot return to their previous or similar job without the approval from the "next level manager or supervisor," who must certify that critical conditions justify the return.

Although the guidelines do not limit the length of time a retiree may hold a job, the guidelines stipulate that retirees may work no longer than a year when assigned "to mentor less experienced employees and/or to provide continuity during critical organizational transitions." Before any retiree can be hired, the position must be offered to qualified defense workers who have lost their job through no fault of their own, the Pentagon said.