OPM Proposes Part-Time Employment for Older Feds Nearing Retirement as Way to Save Money
As part of the White House’s fiscal year 2013 budget released last week, the Office of Personnel Management (OPM) proposed a plan that would allow older federal employees to work part-time as a way to phase into retirement.
“Many individuals who are nearing the end of their working lives do not want to completely stop working, although they no longer wish to do so on a full-time basis,” the budget said.
The proposal would allow federal employees who are approaching retirement to continue working while receiving a partial annuity and earning additional retirement benefits based on their part-time employment.
The budget said that the proposal could save agencies $720 million over the next ten years by not having to immediately replace the employees and by postponing payment of retirement benefits.
Those employees who chose to phase into retirement would be required to mentor younger employees.
“This proposal will help encourage those individuals to continue working for the federal government and will enhance the attractiveness of late-career part-time employment, thereby facilitating continuity of operations and training of less experienced employees,” the budget said.
The White House’s fiscal year 2013 budget is available here.
Posted in General News