You may soon have an additional option to consider as you approach retirement age: retiring part-time and working part-time at your current federal job.
Courtesy Goodyear, Ariz.
The Senate approved an amendment that would authorize the use of phased retirements for retirement-eligible feds. Under a phased retirement, a fed can work part-time — say, one, two, three or four days a week — and collect a partial retirement annuity for the time he or she is not working. And, throughout that time, the fed continues to earn partial retirement benefits.
These proposed phased retirements, which President Obama proposed in his 2013 budget request, could be available to as many as a half-million feds who are eligible to retire. The Obama administration estimates it could save $750 million over a decade. The CBO estimates a more conservative $465 million in savings over that time.
What do you think? Is this a good idea? Would you favor this option for yourself when you become retirement eligible (or if you already are)? Will this be a good thing for the government to do?