"Trying out" Fed Retirement - is it better to retire or take LWOP?

[Anonymous]

I'm eligible for early retirement as a Fed - I'm coming up on my minimum retirement age. Mentally I'm ready to go, but I'm not sure if I should for financial reasons - kids are still in college.

Is it financially better to retire and then unretire, or take A/L and LWOP for a while (6 months? A year?) to "test" retirement?

Has anyone retired from the Feds and then unretired? How did that work?

[Anonymous]

How would you unretire?

[Anonymous]

Over 35+, I don't remember ever seeing someone unretire and come back as a Fed after retirement. Many come back as contractors. What makes you think you can come back in after you check out? I have to say, you don't sound ready. Understand the retirement math, income, current economic situation (and how it will affect your COLA)...etc. A lot of planning needed before you decide.

[Anonymous]

If the only thing keeping you there are potential financial reasons it should be pretty easy to figure out if you can retire or not. If the numbers look close I would stick it out another year or two.

Alternatively, if you are in a field where you can get employment elsewhere I would apply for other jobs and find something you like then retire.

[Anonymous]

Unretiring = getting another Fed job, applying for and getting hired.

[Anonymous]

Anonymous wrote:Over 35+, I don't remember ever seeing someone unretire and come back as a Fed after retirement. Many come back as contractors. What makes you think you can come back in after you check out? I have to say, you don't sound ready. Understand the retirement math, income, current economic situation (and how it will affect your COLA)...etc. A lot of planning needed before you decide.

I know one very specialized ALJ who unretired, but it was a very unique situation

[Anonymous]

Anonymous wrote:

Anonymous wrote:Over 35+, I don't remember ever seeing someone unretire and come back as a Fed after retirement. Many come back as contractors. What makes you think you can come back in after you check out? I have to say, you don't sound ready. Understand the retirement math, income, current economic situation (and how it will affect your COLA)...etc. A lot of planning needed before you decide.

I know one very specialized ALJ who unretired, but it was a very unique situation

PP you are responding to. The only one-time person was allowed came back, he had a very unique skill set. Even with that, his time was limited to 6 months and required Secretary's Office approval. Maybe it's more frequent at other agencies but at my mid-sized agency, we just don't see it.

[Anonymous]

I've seen it happen in my agency a few times. I believe that there may be time limits for those who return as retired annuitants and there are rules about how much you would get paid.
https://www.fedweek.com/retirement-financial-planning/thinking-of-returning-to-work-after-retiring-know-this-distinction/

[Anonymous]

Your office would have to agree to the LWOP and I doubt they would. It means they wouldn't get someone to replace you which means everyone else would have to pick up your slack. This wouldn't fly at my agency.

Similarly you can't just "unretire" and go back to your old job. They will have hired your replacement. You could certainly "unretire" by applying for positions on USAJOBS but obviously nothing is guaranteed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Over 35+, I don't remember ever seeing someone unretire and come back as a Fed after retirement. Many come back as contractors. What makes you think you can come back in after you check out? I have to say, you don't sound ready. Understand the retirement math, income, current economic situation (and how it will affect your COLA)...etc. A lot of planning needed before you decide.

I know one very specialized ALJ who unretired, but it was a very unique situation

PP you are responding to. The only one-time person was allowed came back, he had a very unique skill set. Even with that, his time was limited to 6 months and required Secretary's Office approval. Maybe it's more frequent at other agencies but at my mid-sized agency, we just don't see it.

PP, The agency begged him to come back because we had a few of ALJs leave for private practice. The area is incredibly niche and they needed someone with experience. This was the one employee who I've seen un-retire and it took a specific series of events for it to happen.

[Anonymous]

Retired annuitants.

But I get what you're saying. I think A LOT of us wish we could work 20 or 30 hours a week (and be paid less). I don't even need the health insurance, which I realize is a factor with part time work.

[Anonymous]

How could you test it finacially without giving up your salary and collecting your pension? LWOP /AL would not do that.

[Anonymous]

Anonymous wrote:Retired annuitants.

But I get what you're saying. I think A LOT of us wish we could work 20 or 30 hours a week (and be paid less). I don't even need the health insurance, which I realize is a factor with part time work.

Yup, or part-time contract work.

[Anonymous]

Talk to your HR or retirement benefits group.

[Anonymous]

You do not lose health insurance if you are a PT fed. You just pay slightly more as they prorate it. I’ve been a part time fed since Covid started, and my entire family is on my health insurance.