Phased retirement: Ready, set, go?

Studies in and out of government show that when it comes to retiring, some people are scared. They are worried about the drop in income and losing touch with people they’ve spent a lot of time with over the years.

For some, the ideal solution is to keep working. But not as much and not as hard.

But operations — federal or private sector — don’t operate for the convenience of the workers. They’ve got a product to produce, sell or buy, or services to perform to stay in business.

Now Uncle Sam thinks he may have the solution: Phased retirement. Eligible employees will continue to work just as hard (maybe harder). But only part time.

The advantage to the government is that the long-time, senior employees must spend at least 20 percent of their time mentoring younger or less experienced workers.

But phased retirement isn’t as easy as telling long-timers they can go part-time. It took two years, after Congress authorized the program, for OPM to set up the rules. Given the complexity of the situation — i’s to be dotted and t’s to be crossed — that may be the equivalent of warp speed government-style. It’s a very complex program involving lots of laws, compromises and finances, including the TSP and accumulation of benefits while in phased retirement.

When she announced the final regulations, OPM Director Katherine Archuleta said it will be a “win-win” for employees and government agencies.

The National Active and Retired Federal Employees Association estimates that over 10 years, phased retirement will save the taxpayers $450 million in pay and training costs.

So how’s it going to work? Who will be eligible?

According to OPM’s final regs, employees can begin applying for phased retirement in early November. That’s assuming agencies have their own modifications in place and will be participating in the program. So what’s next?

Tomorrow at 10 a.m., on our Your Turn radio show, we’ll devote the entire hour to phased retirement. Benefits expert Tammy Flanagan, from the National Institute of Transition Planning, will explain the ins and outs of phased retirement. She’ll be joined by Federal News Radio’s resident expert Shefali Kapadia. And me!

Listen live Wednesday, 10 a.m. EDT, at www.federalnewsradio.com or, in the D.C. area on 1500 AM.

Immediately following the show, we’ll have a webchat. Just you, Tammy, Shefali and me. To sign up for it, click here.

NEARLY USELESS FACTOID:

By Michael O’Connell

The word “misspell” is one of the 100 most often misspelled words in the English language.

Source: Your Dictionary.

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Online Chat: Phased Retirement
Join Federal News Radio experts Wednesday, Sept. 10, from 11-11:30 a.m., for an online chat about phased retirement, a new option which allows eligible employees to work part time while drawing on part of their earned retirement benefits. Tammy Flanagan, senior benefits director at the National Institute of Transition Planning, joins Federal News Radio Senior Correspondent Mike Causey and Web Editor Shefali Kapadia to answer your biggest questions about the new retirement option being offered to federal employees.

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