	Introduction

Section 100121 of P.L. 112-141 , the Moving Ahead for Progress in the 21 st Century Act (MAP-21, enacted July 6, 2012) provides the authority for a new phased retirement option for certain employees covered by the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS), the retirement plans that cover most of the civilian federal workforce. For eligible federal employees, phased retirement is a voluntary option that requires approval from their employing federal agencies. Employees participating in phased retirement generally must also engage in mentoring activities (except for U.S. Background

Phased retirement allows certain federal employees who are otherwise eligible for retirement under CSRS or FERS to work a reduced schedule while receiving a reduced salary as well as a prorated percentage of their retirement benefits. Before P.L. 112-141 , federal law generally prohibited the concurrent receipt of a federal salary and a federal pension (i.e., dual compensation ). Phased Retirement Authority

Section 100121 of P.L. Postal Service, are subject to a requirement that they spend at least 20% of their reduced work hours engaged in mentoring activities. Phased retirement is not an entitlement; it requires the mutual agreement of the eligible employee and the employee's agency. Under the implementing regulations, agencies may begin accepting applications from employees for phased retirement beginning November 6, 2014. Eligible employees must secure written approval from the employing agency to enter into phased retirement. Consequences of Phased Retirement for Federal Employee Benefits

Currently, phased retirees are authorized to work 50% of their previous work schedules and receive 50% of their previous federal salaries.
On July 6, 2012, P.L. 112-141, the Moving Ahead for Progress in the 21st Century Act (MAP-21), was signed into law. Section 100121 of P.L. 112-141 provides authority for a new phased retirement option for certain federal employees.
Phased retirement allows eligible, full-time employees covered by the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS) to move to a part-time work schedule while simultaneously receiving partial retirement benefits. Employees participating in phased retirement, with the exception of U.S. Postal Service employees, must spend at least 20% of their work hours engaged in mentoring activities. Phased retirement is not an entitlement; eligible federal employees must apply and receive approval from their employing agencies to enter phased retirement.
Under the implementing regulations adopted by the Office of Personnel Management (OPM) on August 8, 2014, phased retirement will initially be structured as a 50% work schedule, with the participating employee receiving 50% of his or her federal salary and about 50% of his or her federal pension benefit (also referred to as an annuity). Employing federal agencies may accept applications from employees for this new phased retirement option beginning November 6, 2014.
This report provides
background on dual compensation (i.e., concurrent receipt of both a federal salary and a federal pension); an overview of the phased retirement authority under P.L. 112-141; a summary of eligibility requirements for employee participation in phased retirement; and an explanation of the consequences of phased retirement status for employee benefits.