Am I Better Off Waiting Until After Jan. 1 To Retire?

Question: I retired under FERS from the VAMC just to return 1 year later to be re-employed as an annuitant. I am planning to retire for good this year. I’ll have been reemployed for three years in February 2023. Would it be better to wait and retire the end of January 2023?
Reg’s Response: When you retire again, you’ll be entitled to a supplemental annuity based on your years and full months of service.

Retiring on January 31 would entitle you to one more month of service and be used in your annuity computation. Also, since that supplemental annuity will be calculated using your biweekly pay rate for your entire period of reemployment, the annual pay increase that goes into effect on January 1, 2023, would give you a two-pay period bump in your annuity computation.

Reg Jones is the resident expert on retirement and the federal government at Federal Times. From 1979 until 1995, he served as an assistant director of the U.S. Office of Personnel Management handling recruiting and examining, white and blue collar pay, retirement, insurance and other issues. Opinions expressed are his own.

Citation-The Federal Times- November 14, 2022