The Foreign Service Journal, May 2022

THE FOREIGN SERVICE JOURNAL | MAY 2022 29 A survey conducted by FSI of employees who retired in 2018 and 2019 found that 32 percent had taken new federal positions. years give us much to continue to contribute to the nation. And, especially for those of us obligated by the up-or-out system to retire in our late 50s or early 60s, we may need additional income for at least a few more years. Thus, many newly retired Foreign Service members return to work for the government. A survey conducted by FSI of employees who retired in 2018 and 2019 found that 32 percent had taken new federal positions. Those numbers undoubtedly would have been higher if Secretary of State Rex Tillerson had not frozen hiring from February 2017 to March 2018. Some Foreign Service retirees who return to government service find employment under a personal services contract (PSC) or, more rarely, in a full-time Civil Service job. But the vast majority work part time in the re-employed annuitant (REA) program. Because 85 percent of the Foreign Service works for the State Department and my REA experience was there, this article focuses on the REA program at State. For information regarding the U.S. Agency for International Development’s similar short-term appointment roster (STAR) program, see USAID Automated Directives System (ADS), Chapter 414.3.3.6. The Re-Employed Annuitant Program The REA program, which previously went under the clunky title “while actually employed” (WAE), allows Foreign Service retirees to work up to half of each calendar year while still receiving their full federal pension (but see the note later in this article about annuity supplement payments). The specific limit is 1,040 hours, although the number actually worked varies from position to position. For example, I averaged 480 hours per year in my REA job. The work schedule also depends on the position. REAs sent overseas to cover staffing gaps at embassies and con- sulates might work several months straight, followed by a long inactive period, whereas my FSI position had me working every single month for an average of 40 hours. In addition to the limit on hours worked, the REA program has an annual salary cap. Annual REA earnings plus your annu- ity payments may not exceed the higher of your annual base salary (including locality pay) at retirement or the annualized salary of the REA position. The cap’s 12-month calculation period starts on the day of your appointment. For those of us retiring under the Foreign Service Pension System, which came into force in 1984, our pensions rarely exceed 50 percent of our final salary, so the earnings cap usually does not come into play. Another important fact is that the REA program is decentral- ized. Each bureau controls its own positions and decides whom to hire to fill them. While retirees looking for REA opportunities can investigate multiple bureaus, only one bureau can put them on their REA rolls (bureaus can temporarily lend an REA to another bureau, but it is not done often). Appointments are for one year, subject to renewal if the bureau still has the need and liked your performance. REAs serve “at will” and thus can be terminated with no appeal. Bureaus are selective about the number of individuals on their rolls, as there are administrative costs associated with each name on the rolls. Salaries vary from bureau to bureau and from job to job. I was paid as a GG (Government Grade)-13 Step 10 (currently $66.54 per hour before deductions for Social Security, Medicare and taxes), for example. But some REA jobs pay more, and some pay less. Note that most retirees under age 62 who are receiving an annuity supplement in addition to their regular pension face an earnings test that will reduce their annuity supplement by $1 for every $2 in wage income over $19,560 a year. Since REA salaries—like all wage and net self-employment income—are categorized as earned income, they factor into the earning test. Bureaus pay for international travel, but typically only from Washington, D.C. Bureaus pay per diem during required training such as the Foreign Affairs Counter Threat course. REAs assigned overseas receive applicable allowances. A valid security clear- ance is always required. For overseas positions, a worldwide medical clearance is almost always required. Very few REA jobs are virtual. REAs are paid only for the hours worked. They do not accrue annual leave or sick leave. REAs may not contribute to the Thrift Savings Plan. Federal health and life insurance premiums are deducted from their Foreign Service pension, not their REA sal- ary. A rarely mentioned fact is that, even when not actively work- ing, a retiree who is on a bureau REA roll is a federal employee and is thus subject to Hatch Act restrictions on certain political activities.