Phased Retirement – FEGLI

On August 8, 2014, OPM issued the final regulation to implement phased retirement. Phased retirement is a new human resources tool that allows full-time employees to work a part-time schedule while beginning to draw partial retirement benefits. Eligible employees who obtain the consent of an authorized agency official to enter phased retirement are deemed to be full-time employees for the purpose of the FEGLI Program, and the FEGLI withholding and employer contribution will be the same as for full-time employees. Basic and Optional coverage (if elected) for phased retirement employees is the same as for full-time employees.

Content last reviewed: 12/07/2016-TMH