Q & A Session – Retirement and New Job Following RIF


Ask the Lawyer received the following question (paraphrased for easier reading and clarity) from a reader on a legal matter that might be of interest to the entire audience.


I received a Reduction in Force in October 2011. I am 55 years old and have been verbally offered a job in Arizona. I am still waiting for the documented offer.

The wage grade I retired from was WG-10. The new wage grade I am sure will be lower with a different locality pay.

My present retirement income is $1,300 a month. Will I be subject to a pay reduction? Will my last high-3 grade be affected if I decide to accept the job indefinitely when my retirement is permanent? Will I be required to pay my own relocation costs? What kind of negotiating tools do I have as I am also a 5-point veteran?


I do not fully understand your question. I am assuming you retired under discontinued service retirement and were not eligible for voluntary retirement. As such, you are eligible for reemployment if someone offers you a job. If you go back to work, you will stop receiving an annuity and will receive retirement credit for future service. If your new salary is lower, it will not reduce your high-3 as you have already determined that. If your new salary is higher, your high-3 could increase. Your pay will be set by whatever it is in the new location and you will most likely have to pay your moving expenses.

Bill Bransford is managing partner of Shaw Bransford & Roth PC.

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