Phased retirement combines continued federal work with a partial retirement benefit under an approved arrangement. It is voluntary and requires agency agreement; meeting age and service conditions does not create a right to participate.
OPM describes a half-time work structure with a partial annuity and mentoring responsibilities. The actual eligibility, position, work arrangement and final-retirement treatment require review with the employing agency.
Read the proposed agreement as a work plan
| Item | What to confirm in writing |
|---|---|
| Eligibility and coverage | Applicable retirement system and participation conditions |
| Agency approval | Authorized decision-maker, start date and any term limits |
| Work schedule | Approved hours, duties and treatment of changes |
| Mentoring | Required activities, allocation and documentation |
| Pay and benefit estimate | Salary, partial annuity and deductions shown separately |
| Exit process | Final retirement or other permitted change and required notices |
OPM generally requires at least 20 percent of phased work time to involve mentoring, subject to applicable exceptions. Ask the agency how that requirement applies to the proposed assignment. An informal promise to help a successor is not the same as an approved mentoring plan.
Keep cash flow and final retirement separate
Do not add a full pension estimate to part-time salary. Ask for the phased benefit calculation, expected deductions and insurance treatment. Compare the proposed arrangement with a dated full-retirement estimate using consistent assumptions.
The final annuity after phased retirement requires its own processing. Keep records of the work period and ask how the final computation will be documented. Neither a general CSRS calculator nor a general FERS calculator models phased retirement.
Questions before signing
- Is this position and retirement category eligible?
- Has the agency actually approved participation?
- How will mentoring and work time be documented?
- What happens if duties, schedule or agency needs change?
- Which deductions continue, and from which payment?
- What steps are required to enter final retirement?
Use the application handoff checklist to assign employee, HR and payroll responsibilities. Keep agency approval and the final estimate together; a description of the program is not an approved individual agreement.
Browse federal benefits, retirement and insurance topics or read how we prepare and check our guides.
Sources
- OPM: Learn more about phased retirement benefits, checked November 4, 2026
- OPM: Types of Retirement (FERS), checked November 4, 2026
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