COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

Transcription

1 BY ORDER OF THE SECRETARY OF THE AIR FORCE AIR FORCE INSTRUCTION JUNE 2017 Personnel CIVILIAN PHASED RETIREMENT PROGRAM COMPLIANCE WITH THIS PUBLICATION IS MANDATORY ACCESSIBILITY: Publications and forms are available on the e-publishing website at for downloading or ordering. RELEASABILITY: There are no releasability restrictions on this publication. OPR: AF/A1C Certified by: SAF/MR (Mr. Jeffrey R. Mayo) Pages: 18 This instruction implements AFPD 36-8, Employee Benefits and Entitlements. In collaboration with the Chief of Air Force Reserve (AF/RE) and the Director of the Air National Guard (NGB/CF), the Deputy Chief of Staff for Manpower, Personnel, and Services (AF/A1) develops personnel policy for phased retirement. It does not apply to Air Force Reserve or Air National Guard civilian employees who are Air Reserve Technicians (ARTs). Ensure that all records created as a result of processes prescribed in this publication are maintained IAW Air Force Manual (AFMAN) , Management of Records, and disposed of IAW the Air Force Records Disposition Schedule (RDS) in the Air Force Records Information Management System (AFRIMS). Refer recommended changes and questions about this publication to the Office of Primary Responsibility (OPR) using the AF Form 847, Recommendation for Change of Publication; route AF Forms 847 from the field through the appropriate functional chain of command. This publication may be supplemented at any level: MAJCOM-level supplements must be approved by the HSC prior to certification and approval. The authorities to waive wing/unit level requirements in this publication are identified with a tier ( T-0, T-1, T-2, T-3 ) number following the compliance statement. See AFI , Publications and Forms Management, for a description of the authorities associated with the tier number. Submit requests for waivers through the chain of command to the appropriate tier waiver approval authority, or alternatively, to the publication OPR for non-tiered compliance items.

2 2 AFI JUNE 2017 Chapter 1 OVERVIEW 1.1. Phased Retirement Policy. This instruction establishes a process under which an Air Force employee may request phased retirement The provisions of phased retirement allow management officials to authorize certain employees, who are otherwise eligible to retire, the option to work and be paid for a half-time schedule of 40 hours per pay period while drawing partial retirement benefits for a specified length of time. The employee's work schedule changes from full-time to part-time status The purpose of phased retirement is to provide a period of transition into full retirement during which the employee mentors (transfers knowledge to) others for 20 percent (eight hours) of the half-time work schedule. Phased retirement is a human resources management tool. It is not an employee entitlement While an employee is in phased retirement, the employee continues to remain on the same position authorization the employee was on prior to phased retirement Phased retirement employees are not to be moved to an over-hire billet or to another authorization while in phased retirement Non-Discrimination Statement. This instruction is to be administered without unlawful discrimination because of race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), disability, genetic information, or prior Equal Employment Opportunity (EEO) activity.

3 AFI JUNE Chapter 2 RESPONSIBILITIES 2.1. Installation Commanders and Directors, Tenant Commanders and Directors, and Heads of Activities to Whom Appointing Authority is Delegated, Commanders of Combatant Commands, and Wing Commanders shall: Administer phased retirement program in accordance with law and regulation. (T-1) Ensure personnel are informed of their rights, responsibilities, and program requirements. (T-1) Ensure compliance with applicable directives in reporting and certifying mentoring requirement in time and attendance records. (T-1) Act as the approving official for phased retirement applications in accordance with guidance in this instruction. (T-1) See paragraph Immediate Supervisor must: Accept phased retirement applications from qualified employees. (T-1) Ensure the employee meets the participation eligibility requirements specified in Section 3.1. (T-1) Educate the employee on time limit agreement and mentoring obligation. (T-1) Determine if the requesting employee has significant and unique knowledge, skill, and/or experience necessary to educate other staff members that is critical to carrying out the mission or function of the organization. (T-1) Decide whether the employee will require mentoring training. (T-3) Agree on and establish a time limit and date that the employee will enter and end phased retirement within the prescribed limitations of this instruction. (T-1) Establish official part-time work schedule of the employee. (T-1) Submit complete and signed application package indicating "Recommend approval" or "Do not recommend approval" to approving official for consideration. (T-1) Ensure that Mentoring is a critical element to the approved phased retiree s performance standards. (T-1) Refrain from coercing any employee into entering phased retirement, as it is a voluntary program. (T-1) Monitor the phased retiree s work time and mentoring hours to ensure compliance with all phased retirement regulations and policies. (T-1) 2.3. Employees: Generate a phased retirement estimate prior to contacting Benefits and Entitlements Service Team (BEST) at Air Force Personnel Center (AFPC).

4 4 AFI JUNE Contact a BEST benefits specialist to obtain retirement counseling, annuity estimates, and civilian or military deposit/redeposit information (if applicable) prior to completing/submitting a phased retirement application Develop a mentoring plan with specific type of mentoring, mentee(s) and detail mentoring activities that the employee is to be performing. The plan is to be accomplished prior to the supervisor recommending approval/disapproval of request Submit application to enter phased retirement to the immediate supervisor (refer to the Applications section in paragraph 3.4. for the list of all required documents) Complete the Office of Personnel Management (OPM) approved mentor training For employees electing to pay Civilian Deposits/Military Deposits/Redeposits, complete payment prior to beginning phased retirement in order for it to be creditable at the time of full retirement Submit completed approval package to BEST Upon entering into phased retirement, complete mentoring plan and record hours worked in the local time and attendance system.

5 AFI JUNE Chapter 3 PHASED RETIREMENT 3.1. Participation Eligibility Requirements. In general, non-temporary, retirement-eligible employees, who meet all of the following requirements, may request to be considered for selection to enter phased retirement. Phased retirement regulations stipulate that to be eligible to participate, an employee is: Employed in the federal service, on a full-time basis for not less than the 3-year period preceding the effective date of his or her entry into phased retirement status In the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS), and is eligible for immediate retirement. This program limits participation to: CSRS employees who have at least 30 years of service and have attained at least age 55 or have at least 20 years of service and have attained at least age 60; or FERS employees who have at least 30 years of service and have attained their Minimum Retirement Age (MRA) or have at least 20 years of service and have attained at least age Exclusions. Those retirement eligible employees excluded from participation in phased retirement are: Currently employed on a part-time basis Not covered under either the CSRS or FERS Covered by special retirement systems: Law enforcement Officers Firefighters Air Traffic Controllers Covered by a special work schedule authority that does not allow for a regularly recurring part-time schedule. Examples may include, but are not limited to: Nurses covered by 38 U.S.C 7456 or 7456A; Firefighters not covered by the special retirement coverage; U.S. Civilians Overseas; Mission Critical Occupations (MCO); Positions funded by the central salary account; Employees only eligible for an MRA+10 retirement; Employees only eligible for retirement with at least 5 years of service and age 62; Employees out on Worker s Compensation; and

6 6 AFI JUNE An employee on a Performance Improvement Plan (PIP) or with a current formal disciplinary action Working Percentages. A full-time employee prior to phased retirement is to work a 40 hour per pay period schedule upon entering phased retirement. The authorized official may approve a phased retiree to perform work in excess of 40-hours only in rare and exceptional circumstances meeting all of the following four conditions: The work is necessary to respond to an emergency posing a significant, immediate, and direct threat to life or property; The authorized official determines that no other qualified employee is available to perform the required work; The phased retiree is relieved from performing excess work as soon as reasonably possible (e.g., by management assignment of work to other employees); and When an emergency situation could have been anticipated in advance, management made advanced plans to minimize any necessary excess work by the phased retiree Applications. The application for the Phased Retirement Program consists of the following documents: Department of Defense (DD) Form 3018, Phased Retirement Request and Agreement; Standard Form (SF) 3116, Phased Employment/Phased Retirement Status Elections, Part 1a; SF 2801, CSRS Application for Immediate Retirement, or SF 3107, FERS Application for Immediate Retirement; and Mentoring Plan Applying for Phased Retirement Employees meeting eligibility for phased retirement are to complete and submit the DD Form 3018, Phased Retirement Request and Agreement, and the Mentoring Plan to their immediate supervisor for endorsement The immediate supervisor will review package to ensure paragraphs through are completed prior to submitting to approving official. (T-2) The immediate supervisor is to indicate recommendation on the DD Form 3018, Section B, Block 8, prior to submitting package to the approving official for consideration The approving official will annotate approval/disapproval on the DD Form 3018, Section C, Block 3. (T-2) Commanders, directors, and HAF 3 letter directors are the approving officials for non-civilian senior executive (CSE) employees The approving official for a CSE is the Secretary of the Air Force. See AFI , Civilian Senior Executive Management.

7 AFI JUNE The package will be returned to the immediate supervisor where a copy of signed package will be filed in the Supervisor s Employee Work Folder. The original package is to be returned to the employee. (T-2) The employee is to complete and submit the SF 3116, Phased Employment/Phased Retirement Status Elections, along with appropriate Application for Immediate Retirement (SF 2801 for CSRS or SF 3107 for FERS) and the DD Form 3018, Phased Retirement Request and Agreement, to the BEST at AFPC for processing Application Withdrawal. An applicant may voluntarily withdraw his or her phased retirement application at any time during the approval process. The applicant has until the date prior to the effective date of the agreement to withdraw the application An applicant may withdraw his or her phased retirement application any time before the election becomes effective, but not thereafter An applicant cannot withdraw the application on/after the agreement date. On the agreement date, the employee is considered a phased retiree. To end phased retirement and return to full time status, see paragraph Criteria for Approval or Disapproval. The following criteria must be met in order for an employee to be eligible to enter phased retirement. In each case, the employer and employee must mutually agree that phased retirement is appropriate for the specific position and situation. All decisions must adhere to merit system principles. (T-3) Criteria for approval: The employee achieved a minimum rating of fully successful on his/her most recent annual performance evaluation The employee's part-time work schedule is appropriate for the employee's position The employee is willing and able to meet the mentoring requirement The employee's change in work schedule will not negatively affect the work unit's ability to meet goals and objectives The operational needs do not require the employee to work in excess of a fifty (50) percent work schedule The employee has knowledge that needs to be transferred As applicable, funding is available for both a phased retiree and a newly-hired employee The employee has not previously entered phase retirement. (Note: an individual may only enter phased retirement once.) 3.8. Filling behind a Phased Retiree. Hiring of a part-time employee to execute the remaining fifty (50) percent manning hours or the hiring of a full time over hire may only be accomplished if funding is available to support both the phased retiree's part-time salary and the part time/full time replacement Time Limit Agreement. As a condition for approval, an agreement between the employee and supervisor must be reached, establishing start and end dates. This agreement must be documented on the DD Form 3018 and signed by the employee, supervisor, and approving

8 8 AFI JUNE 2017 official PRIOR to the commencement of the phased retirement. Time limits may vary on a caseby-case basis in accordance with the following guidelines. (T-1) Time limits are to be set for any period up to a maximum of one (1) year from the start date of the agreement Additional time may be requested by either the employee or the approving official. All extensions are to be finalized at least thirty (30) calendar days prior to the expiration of the time limit agreement currently in effect, in increments not to exceed one additional year The maximum time an employee may participate in phased retirement overall is two (2) years While in phased retirement, the phased retiree continues to remain on the same position authorization while executing the manning hours at fifty (50) percent Phased retirees may voluntarily retire at any time prior to the expiration date of the time limit agreement, but the employee should consider processing time requirements At the end of the time limit agreement, the phased retiree s retirement is processed Disapproved Applications. Phased retirement is not an employee entitlement and not all employees and/or positions are suited for phased retirement. Authorized approving officials must indicate disapproval on the DD Form 3018, section B, and return the form to the employee s supervisor for filing in the Supervisor s Employee Work Folder. A copy is to be provided to the employee. (T-1) Ending Phased Retirement Status. An employee may request to end phased retirement through the following methods: Request to Return to Regular Employment Status in lieu of regular retirement - not later than 30 calendar days prior to expiration of the time limit agreement, the phased retiree may submit a request to return to regular employment status in lieu of regular retirement. The employee must obtain written approval from the approving official for phased retirement by submitting SF3116, Phased Employment/Phased Retirement Status Elections, Part 2. (Note: OPM requires receipt of this request at least 15 calendar days prior to expiration of the time limit agreement in order for timely processing.) Enter Immediate (Regular) Retirement - at any time prior to the expiration of the time limit agreement, the employee may enter immediate retirement by submitting an Application for Immediate Retirement (SF2801, CSRS or SF3107, FERS) Transfer to a Different Agency - not later than 3 calendar days before the expiration of the time limit agreement, the employee may transfer to a different agency and either: Return to regular full-time employment at the new agency Continue phased retirement, if the new agency approves If the employee fails to take any action within three (3) calendar days prior to the end of the time limit agreed upon, the employee will be deemed to have elected full, immediate retirement and such separation will be considered voluntary, based on the written agreement IAW 5 CFR (b) and (T-0)

9 AFI JUNE Denial of an Employee s Request to Return to Regular Employment. If the approving official denies an employee s request to return to full-time regular employment, the employee may elect to: Continue phased retirement for the remainder of the time limited agreement Request (within thirty (30) calendar days of expiration) approval to extend time limited agreement Transfer to a different agency and either: Return to regular employment at the new agency Continue phased retirement, if the new agency approves Apply for full retirement A denial may be appealable if the positon is a bargaining unit positon and covered by the negotiated grievance procedure under the collective bargaining agreement (CBA) or under agency administrative grievance procedure Grievance Procedures. Denial of a request to enter phased retirement or a request to return to regular employment may only be grieved if the position is a bargaining unit position and covered by the negotiated grievance procedure under the collective bargaining agreement (CBA). Decisions surrounding phased retirement are not considered "adverse actions" under 5 U.S.C. Chapter 75 and are not appealable to the Merit Systems Protection Board, to include but not limited to decisions to disapprove the employees request to return to regular full-time employment Retirement. A phased retiree who is not approved to return to full time status or able to obtain an extended agreement or is unable to transfer to a different agency by the expiration date of the phased retirement agreement will be considered to have elected full, immediate retirement and such separation will be considered voluntary, based on the written agreement IAW 5 CFR (b) and (T-0)

10 10 AFI JUNE 2017 Chapter 4 MENTORING IN PHASED RETIREMENT 4.1. Mentoring Requirement. Mentoring is an essential element of phased retirement intended to allow the transfer of knowledge and skills from a well-experienced employee to other employees who are less experienced. It is not limited to those employees who may assume the duties of the phased retiree upon regular retirement A minimum of 20 percent (i.e. 8 hours) of the employee s part-time work hours each pay period are to be spent performing mentoring activities Mentoring hours may be distributed over the bi-weekly pay period and are to be recorded in the appropriate time and attendance system The approving official is authorized to waive the requirement only in the event of an emergency or other unusual circumstances (including being called for active-duty, invocation of the Family Medical Leave Act (FMLA)) that would make it impractical for the phased retiree to fulfill the mentoring requirement The phased retiree is to develop a mentoring plan that identifies the mentee to be mentored, mentee objectives, activities for achieving objectives, and other supporting details The mentoring plan is subject to the supervisor s endorsement and the approving official s approval The employee is to carry out the mentoring requirement beginning the effective date on which the phased retirement commences The performance standards of phased retirees are to be modified in writing to include the mentoring activities Types of Mentoring. Mentors may perform different roles which include: Advisor: The mentor initiates communication and helps the mentee formulate career goals Coach: The mentor supports in identifying developmental needs, recommending training opportunities, and imparting skills and behaviors Facilitator: The mentor assists in finding resources for problem solving and career progression Advocate: The mentor recommends opportunities for projects allowing others to observe positive capabilities of the mentee Mentoring Expectations. For additional information, see AFMAN , Air Force Mentoring Program. A phased retiree serving as a mentor should: Exemplify Air Force Core Values Provide practical counsel by offering guidance, providing feedback, and acknowledging accomplishment.

11 AFI JUNE Support mentee s career planning and goal setting by using a developmental plan, such as My Vector Assist mentees in assessing institutional and occupational competencies to identify both strengths and areas for improvement. For additional information on leadership competencies, reference AFMAN , Institutional Competency Development and Management Share relevant knowledge, experience, and resources with mentee Identify and help mentee resolve potential issues encountered in development Facilitate opportunities for mentee to gain new experiences and build skills Performance Standards. Mentoring activities are to be clearly defined in the employee s performance standards. Performance standards describe how the requirements and expectations are to be evaluated. Performance standards are to be written at the Fully Successful level. The standards should include specific, measureable, achievable, relevant, and timely criteria, which provide the framework for developing effective results and expectations.

12 12 AFI JUNE 2017 Chapter 5 PHASED RETIREE WORK SCHEDULES 5.1. Hours of Duty. Phased retirees are permitted to work a maximum of forty (40) hours during a given bi-weekly pay period. Except as otherwise expressly provided in law or regulation, a phased retiree is treated like any other employee on a part-time tour of duty Work Schedule. The number of officially established hours per pay period to be worked by an employee in phased retirement status is equal to one-half the number of hours the phased retiree would have been scheduled to work had the phased retiree remained in a full-time work schedule and not elected to enter phased retirement status (i.e., forty (40) hours per pay period) With supervisory approval, the employee may participate in flexible or compressed work schedule program A phased retiree: Is not permitted to work intermittent pay periods Must have an officially established part-time work schedule. (T-0) Work time must equal forty (40) hours at the end of each bi-weekly pay period to include a minimum of eight (8) hours of mentoring activities (mandatory requirement) unless leave has been approved. (T-1) Phased retirees are subject to the Fair Labor Standards Act (FLSA). Thus, unless they are working an approved alternate work schedule, they are limited to working 8 hours per scheduled workday. Hours worked in excess of the officially established part-time work schedule are subject to overtime rules and restrictions as identified in paragraph Pay. The phased retiree receives half of their gross pay, which is subject to employee withholdings for FEHB, FEGLI, Federal Employees Dental and Vision Program (FEDVIP), Federal Long Term Care Insurance Program (FLTCIP), Thrift Savings Plan (TSP), Federal and State tax, Social Security and Medicare tax, and CSRS or FERS deductions as appropriate. The phased retiree also receives half of their retirement annuity from OPM Leave. The employee maintains annual and sick leave balances and does not receive a lump sum payment for annual leave upon transition to phased retirement Leave accrual is prorated at fifty (50) percent of the full-time earnings (i.e., four (4) hours of annual leave per pay period; two (2) hours of sick leave per pay period) Annual leave ceiling remains unchanged Accrues additional annual and sick leave on a prorated basis in emergency situations requiring the phased retiree to work excess hours The employee s sick leave balance is not used in the calculation of the phased retirement annuity. The sick leave balance is only utilized for service credit when the employee applies for full retirement benefits.

13 AFI JUNE Overtime and Compensatory Time. Phased retirees are generally restricted from working more than 40 hours in a bi-weekly pay period. However, the Approving Official may order or approve a phased retiree to perform hours of work in excess of their officially established schedule in rare and exceptional circumstances meeting ALL of the following conditions: The work is necessary to respond to an emergency posing a significant, immediate, and direct threat to life or property; The authorized agency official determines that no other qualified employee is available to perform the required work; The phased retiree is relieved from performing excess work as soon as reasonably possible (e.g., by management assignment of work to other employees); and, When an emergency situation can be anticipated in advance agency management should make advance plans to minimize any necessary excess work by the phased retiree Holidays. Phased retirees are subject to the same rules as part-time employees with regard to holidays. In general, they are entitled to a paid holiday if it falls on a scheduled workday but not for a holiday that falls on a scheduled non-workday.

14 14 AFI JUNE 2017 Chapter 6 EFFECT OF PHASED RETIREMENT 6.1. Performance and Conduct. A phased retiree is considered a part-time employee, has the same performance and conduct requirements as in regular employment, and retains the same due process rights. Removal prior to the end of the phased retiree s time limit agreement could occur due to budget restrictions, performance, or conduct issues under existing workforce authorities Health and Life Insurance Premiums. Phased retirees are considered full-time employees for the purpose of health (FEHB) and life (FEGLI) insurance benefits, premiums, and contributions (see 5 CFR (a)(1) and (a)(1) for FEHB premiums; 5 CFR (a)(2) and (a)(2) for FEGLI premiums). The normal rules governing health benefits premiums for part-time employees in 5 U.S.C. 8906(b)(3) do not apply. Phased retirement is not considered a qualifying life event for allowing benefit changes outside of open season Bargaining Unit Status. Phased retirees are subject to the rules under 5 U.S.C. Chapter 71. Since phased retirees convert from full-time to part-time status, bargaining unit coverage status depends on whether part-time employees are included or excluded from the local bargaining unit description Bargaining Obligations. Local collective bargaining obligations are to be fulfilled prior to implementation for bargaining unit employees Outside Employment. Phased retirees remain employees of the Air Force in accordance with part 2635 of Title 5, Code of Federal Regulations. The phased retiree is bound by ethics rules and any restrictions on outside employment Disability Retirement. Phased retirees may not apply for disability retirement after entering phased retirement Court Orders. Phased retirees are responsible for forwarding court orders to OPM. DANIEL R. SITTERLY, SES Acting Assistant Secretary (Manpower and Reserve Affairs)

15 AFI JUNE Attachment 1 GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION References Public Law United States Code 8336a 5 United States Code 8412a 5 United States Code Code of Federal Regulation Part Code of Federal Regulation Part Code of Federal Regulation Part Code of Federal Regulation Part Code of Federal Regulation Part Code of Federal Regulation Part Code of Federal Regulation Part Code of Federal Regulation Part Code of Federal Regulation Part Code of Federal Regulation Part Code of Federal Regulation Part 2635 DoD Directive Type Memorandum , 21 Jun 2016 AFDP 36-6, Civilian Career Field Management, 7 Mar 2012 AFPD 36-8, Employee Benefits and Entitlements and Work/Life Programs, 24 Dec 2014 AFI , Hours of Work, Holiday Observances, and Overtime, 25 Aug 2015 AFI , Absence and Leave, 8 Jul 2015 AFI , Civilian Senior Executive Management, 23 January 2012 AFMAN , Civilian Career Field Management and Development, 2 May 2016 AFMAN , Air Force Mentoring Program, 4 May 2017 AFMAN , Institutional Competency Development and Management, 25 Mar 2014 Adopted Forms AF Form 847, Recommendation for Change of Publication DD Form 3018, Phased Retirement Request and Agreement SF 2801, Civil Service Retirement System Application for Immediate Retirement SF 3107, Federal Employees Retirement System Application for Immediate Retirement

16 16 AFI JUNE 2017 SF 3116, Phased Employment/Phased Retirement Status Elections, Acronyms and Abbreviations AFI Air Force Instruction AFMAN Air Force Manual AFPC Air Force Personnel Center AFPD Air Force Policy Directive ART Air Reserve Technician BEST Benefits and Entitlement Service Team CBA Collective Bargaining Agreement C.F.R Code of Federal Regulations CSE Civilian Senior Executive CSRS Civil Service Retirement System DCIPS Defense Civilian Intelligence Personnel System DISES Defense Intelligence Senior Executive Service DISL Defense Intelligence Senior Level DTM Directive-Type Memorandum EBIS Employee Benefits Information System EEO Equal Employment Opportunity FEGLI Federal Employees Group Life Insurance FEHB Federal Employees Health Benefits FEDVIP Federal Employees Dental and Vision Program FERS Federal Employees Retirement System FLSA Fair Labor Standards Act FLTCIP Federal Long Term Care Insurance Program FMLA Family Medical Leave Act MCO Mission Critical Occupations MRA Minimum Retirement Age NGB National Guard Bureau OCONUS Outside the Continental United States OPM Office of Personnel Management OPR Office of Primary Responsibility RDS Records Disposition Schedule

17 AFI JUNE SES Senior Executive Service SF Standard Form SL Senior Level ST Scientific and Professional TSP Thrift Savings Plan U.S.C United States Code Terms Approving Official The lowest-level approving official designated by the agency head. Central Salary Account Manpower authorization for developmental purposes. Full Retirement Status A phased retiree who has ceased employment and is entitled, upon application, to a composite retirement annuity. Full Time An officially established recurring basic workweek consisting of 40 hours within the employee s administrative workweek or 80 hours per biweekly pay period for employees with a flexible or compressed work schedule. Mentoring A process that focuses specifically on providing guidance, direction, and career advice, which includes a wide range of activities that allow for the transfer of knowledge and skills from one employee to others. Mission Critical Occupations (MCO) Occupational series identified by the Department of Defense, the components and defense agencies as being paramount capabilities in supporting the Quadrennial Defense Review goals of defeating terrorist networks, defending the homeland in depth, shaping the choices of countries at strategic crossroads, and preventing the acquisition or use of weapons of mass destruction. MCOs are the focus of the Department of Defense s enterprise competency analysis, succession planning, and hiring and recruitment initiatives. The MCO listing undergoes constant review and revision to meet the changing threats. Phased Employment Less than full-time employment of a phased retiree. Phased Retiree A retirement-eligible FERS or CSRS employee who (1) has entered phased retirement status; and (2) has not entered full retirement. Phased Retirement Allows retirement-eligible employees to elect to convert to working on a part-time (50%) basis while receiving a portion of their annuity for the other portion (50%) of time they are no longer working. Phased Retirement Annuity The annuity payable before full retirement. Phased Retirement Period The period beginning on the date on which an individual becomes entitled to receive a phased retirement annuity and ending on the date on which the individual separates from phased retirement. Phased Retirement Status An employee concurrently employed in phased employment and eligible to receive a phased retirement annuity.

18 18 AFI JUNE 2017 Retirement Eligible Employee For the purposes of phased retirement only, a retirementeligible employee is an employee, who if separated from service, would meet the requirements under 5 U.S.C. 8336(a) and (b) for CSRS and 5 U.S.C. 8412(a) and (b) for FERS. Time Limit The length of time an employee may participate in phased retirement. Time Limit Agreement A written condition of approval whereby the agency and the employee mutually agree on a specified time limit the employee may work as a phased retiree. Working Percentage The percentage of full-time equivalent (FTE) employment an employee may work as a phased retiree. By regulation, the Director of OPM establishes this percentage.