Retired employees would be able to return to government work without a pay cut in more situations than currently allowed, under an Office of Personnel Management proposal. Salaries for retirees who rejoin the federal work force typically are reduced by the amount of their annuities to prevent them from earning both a full salary and full annuity. However, OPM currently can waive this so-called dual compensation requirement on a case-by-case basis or allow agencies to waive the requirement when they need to hire retirees to meet emergencies that pose “an immediate or direct threat to life or property or emergencies resulting from other unusual circumstances.” Federal Times

Federal Register Notice (excerpts)

SUMMARY: The Office of Personnel Management (OPM) is issuing proposed regulations to amend the criteria under which OPM may grant dual compensation (salary off-set) waivers on a case-by-case basis, or delegate waiver authority to agencies. This amendment clarifies that OPM may grant or delegate to agencies the authority to grant such waivers in situations resulting from emergencies posing an immediate and direct threat to life or property or situations resulting from unusual circumstances that do not involve an emergency. The proposed changes will make it easier for agencies to reemploy needed individuals when faced with unusual circumstances.

DATES: We will consider comments received on or before September 19, 2006.

Sec.  553.203  Status of individuals serving without reduction.

 Reemployed civilian annuitants. Annuitants reemployed with full salary and annuity under an exception granted in accordance with this part are not considered employees for purposes of subchapter III of chapter 83 or chapter 84 of title 5, United States Code. They may not elect to have retirement contributions withheld from their pay; they may not use any employment for which an exception is granted as a basis for a supplemental or recomputed annuity; and they may not participate in the Thrift Savings Plan