Rep. Tom Davis (R-Va.), ranking member on the House Committee on Oversight and Government Reform, yesterdsay introduced legislation (HR 3579) that would allow federal agencies to rehire federal retirees on a temporary basis to help alleviate workforce shortages within the federal government.

Davis’ legislation, The Re-Employment of Annuitants Act of 2007, would allow rehires to assist with short-term projects, fill critical skills gaps and train the next generation of the federal workforce without losing their annuity benefits.

Under current law, if retired federal employees return to work as part-timers, they either must suspend receiving their annuities or receive a salary reduced by the amount they would’ve received from the annuity – known as an offset. The Office of Personnel Management, which requested this legislation, already makes exception to this rule for positions it considers exceptionally difficult to fill.

Under this legislation, agencies could waive this offset requirement for federal annuitants who accept part-time positions. They would receive both salary and annuity payments during their time of service but would receive no additional retirement benefits based on their service.