Change in Work Schedule from Full-Time to Part-Time

Effect on Benefits

This fact sheet will discuss the impact of your work schedule on your Federal benefits. At the end of the document is a chart reflecting an example of a full-time work schedule as compared to a part time work schedule. If you have any questions about this information, please contact your assigned Benefits Specialist.

Topic Details
How do I initiate a schedule change? To change your work hours, contact your supervisor or Administrative Officer (AO).
Retirement Contributions If you're under the Civil Service Retirement System (CSRS) or Federal Employees’ Retirement System (FERS) and shift to part-time, your retirement plan remains active. The percentage of your pay that goes into the retirement system won't change. But because you'll be earning less due to the reduced hours, the actual dollar amount you contribute will also be less.
Retirement Eligibility Whether you work part-time or full-time, your service counts equally towards retirement eligibility.

Retirement Benefit

Calculation

Your retirement benefits are calculated based on: 

1) How long you’ve been working in a creditable Federal (civilian and/or military) job, and 

2) Your highest salary over any three consecutive years. 


For part-time work, we adjust the calculation by comparing your actual work hours to what they would’ve been on a full-time schedule. We then determine your highest average salary as if you’d been working full-time, to be sure your part-time work counts fairly towards retirement.
Thrift Savings Plan (TSP)

Working less means your pay—and therefore your TSP contributions—decrease. For FERS participants, agency contributions continue but adjust according to your new salary. 


For those in the FERS plan, the agency will still contribute to your retirement. You'll get an automatic 1% contribution plus up to 4% extra if you match it. If your salary goes down, these contributions will adjust to match your new, lower salary.
Social Security Your Social Security contribution rate doesn't change (6.2% of your earnings, up to the IRS maximum). So, if you earn less because you're working fewer hours, you'll pay less into Social Security. But when it comes to qualifying for benefits, working part-time counts just the same as full-time. Visit www.ssa.gov to learn more.
Health Insurance - FEHB Your FEHB coverage continues with part-time status, but the government's contribution is adjusted, potentially increasing your premium share. You have 60 days to make changes after switching to part-time.
Life Insurance - FEGLI

FEGLI offers several types of life insurance: 
 

  • Basic Life: This is based on your yearly salary, rounded up to the nearest $1,000 plus $2,000. It costs $0.15 every two weeks for each $1,000 of coverage. 
  • Option A - Standard: Provides $10,000 coverage. The cost varies by age. 
  • Option B - Additional: This allows for coverage of 1 to 5 times your salary. Costs depend on your age and the coverage level.

  • Option C - Family: Covers your spouse and dependent children under 22. You can choose coverage levels from 1 to 5 times, with $5,000 for your spouse and $2,500 for each child per level. The cost varies by age. 

    If you switch from full-time to part-time, Basic Life and Option B costs will drop since they're based on salary, which will be lower. Costs for Option A and Option C won't change, as these are fixed amounts. For more details on costs, check the OPM website.
Long Term Care – FLTCIP Premium deductions continue from your paycheck. If your reduced pay doesn't cover the premium, you must change your payment method by calling the LTC Partners at 1-800-582-3337 or by completing a Billing Change Form.

Dental and Vision –

FEDVIP

 Premium deductions continue. If reduced pay doesn't cover premiums, direct payment to BENEFEDS is required. For more information, call 1-877-888-3337 or visit the BENEFEDS billing and payments website.

Flexible Spending Account

- FSA

 Contributions continue unless they exceed your net pay, leading to account termination. The account can be reactivated if your pay increases within the claim year. For more information, call 1-877-888-3337.
Leave

The amount you get is adjusted to match your schedule: 
 

  • Sick Leave:
    • 1 hour for every 20 hours worked. 
  • Annual Leave (Vacation):
    • If you've worked less than 3 years, 1 hour for every 20 hours worked.
    • If you've worked between 3 and 15 years, 1 hour for every 13 hours worked.
    • If you've worked more than 15 years, 1 hour for every 10 hours worked.

Example

The following example reflects an employee who:

  • Earns $10.00 per hour;
  • Is age 52;
  • Has 4 years of service; and
  • Changes from full-time (40 hours per week) to part-time (20 hours per week).
Benefit Full Time Part Time
Bi-Weekly Base Pay $800.00 $400.00
Retirement (CSRS) 56.00 28.00
Retirement (FERS) 6.40 3.20
TSP (5% employee contribution) 40.00 20.00
    1% Agency automatic 8.00 4.00
    4% Agency matching 32.00 16.00
Social Security (OASDI) 49.60 24.80
Health Insurance (BC/BS-105) 112.88 251.42
Life Insurance - Basic – value/cost $23,000/3.45 $13,000/1.95
    Option A – value/cost $10,000/1.40 Same
    Option BX2 – value/cost $42,000/5.88 $22,000/3.08
    Option CX1 – value/cost $5,000, 2,500/.90 Same
Leave – Annual Accrual 6 hours 3 hours
    Sick Accrual 4 hours 2 hours

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