Pierce v. Clements Electrical Inc

**Pierce v. Clements Electrical Inc.: Federal Employee Loses Retirement Benefits Case** This case involved a federal employee who applied for retirement benefits under the Federal Employee Retirement System (FERS) but was denied by the Office of Personnel Management. The employee had previously received a refund of his retirement contributions when he left federal service, then later returned to government work and tried to claim retirement benefits. The Merit Systems Protection Board sided with the government and upheld the denial of retirement benefits. The board ruled that when the employee took a refund of his retirement deductions during his earlier departure from federal service, he gave up his rights to those retirement benefits permanently. Even though he returned to federal employment later, he could not reclaim the forfeited retirement credits. **What this means for workers:** Federal employees should carefully consider the long-term consequences before taking a refund of retirement contributions when leaving government service. Once you receive that refund, you lose those retirement credits forever, even if you return to federal work later. If you think you might come back to federal employment, it may be better to leave your retirement contributions in the system to preserve your benefits for the future.