Restrictions for Retired Military Personnel and Reservists
SIMPLIFIED RULE: Foreign Employment - Unless you receive prior authorization
from your Service Secretary and the Secretary of State, you may forfeit your military pay during
the time you perform services for a foreign government.
RULE: The U.S. Constitution prohibits retired military personnel and
reservists from receiving pay from
foreign governments without Congressional authorization. This can extend to receipt
of pay from a U.S. contractor or subcontractor for providing services to a foreign
government. In 37 U.S.C. 908, Congress authorizes the Secretary of State and Secretary of the
appropriate Military Department to approve such receipt of pay. Each military service has
implementing directives. Retired personnel and reservists who violate this Constitutional
proscription may forfeit pay equal in amount to their foreign pay.
Employment By DoD: To avoid the appearance of favoritism, 5 U.S.C. 3326
prohibits the appointment of retired military personnel to civil service positions (including a
non-appropriated fund activity) in any DoD component for 6 months after retirement. (This restriction has been temporarily waived during the current national emergency
following the attacks of 9/11).
The Secretary concerned may waive this prohibition. However, DoD Directive 1402.1
requires the Secretary concerned to conduct intensive external recruitment before granting the
waiver.
