This question already has an answer here:
Will ex-moderators lose their moderation tools, or will they still have their moderation tools?
If a moderator steps down from moderation (voluntarily or due to inactivity), they will no longer be moderators and will not have the moderator tools available to them.
Kinda obvious, I'd think.
Once moderators are not anymore moderators, they have access only to the moderation tools that are allowed from their reputation, but not the full moderation tools moderators have.
For example, if a moderator is a 20K user, once he is not anymore a moderator he can still see the flags raised from other users, except when a custom reason is entered; he can still protect questions, or vote to delete questions, but he cannot anymore delete a question with a single vote, or close a question even if less than five users voted to close it.