Early out penalties


Q: Two questions about a 51-year-old Federal Employees Retirement System employee of the U.S. Postal Service who is offered an early retirement: 1) Is there any deduction/penalty for age years below 62? 2) Is that employee eligible for the annuity supplement immediately? If not, does that benefit ever kick in?

A: If you retire under the Voluntary Early Retirement Authority, you won’t be subject to the age reduction penalty. And you’ll be eligible to receive the special retirement supplement when you reach your minimum retirement age. Since you were born between 1953 and 1964, your MRA will be 56.

— Reg Jones


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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