Q: I am a 39-year-old federal employee. I have nine years of Federal Employees Retirement System-covered federal service. I also bought back eight years of Army service time two years ago. I am thinking of resigning my position and starting a small business. Would it benefit me to wait three years and reach 20 years of creditable service? And if so, what benefits will I be eligible for at my minimum retirement age?
A: You wouldn’t be eligible for any benefits when you reached your minimum retirement age. With fewer than 20 years of service, you’d be eligible for a deferred annuity at age 62. With at least 20, you’d be eligible for the annuity at age 60.