Discontinued service retirement and annuity


Q: If a 56-year-old Federal Employees Retirement System employee with 22 years of creditable service is involuntarily separated under a discontinued service retirement and takes the immediate annuity, does the annuity reduction of 2 percent per year for every year under age 62 apply? Does the employee also immediately qualify for the FERS annuity supplement?

A: If you take a discontinued service retirement, you won’t be penalized 5 percent (not 2 percent) for every year you are under age 62. Further, because you have reached your minimum retirement age, you will be eligible to receive the special retirement supplement.


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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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