Q: I am considering retirement after I have 30 years of service in two years. I will be 54 then. Can I begin drawing an annuity when I reach MRA (56) without penalty? Is there anyway to sustain FEHB coverage? Will I receive COLAs in the future under this scenario?
A: You can’t retire at age 54. What you could do is resign from the government and apply for an age penalty-free deferred annuity at age 56. You would be entitled to any cost-of-living-adjustment made after you reach age 62. Note: You would not be able to re-enroll in the Federal Employees Health Benefits program. No one who retires on a deferred annuity can do that.