Q: If an employee is any age with 25 years of service or age 50 with 20 years of service, will the employee be penalized in the case of an early-out retirement if OPM has determined that the agency is undergoing a major reorganization, reduction in force, or transfer of function?
A: Those age and service combination would only be available in the circumstances you mentioned and you were one of those to whom an offer of early retirement was made. If you were a CSRS employee, you annuity would be reduced by 2 percent for every year you were younger than 55. There wouldn’t be any age penalty if you were a FERS employee.
