Q. I have 14 years as a FERS employee and planning to retire under MRA+10. I am 58 years, 7 months old. I have been advised by the human resources staffs that there is a 5 percent reduction in annuity benefit for each full month (5 percent per year) that I’m under age 62 on the date my annuity begins. Is the 5 percent reduction permanent after I reach age 63?
A. Yes, the reduction is permanent if your annuity begins immediately following your retirement. However, when you retire you can moderate or eliminate its affect by postponing the receipt of your annuity to a later date. The closer that date is to age 62, the smaller the impact will be.
