Q: When I’m 61.5 years old with 13.5 years of service under FERS, I’d like to resign and defer my annuity until I’m 62, (January 2014). Will that avoid the 5 percent penalty? What happens to my sick leave based on the new system? Would I lose it because I resigned at age 61.5, or get credit toward retirement?
A: Because you would be 62 and have at least five years of service when you applied for a deferred retirement, you would avoid the age penalty. On the other hand, you would get no credit for your unused sick leave. Further, if you are currently enrolled in the Federal Employees Health Benefits program, you wouldn’t be able to re-enroll when your annuity begins.