Q. I am being involuntarily separated from Nonappropriated Fund service due to my position being abolished. I retained Federal Employees Retirement Service when I became an NAF employee. I am 55 years old with more than 10 years of creditable service and will be Minimum Retirement Age+10 eligible when I turn 56. Will I be penalized 5 percent for every year under the age of 62 if I apply for MRA+10 retirement? My retirement will be a result of being involuntarily separated. Will I be eligible for any Social Security benefits?
A. If you are separated before you reach your MRA, you would only be eligible for a deferred retirement when you reach age 62. If your separation is delayed until you reach your MRA, you could retire under the MRA+10 provision. However, your annuity would be reduced by 5 percent for every year you were under age 62, unless you delayed the receipt of your annuity to a later date to reduce or eliminate the age penalty. In neither case would you be eligible for the special retirement supplement, which approximates the Social Security benefit you earned while a FERS employee. The earliest you would be eligible for a Social Security benefit is when you reach age 62.
2 Comments
Hoping this email address is still valid for posing questions related to
transition between GS and NAF position
I am considering taking potential new position as NAF, after over 20+years as
GS employee. Current plans are to work only another 5-6 years before retirement.
Need some expert advice on differences in retirement benefits and pay, and
what , if any benefits or services I might lose if I make this switch this
late in my federal service
Sincerely appreciate your professional feedback and advice.
Thank you
Unfortunately, we don’t know anything about the NAF system and what you might gain or lose by moving to it.