Q. I plan to retire at age 58 with 22 years of service. My human resources department is penalizing me 20 percent, or 5 percent for each year under 62. They are quoting me information from a 1998 Federal Retirement Handbook.
The gentlemen who taught the retirement seminar that I attended in June 2011 tell me that I should only be penalized 10 percent. That is 5 percent for each year under 60 with over 20 years of service. I think 10 percent of my future paycheck is too much to forfeit.
Who is correct, please?
A. Your agency HR department is right. Either the person who taught the retirement seminar misspoke or you misheard him. What he may have said is that the reduction is 5 percent for each year you are under age 62 unless you have 20 years of service and retire at age 60 or later.