MRA+10 and early-out penalty


Q. I’m planning to retire under the FERS MRA+10 provisions at age 59, with 27 years of continuous federal service. I have the option to take an immediate annuity or to postpone receipt of my annuity until age 60 to avoid part of the age reduction penalty for early retirement: 5 percent per year for each year under age 62. Do I understand the following alternatives correctly? By taking the immediate annuity at age 59, I would be penalized 15 percent, but only for one year, until I turn 60. If I postpone until age 60, there would be no penalty to my annuity.

Also, if I take the immediate annuity, I think I qualify for the special retirement supplement from the date of my early retirement until I turn 62. However, if I postpone my annuity until age 60, would I still receive the SRS for those two years between ages 60 and 62? (Note: Continuation of the Federal Employees Health Benefits program is not a concern, as I’m covered under the family plan of my spouse, also a federal employee.)

A. If you retire under the MRA+10 provision, there will be a 5 percent penalty for every year (5/12 percent per month) that you are under age 62. Postponing its receipt will reduce or eliminate that penalty. The age 60 with 20 years of service situation you referred to applies only if you retire at age 60 with 20 years of service or if you have left government with 20 years of service before you were eligible to retire and applied for a deferred annuity at age 60. Note: No one who retires under the MRA+10 provision is eligible to receive the special retirement supplement.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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