Q. Current age: 56
Entered U.S. Navy active duty: May 1978
Active-duty military time: 11 years, four months
Retired reservist after 26 years as an O-5
Entered civil service: November 1997
Current paygrade: GS-9, Step 8
Received a $30,000 severance pay when released from active duty in January 1989
Points accumulated, active and reserve, for retirement: 5,245
What do I need to do to retire at the end of this year? I know you can’t tell me what I should do, but if you could give me guidance as to what I need to do so I can make an informed decision I would greatly appreciate it.
A. Here’s the deal. Because you have already reached your minimum retirement age and have at least 10 years of service, you can retire under the MRA+10 provision. If you do, your annuity would be calculated using the following formula: 0.01 x your highest three consecutive years of average salary (your high-3) x your years and full months of creditable service. However, that annuity would be reduced by 5/12 percent for every month you were under than age 62. You could reduce or eliminate that penalty by postponing the receipt of your annuity to a later date. Now all you have to do is put pencil to paper and see what your annuity would be under different scenarios.
