Deferred annuity and VSIP


Q. I have eight years of federal service as a FERS employee and believe I qualify for a deferred annuity at age 62. Would I be eligible for a VSIP (if offered), and if I were to accept a VSIP to leave; would this affect my annuity beginning at age 62; and if so, how?

A. Yes, you’d be eligible for a VSIP. And you’d be eligible for a deferred annuity at age 62. The annuity would be calculated using the standard formula: 0.01 x your high-3 on the day you left x your years and full months of service on the day you left. As a deferred retiree, you wouldn’t be able to re-enroll in the Federal Employees Health Benefits or Federal Employees’ Group Life Insurance programs.


About Author

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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