Q. I have 26 years of federal service under FERS. I am 51 years old. I would like to leave federal government. Am I eligible to apply for a deferred retirement? If so, how is my penalty calculated?
A. Because you have at least 20 years of service, you could resign and apply for a deferred retirement at age 60. Your annuity would be calculated using the standard formula: 0.01 x your high-3 x your years and full months of service. Your high-3 would be determined by your highest three consecutive years of average salary on the day you left.