Leaving federal service early


Q. I am 51 years old and have 16 years of 6c time in federal law enforcement. I am also a veteran and bought back 11 years of active-duty time, bringing my total federal time to 27 years. I am considering leaving the government for a position with a private company. I want to make sure I understand what I would give up before I leave, and it is my understanding that my benefits would be based on a straight 1.0 percent per year vice 1.7 percent since I will not have completed 20 years of 6c time. I am not concerned about Social Security since I would be working anyway. Also, I will need to defer my benefits until age 60, with 26 years of service. I have also retired from the reserves, so I am not concerned about health insurance. So, by my estimates, I would be giving up 45 percent for 26 percent. Do I have this correct, or am I missing something?

A. Yes, you are correct. Note: If you had 27 years of service, you’d be giving up an annuity worth 41 percent (0.17 x your high-3 x 20 years of service = 34 percent) + 0.01 x your high-3 x 7 years of service = 7 percent) for one worth 27 percent (0.01 x your high-3 x 27 years of service = 27 percent).


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