Q. Are there pay differences in FERS retirement after 20 years versus retiring at 18 years?
A. The simple answer: In most cases, the difference will be 2 percent because the standard formula is .01 x your high-3 x your years of service. However, the simple answer leaves too much out. You are eligible to retire only when you meet the age and service requirements for an immediate unreduced annuity, which are: 62 with 5 years of service, or 60 with 20, or at your minimum retirement age (MRA) with 30 You can also retire at your MRA with at least 10 but fewer than 30 years of service. However, your annuity would be reduced by 5 percent for every year you were under age 62.
One last wrinkle: If you retire at age 62 with at least 20 years of service, the first multiplier in the annuity formula will be increased to 1.1 percent.