Annuity after retiring at MRA+10


Q. I worked for the Department of Defense as a civilian physician for 16 years and then transferred to the Veterans Health Administration. I understand physician comparability allowance is part of basic pay for retirement for VHA. So, if I worked for the VHA for two years and then retired because I am at minimum retirement age plus 10, how would my annuity be calculated?

A. Your annuity would be calculated using the following formula: .01 x your highest three consecutive years of basic pay x your years and full months of service. However, because you would be retiring under the MRA+10 provision, your annuity would be reduced by 5 percent for every year (5/12 percent per month) that you were under age 62. You could retire and postpone the receipt of your annuity to reduce or eliminate that penalty.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

Leave A Reply