FEHB coverage after retirement before age 59


Q. Will I still be able to keep my FEHB coverage at the employee rate with 20 years of service under FERS if I leave federal service at age 59? Do I have to wait until age 62 to get my full annuity with 20 years of service under FERS ?

A. You have three choices. 1) Retire under the MRA+10 provision and carry your FEHB coverage into retirement. However, your annuity would be reduced by 5 percent for every year you are under age 62 (that’s 5/12 percent per month). 2) Retire under the MRA+10 provision and postpone the receipt of your annuity to reduce or eliminate the age penalty. If you did that, your FEHB coverage would end after 31 days and you’d be offered an opportunity to continue that coverage for up to 18 months at your own expense. When you finally claimed your annuity, you’d be able to re-enroll. 3). Resign from the government and, because you have at least 20 years of service, apply for a deferred annuity at age 60. However, you wouldn’t be able to re-enroll.


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  1. How about Choice 4: Work another year, retire at 60 with more than 20 years and carry your full FEHB into retirement ? Seems well worth sticking it out, if you can, for another year. I’m sure Daryl Issa and Eric Cantor won’t have time to take away too many more benefits before then …

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