Q. I am a 51-year-old Defense Department employee with 13 years of continuous service under FERS and am considering relocating out-of-state and working in the private sector. Since my MRA is 56, I am not eligible for the optional (voluntary) retirement or MRA+10. My plan is to apply for a deferred annuity and leave my FERS retirement untouched after separation to avoid benefit reductions. However, I plan on returning to federal service.
Having recently attended the FERS midcareer retirement planning workshop, I am aware of the pros and cons of each retirement option.
More specifically, under MRA+10, FEHB and FEGLI are terminated upon separation and can be reinstated when the postponed annuity begins; however, under the deferred retirement option, FEHB and FEGLI are not reinstated.
My questions are: 1. If I return to federal service at age 56, is there a minimum duration I need to work before I can retire under the MRA+10 option? 2. Once I return to federal service, will my contribution to FERS remain at 0.8 percent? (I realize employee contributions to FERS may be increased based on recent proposals in D.C.) 3. Is there any other scenario where, upon returning to federal service, I would not simply be picking up where I left off?
A. 1. There is no minimum duration period. However, if you failed to provide a reasonable return on your employer’s efforts to hire you, you would be guilty of bad faith. 2. Because you had at least five years of service before you left, you would continue to have retirement deductions taken at the .8 percent level. 3. No.
