VERA/VSIP and annuity reduction


Q. I acquired 30 years of service in May and will reach my minimum retirement age in November. If I accept a Voluntary Early Retirement Authority or Voluntary Separation Incentive Pay prior to my MRA, I understand I will not receive the special retirement supplement until I reach my MRA. What about the 5 percent reduction per year prior to age 62? My Federal Employees Health Benefits will be fine as I’ve been enrolled all along, correct?

A. You are correct. If you accept a VERA (with or without a VSIP), you won’t be eligible for the special retirement supplement until you reach your MRA. The good news is that by accepting a VERA, you won’t be subject to the 5 percent-per-year reduction in your annuity. Further, if you’ve been enrolled in the FEHB program for the five consecutive years before you retire, you can carry that coverage into retirement.


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

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