Discontinued service retirement and VSIP


Q. I work for the Defense Department with 16 years of service. If the rumored next round of Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay occurs (and I should be 57 by then), can I take the VSIP, not pull my FERS retirement contributions and apply for the discontinued service retirement at 62? If yes, does my sick leave still count for calculating the retirement amount? Is giving up the DSR a requirement for VSIP?

A. Accepting a VSIP doesn’t alter your ability to receive a discontinued service retirement. If you just resigned and left your money in the retirement fund, you would only be eligible for a deferred retirement at age 62. Further, you wouldn’t get any credit for your unused sick leave.


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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 fedexperts@federaltimes.com.

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