Q. If my agency offers me a buyout, what does it mean to me? I am 54 years old. I will reach my minimum retirement age on Jan. 19, 2016. I have 23½ years of service under FERS. My agency is going through a big reorganization. Would you explain to me what it means to my retirement if I’m offered either of them? Will I be able to retire with no penalty?
A. Because you already meet the age and service requirements — age 50 with 20 years of service — you could accept an early retirement offer and retire, and if you were offered a buyout, you could accept it and retire under the same terms. In either case, your annuity would be computed using the standard formula: .01 x your high-3 x your years and full months of service. Because you’d be taking early retirement, there wouldn’t be any age penalty. And you’d be eligible to receive the special retirement supplement when you reached your minimum retirement age, which would be 56.