Annuity reduction


Q. I am 55 and under FERS. My minimum retirement age is 56, and I will be eligible for retirement June 22.  About the penalty of 5 percent for each year under 62: Since I am six years from age 62, does this mean my annuity will be reduced 30 percent from day one of retirement? Or does it mean it will be reduced 5 percent annually for each of the years between 56 and 62?

A. The reduction is 5 percent for every year (5/12 percent per month) that you are under age 62 when you retire. The longer you wait to start your annuity, the smaller the reduction would be.


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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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