Postponing, deferring and unused sick leave

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Q. I intend to retire from government civilian service at age 60 under MRA + 10. At the time of my retirement, I will have 15 years of service. Accordingly, as I understand it, I will be eligible to defer or postpone my retirement annuity until age 62, thereby bypassing the age reduction penalty. Would I lose any of my accumulated sick hours (currently 1,200 hours) under either the deferred or postponed retirement programs?

A. You wouldn’t get any credit for your unused sick leave if you resigned and later apply for a deferred annuity. You would get credit for your unused sick leave if you retired and postponed the receipt of your annuity to a later date.

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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.

3 Comments

  1. Bret Stoneking on

    I’m in a simliar position. I’m eligible for MRA+10, right now, at age 60. I plan to leave at age 61.

    So you’ve got me confused now… in this answer you say “RETIRE and POSTPONE”, while in another one:

    A: Your agency is correct. Just as they said, you’ll have to resign and apply for a postponed retirement six months before your 62nd birthday. You’ll find the Application for Deferred or Postponed Retirement online…”

    You say RESIGN. So which is it?

    Do I fill out the form and send it in before my 61st birthday(Dec 19) so that my retirement date (when I walk out of here) is 3 Jan 2020 but my postpone annuity date is 1 Dec 2020…. or do I just tell everyone goodbye (or whatever happens when you just resign) and sit on the form for 10 months? The only thing I’m trying to do is eliminate the under 62 reduction and re-start my FEGLI. If I resign, doesn’t that kill my sick leave for annuity calculations?

    • If someone leaves government before being eligible to retire on an immediate annuity and has at least 5 years of creditable service, he can apply for a deferred annuity when he reaches the right age t do so. If he is already eligible for an immediate annuity but wants to wait before applying for that benefit, for example, under the MRA+10 provision, he can postpone the receipt of that annuity to a later date.

    • One more thing. If you are eligible for a deferred annuity, you can simply resign and apply for that benefit at a later date. Deferred annuitants aren’t eligible to reenroll in either the FEHB or FEGLI programs, nor will their unused sick leave be used in their annuity calculation.

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