VERA and one-time annuity reduction

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Q. I am CSRS with 33 years of service at age 52. I am considering a Voluntary Early Retirement Authority offer and understand the annuity is reduced 2 percent for each year under age 55. Is this a one-time annuity reduction at time of retirement, or is the reduction computed every year against the inflation-adjusted annuity?

A. It’s a one-time permanent reduction.

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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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