Involuntary termination annuity penalties


Q. I have been working as a term federal employee paid by a research grant and covered by FERS. The funding for my position may end soon, forcing me to be involuntarily terminated from my position at age 58 with 29 years towards retirement. I understand that if I quit voluntarily and took an immediate annuity it would be reduced because I am under age 62. However, if I were permanent and were involuntarily separated I would not see this reduction. Since I am term and separated involuntarily, will I have a reduction in an immediate annuity?

A. If you are involuntarily separated, you’d be entitled to a penalty-free discontinued service retirement.


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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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