Deferred annuity


Q. I worked as a full-time carrier from 1988-1996. I recently heard that I am vested and will receive some money when I’m in my 60s. Is that true? I also had almost 8 years of sick leave saved up. Does that count for anything? I know that some federal agencies receive medical insurance if they paid for it for 5 years — Is the USPS one of those agencies?

A. If you didn’t get a refund of your retirement contributions when you left, you’d be entitled to a deferred annuity at age 62. It would be calculated using the following formula: .01 x your highest three consecutive years of average basic pay x your years and full months of service. Sick leave is never included in the computation of a deferred annuity.

Employees who have been enrolled in the Federal Employees Health Benefits program for the 5 consecutive years before they retire on an immediate annuity are eligible to carry that coverage into retirement. No one who retires on a deferred annuity can re-enroll in that program.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

Leave A Reply