Early retirement clarification

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Q. I plan to retire early at 60 years old, and worked for VA medical center for 25 years by that time. Do I have to pay a five percent penalty each year before age 62? Is the five percent penalty deducted every year only? 

A. You wouldn’t be retiring early. FERS employees can retire at age 60 with 20 years of service and receive an immediate, penalty-free annuity.

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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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