Q. I am 56 1/2 years old with 27 years of federal service. How does this Voluntary Early Retirement Authority (VERA) actually work? I will not have 30 years of service until November 2018. If I were offered a VERA, does this mean that they will give me the additional three years and that would be how they would calculate my retirement amount?
A. No, it doesn’t. If you are eligible for a VERA, your annuity would be based on your actual length of creditable service when you retire. Because you are a FERS employee, the following formula would be used to compute your annuity: .01 x your high-3 x your years and full months of service. Since you have already reached your minimum retirement age of 56, you’d also be entitled to the special retirement supplement. Also, because you’d be retiring under a VERA, you wouldn’t be subject to the five-percent-per-year penalty for being under age 62.
