Early retirement penalty


Q. I am under FERS and will be 61 years old in July 2016. I will have 25 years and 4 months of service under my belt. Will I still lose 5 percent for being under 62 years of age if I retire in July 2016?

A. No, you won’t. Because you are at least 60 years old and have a least 20 years of service, you’ll be entitled to an immediate, unreduced annuity.


About Author

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


  1. blanca stella hernandez on

    I been having health problems since august 2015, at this moment have financial problems too, I am not reciving imcome at all since February 2016, I feel disable, because I just to do everything and now I do not. so I like to see if I can get retired.

    • How old are you and how many years of service you have? You say that you haven’t been receiving any income since February 2016. Does this mean that you are on leave without pay (LWOP) or that you no longer work for the government?

    • I just saw your follow-up e-mail. Since you are age 60, you could retire on an immediate, unreduced annuity if you had at least 20 years of service. If you had fewer than 20 but at least 10 years of service, you could retire under the MRA+10 provision. However your annuity would be reduced by 5 percent for every year you were under age 62. Note: You can also apply for disability retirement, which would be more beneficial financially, if approved. You personnel office can help you fill out the necessary forms.

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