Retirement rules

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Q. I was informed by my local human resources and retirement benefits representative that under FERS, with 30 years of credible service, I am eligible for retirement at any age (I am age 50, with 20 credible years of service) without reduction in annuity payments. Does this seem correct?

A. It isn’t correct. To retire on an immediate, unreduced annuity, you would need to meet one of the following combinations of age and service:

  • Age 62 with 5 years of service.
  • Age 60 with 20 years of service.
  • At your minimum retirement age (MRA) with 30 years of service.

You could also retire at your MRA with at least 10 years of service; however, you annuity would be reduced by 5 percent for every year you were under age 62.

The only time you could retire at age 50 with 20 years of service (or at any age with at least 25 years) would be if your agency offered you that opportunity under the Voluntary Early Retirement Authority or with a Voluntary Separation Incentive Payment.

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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.

6 Comments

  1. How do you figure the annunity integritiy provision for CBP officers retiring under FERS, who came on the job @ 60 years of age. First year & a half on the job unavailable for overtime due to: pre & post academy training, Officers & Spanish academies, & light due assignment due to injury.

    • Because your question is so detailed and case specific, your agency personnel office is the only place you can go to get an answer.

  2. Mark Armstrong on

    Hi Reg, Are there any issues surrounding retiring right on my 65th birthday? It happens to fall on the last day of the month I planned to retire…April 30th?

    • Retiring on the last day of a month means that you’ll be on the annuity roll the following day, which is a good thing. However, unless the last day of the month is the end of a pay period, you won;t get any credit for any annual or sick leave you would have earned during those days before you retire.

  3. Luis Villalobos on

    Reg, On the above reply, ” However, unless the last day of the month is the end of a pay period, you won;t get any credit for any annual or sick leave you would have earned during those days before you retire.” Do you mean to say that if I retire on May 31 (Friday) and Saturday is the end of the pay period, I will not het any annual or sick leave accrued during this my last pay period?

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