Discontinued service retirement


Q. What is discontinued service retirement? Will you keep your health benefits? As of March 7, 2017, I reached my minimum retirement age of 56. I have 24 years of service.

A. Because you are already eligible to retire on a immediate annuity under the MRA+10 provision (minimum retirement age with at least 10 years of creditable service), the discontinued service retirement option doesn’t apply to you. If you retire now, your annuity would be reduced by 5 percent for every year (five-twelfths of 1 percent per month) that you are under age 60. You could reduce or eliminate that penalty by delaying the receipt of your annuity to a later date. If you retire now, your FEHB and FEGLI coverage would continue. If you delay the receipt of your annuity, you could reenroll in either or both programs when your annuity begins.


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. What about if you are on disability retirement age 55 /27 years service. Then later elect OWCP, and get terminated from OWCP and elect to get back on OPM are you able for DSR instead of disability retirement? Now moving forward if you are 56,56 are in between the age of 62.

  2. Elaine Lumsden on

    If you are collecting an OPM disability retirement and are also eligible for OWCP, you cannot collect both at the same time, with the exception of a scheduled award, so you must elect one or the other. If you elect to go to OWCP, your OPM retirement will remain in suspend status, meaning if you lose OWCP or if you elect to, you can return to OPM disability retirement. So, to answer your specific question, if you lose your OWCP benefit, you will go back to OPM disability. You are not eligible for a discontinued retirement as you have not been removed from the OPM rolls because of restoration of earnings capacity or being medically recovered. For more specific information on this topic, please see the following chapter in the CSRS FERS Handbook. https://www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c102.pdf?nocache=1

  3. Elaine Lumsden on

    Although you have changed the original response, this answer is still not correct. You CAN be eligible for a Discontinued Service Retirement if you at least age 50 with 20 or more years of service or any age with 25 or more years of service if you lose your job for reasons other misconduct or cause.

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