Early retirement and annuity

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Q. If I retire at 58 with 20 years of service, what exactly do I lose? Should I wait at least until 60, or 62 or 65?

A. You would be retiring under the MRA+10 provision. As a result, your annuity would be reduced by 5 percent per year (5/12ths of 1 percent per year) that you were under age 62. You could reduce or eliminate that penalty by postponing the receipt of your annuity to a later date. If you did delay it and were covered by the FEHB and/or FEGLI program for the five consecutive years before you left, you could re-enroll when your annuity begins.

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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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