MRA+10

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Q. I’m a FERS employee and plan to retire at minimum retirement age, which is 56. However, I’ll have fewer than 30 years of service. Is the 5 percent per year penalty based on each year short of 30 years, or is it based on each year short of age 62?

A. The MRA+10 provision allows FERS employees to retire at their minimum retirement age with fewer than 30 years of service. If you retire under that provision, your annuity will be reduced by 5 percent for every year (or 5/12 of 1 percent per month) that you are under age 62.

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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.

10 Comments

    • The 5 percent per year penalty continues to reduce by 5/12ths of 1 percent per month until you reach age 62, unless you have at least 20 years of service. If you do, then the penalty ends at age 60.

      • I believe if you postpone you could avoid the penalty. I’m not sure about eligibility for FEHB in that case, I would check on that.

        • Any FERS employee who retires under the MRA+10 provision and postpones the receipt of his annuity to a later date can reenroll in the FEHB program as long as he was covered by the program for the 5 consecutive years before he retired or from his first opportunity to enroll.

          • No. As I wrote on October 22, “The 5 percent per year penalty continues to reduce by 5/12ths of 1 percent per month until you reach age 62, unless you have at least 20 years of service. If you do, then the penalty ends at age 60.”

        • As I wrote on October 22, “The 5 percent per year penalty continues to reduce by 5/12ths of 1 percent per month until you reach age 62, unless you have at least 20 years of service. If you do, then the penalty ends at age 60.”

          • Reg, I think what some people are confused about is if the penalty, once applied, continues for life or if it gets restored back to the full non-reduced level of the annuity start at age 60 or 62?

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