Browsing: Deferred annuity

The countdown to the end of the year is on. Some federal employees considering retirement may be eligible for either a postponed or deferred annuity. Postponed annuity A postponed annuity is an option for FERS employees who have reached their minimum retirement age and have at least 10 years of creditable service. However, if you retire under the MRA + 10 provision, there’s a hefty financial penalty. If you have fewer than 20 years of service, that penalty is 5 percent for every year (5/12 of 1 percent per month) that you are under age 62. If you have at…

Q. I am hoping to leave service at 59 years old with 25 years of service. I was planning to postpone my annuity start date until I was 60. My understanding is if I postpone and do not defer my annuity, I could resume as if I just left service. I would be entitled to health insurance and my supplement until age 62; if I deferred I would be ineligible for either. I believe the words “postpone” and “defer” are not the same, though are similar in meaning. Do I need to meet my minimum retirement age to qualify for a postponed retirement?

Q. I am currently overseas on an extended family vacation. I’ll be turning 62 years old at the end of this month. I left the federal service as a law enforcement officer in 2012 with 6 ½ years of creditable service. I did not receive a refund of my retirement contributions when I quit from my federal job. Can you give me an approximate annuity based on my service? What do I have to do to apply for it?

Q. My husband worked 16 years for the federal government and then left. He also had four years of active-duty service for which he wants to make a deposit. He plans on getting his retirement at 62. He says he can get all his benefits back, including medical, life insurance and a retirement annuity. Is that right?

Q. I was told to separate and postpone my retirement to avoid the penalty. I am 58 years old, and will have 16 years at the Defense Department. How does the annuity work? Is it an annual payment or monthly? What is the difference between postpone and defer? Do I submit my intentions to the HRC CPAC when I submit for separation?