Browsing: Early retirement

Q. My agency was downsizing, so I accepted an early retirement offer at age 50. I was covered by CSRS Offset. When I turn age 62, do I have to apply for a Social Security benefit? A. No, you don’t have to apply for a Social Security benefit. However, whether you do or don’t, at age 62 your CSRS annuity will automatically be offset (reduced) by the amount of Social Security benefit you earned while covered by CSRS Offset.

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…

Q. I am 46 and have 25½ years of service. If I accept an offer of an early retirement, do I have to wait until I reach my minimum retirement age to start receiving my annuity? Also, will my payment for unused annual leave hours be included in my last paycheck? A. Anyone who has at least 25 years of service can retire at any age if offered an early retirement opportunity. However, you wouldn’t receive the special retirement supplement until you reach your minimum retirement age. (MRAs range between 55 and 57, depending on your year of birth.) You’ll…

Q. I am planning to retire ASAP but am working out a few issues. I do not want the early retirement penalty (5/12 percent per month) to impact my retirement compensation so understanding how my military time rolls toward my retirement will dictate when I can retire. I will have 27 years of FERS service and four years of paid military time. I will have met my MRA of 57.6 yrs. Does my military credit count toward the 30 years required service time or does my military time only count toward my annuity computation? If it only counts toward the…

Q. My spouse is sick. I am 59 and have 19 years of service. Can I take early retirement and keep my health insurance and life insurance? A. Yes, you could retire under the MRA+10 provision and continue your health and life insurance coverage, as long as you had been enrolled in them for the five consecutive years before you retire. However, your annuity would be reduced by 5 percent for every year you were under age 62. Alternatively, you could ask your employer to let you work part-time and retire on a penalty-free annuity at age 60.

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