Q. I’m planning to retire under the FERS MRA+10 provisions at age 59, with 27 years of continuous federal service. I have the option to take an immediate annuity or to postpone receipt of my annuity until age 60 to avoid part of the age reduction penalty for early retirement: 5 percent per year for each year under age 62. Do I understand the following alternatives correctly? By taking the immediate annuity at age 59, I would be penalized 15 percent, but only for one year, until I turn 60. If I postpone until age 60, there would be no penalty to my annuity. Also, if I take the immediate…
Browsing: Early retirement
Q. For early retirement before age 62, what are the requirements to qualify for the special retirement supplement? How is the SRS amount calculated? If I apply for the SRS, will it reduce my benefit when I apply for Social Security at age 62 or 67? A. If you retire under a Voluntary Early Retirement Authority or Voluntary Separation Incentive Pay, you would be entitled to receive the SRS when you reach your minimum retirement age. The SRS will continue until age 62, when you are eligible for a Social Security benefit, whether or not you apply for it. Receiving the SRS, which is…
Q. I am 50 years old with 24 years of service under FERS. If I am offered a buyout, would the amount of my retirement annuity be based on the amount I would receive if I retired at 62 or a reduced amount minus the 2 percent reduction per year? A. If you accepted a buyout, it would be based on the standard formula: 0.01 x your high-3 x your years and full months of service. There wouldn’t be any penalty for retiring early. P.S. For FERS employees who retire under the MRA+10 provision, the reduction is 5 percent (not 2 percent) for every year…
Q. I am 47 years old, and I’m a nurse in a government hospital. In 2009, I injured my back, which required surgery. I’ve been off sick since 2010, going in and out of doctors. Early this year, I was told by my superiors to come back to work, but I’m still not feeling well. I sometimes can’t even walk because of the screws put into my back. I have asked for early retirement because I have more than 25 years of service, but they won’t allow me. They say I must resign if I don’t want to work. Please…
Q. I am 56 years old with five years in FERS and government health care. If I left early on a buyout or a reduction in force, would I be able to keep government health care? Would I be restricted from working for a government contractor? A. You wouldn’t be able to keep your coverage under the Federal Employees Health Benefits program. However, you would receive 30 days of free coverage in your plan. You would then have the option of extending your coverage for up to 18 months under the temporary continuation provision of law, for which you’d pay 100 percent of…
Q. If my agency offered an early retirement package, and I wanted to accept (under FERS — age 56, which is my minimum retirement age, with 18 years service), how would not having the 20 years of service affect me. Am I still a candidate, and would I have to accept penalties? Or do I have to wait until I have the full 20 years? A. You wouldn’t meet the age and service requirements for early retirement. If you still wanted to leave, you could do so under the MRA+10 provision (minimum retirement age with between 10 and 29 years of service).…
Q. I’m a disabled veteran and have complications with attendance and postal duties. I have 32-plus years of service at age 52. Is there any way that I can get my FERS annuity before my minimum retirement age, which is 56 without applying for FERS disability? A. The only way for you to retire before your MRA — other than on disability — is if your agency were to offer you an opportunity to retire early.
Q. I am a CSRS employee and was offered an early retirement by July 31 by Voluntary Separation Incentive Payments. I will be 53 in November. If I take this offer to leave two years and four months early, am I losing — as opposed to waiting the two years and four months until age 55. They are giving $20,000 in two lumps — $10,000 in December 2012 and the other $10,000 in December 2013. A. If you retire before reaching age 55, your annuity will be permanently reduced by 2 percent for every year you are under age 55…
Q. I have 23 years and 11 months in the Postal Service. I am going to be 60 on June 26. I have not been able to work since June 21, 2011, and have been on leave without pay. I applied for Social Security disability and was turned down. My assessment was inconclusive, leaving out the reason for my disability. So I have a lawyer who states I have and excellent case, which he says may not be resolved until the beginning of 2013. About a month ago, I put in for early retirement due to financial hardship. Later, I…
Q. I am a FERS employees who retired Dec. 31, 2011, accepting a VERA/VSIP. I had planned to retire at age 62. I am 61 and will be turning 62 in August with 16 years of federal service. How and how much was I penalized for accepting the early-out? A. Your annuity would have been reduced by 5/12 of 1 percent for every month you were under age 62.