Q. 1) What are all the deductions that are taken out of a federal employee’s check when they retire? 2) Do these reductions stay at the same amount prior to retirement? 3) I have 33 years of service at age 51. I know there is a 2 percent penalty for each year under 55, but what about the three years I worked over 30? What happens to those? A. 1) Federal income tax; and, depending on your situation, state tax, FEHB, FEGLI and FEDVIP premiums, savings account deductions and allotments to organizations to which you belong. If you are receiving…