Early-out authority under OPM major restructure


Q. I am confused and the booklets don’t make it very clear. I will be 56 in January 2011. At that time I will have 26 years and four months of service.  I am a FERS employee. It was my understanding that I may be eligble for early out under the provision of 25/Any Age. Our agency has recieved an Early Out Authority from OPM. Since I am at MRA, will I have to pay any penalty for retiring before I have reached 59  — the year I will reach 30 years of service (i.e:  the fractional amount for every month I am less than 30 years of service)?

A. When an opportunity to retire early is offered by an agency, employees only need to meet the following qualification requirements: age 50 with 20 years of service or at any age with 25. There is no age penalty for retiring early.

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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.

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