Retirement penalty


Q: I’m a FERS employee with a hire date of Jan. 19, 1999. I plan on retiring the day after my 60th birthday in 2015 under MRA+10 with 16 years of service. Will I have to take the 10 percent penalty for being two years under 62, or does being age 60 somehow eliminate it?

A: Yes, the 5 percent-per-year penalty will apply for every year (5/12 percent per month) that you are under age 62. If you had 20 years of service and retired at age 60, the penalty would not apply.


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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

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