Age penalty


Q: In a previous post, there was this question: I have 24 years combined service with the postal service and the military. If I retire next year, I will be 58 with 25 years of service. If I retire, would I be charged the 5 percent reduction in retirement for two years because I will be 60 in two years, or would I be penalized the 5 percent for 4 years, since I would not be 62. You replied: You’d be penalized 5 percent for every year (5/12 percent per month) that you are under age 62.
My question is: If this person waits until they are 60, do they get penalized 5 percent for being under 62?

A: No. There isn’t any age penalty for a FERS employee who has at least 20 years of service and retires at age 60.


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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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