Annuity reduction


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.


About Author

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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