Early retirement


Q. If my agency offered an early retirement package, and I wanted to accept (under FERS — age 56, which is my minimum retirement age, with 18 years service), how would not having the 20 years of service affect me. Am I still a candidate, and would I have to accept penalties? Or do I have to wait until I have the full 20 years?

A. You wouldn’t meet the age and service requirements for early retirement. If you still wanted to leave, you could do so under the MRA+10 provision (minimum retirement age with between 10 and 29 years of service). However, your annuity would be reduced by 5 percent for every year you were under age 62, unless you postponed the receipt of your annuity to reduce or eliminate the penalty.


About Author

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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