MRA+10, buyout and annuity


Q. I am 57, with 10 years of service under FERS. If I am offered and accept a buyout, could I get my full annuity without reduction of 5 percent for every year I am younger than 62 and continue my FEHB family plan? Suppose I take my annuity immediately after this MRA+10 and buyout.

A. No, you couldn’t get your full annuity without reduction because you’d be retiring under the MRA+10 provision. Therefore, your annuity would be reduced by 5 percent for every year you were younger than 62. You could reduce or eliminate that penalty by postponing the receipt of your annuity. If you were enrolled in FEHB for five consecutive years, you could carry that coverage into retirement. If you postponed the receipt of your annuity, you could re-enroll when your annuity begins.


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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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