Deferred annuities


Q. If I were to have 20 years of creditable FERS service at age 50; then resign and wait until age 62 to claim the FERS annuity, which formula would be used to calculate my annuity:  the standard one (0.01) or the alternative one (0.011)? My confusion on this matter is whether I must be continuously employed until age 62 (for the 0.011 calculation), or can I resign from federal service at 50, wait until 62 to claim annuity, and still have it figured at the 0.011 formula?

A. All deferred annuities are calculated using the standard formula, not the enhanced one.


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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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